Question

1. Who audited Apple Inc.'s financial statements as of, and for the period ended September 30, 2017?
2. According to Apple Inc.'s balance sheet as of September 30, 2017, what is their largest asset?
3. According to the following website, what are the four main sections of the 10-K or 10-Q
   1. The Sections Of The 10-Q And 10-K
4. The following is adapted from Financial Management for Executives (2nd ed.): Presented below is a list of financial statement accounts. Using the letter A for assets, L for liabilities, SE for shareholders’ equity, R for revenue, E for expenses, and N/A for not applicable, identify (a) whether the listed accounts appear on the balance sheet (B/S) or the income statement (I/S), and if so, (b) the nature of the account (i.e., A, L, SE, R, E, or N/A).
   1. Cash flow for operating activities
   2. Inventory
   3. Cost of goods sold
   4. Marketable securities
   5. Accounts receivable
   6. Retained earnings
   7. Income tax expense
   8. Cash
   9. Depreciation expense
   10. Common stock
   11. Accounts payable
   12. Dividends paid
   13. Miscellaneous revenue
   14. Office supplies
   15. Salaries payable
   16. Land
5. The following is adapted from Financial Management for Executives (2nd ed.): Compute the return on assets (ROA) for La Verne Company using end-of-year assets in your calculation.
   1. Total revenue …………………………………$250,000
   2. Total expenses…………………………………$190,000
   3. Total assets …………………………………$400,000
6. The following is adapted from Financial Management for Executives (2nd ed.): Compute the missing amounts from the financial statements on pages 33-35 of your textbook. You may assume that accounts receivable relate only to credit sales and that accounts payable relate only to credit purchases of inventory. There were no sales of property and equipment during 2015 and any purchases of property and equipment were made using cash.

Answer 1

Solution ;

	B/S    or   I/S	Nature of a/c
Cash flow from operating activities	I/S	R
Inventory	B/S	A
Cost of goods sold	I/S	E
Marketable securities	B/S	A
Accounts receivable	B/S	A
Retained earnings	B/S & I/S	I
Income tax expenses	I/S	E
Cash	B/S	A
Depreciation expenses	I/S	E
Common stock	B/S	SE
Accounta payable	B/S	L
Divident paid	N/A	N/A
Miscellaneous revenue	I/S	R
Office supplies	B/S	A
Salary payable	B/S	L
Land	B/S	A

2. Calculation of return on asset for La Verna Company

     ROA = Net income / Avg Total assets

   Net income = Total revenue - Total expenses

                      = 250,000 - 190,000

                      = 60,000

Total asset = 400,000

ROA = 60,000 / 400,000

            = 0.15