Based on Apple's 2019 financial statements, will Apple's financial health improve or deteriorate over the next...

Based on Apple's 2019 financial statements, will Apple's financial health improve or deteriorate over the next five years? What actions can Apple Inc take to maximize the use of its cash flows

Expert Solution

Apple recorded huge operating cash flow of $26.7 billion in last quarter of December, 2018. During, last quarter, an all-time high EPS (Earning Per Share) is also generated of $4.18 billion and distributed $13 billion to shareholders in form of dividend and share repurchase. Apple is still trying to target a cash neutral position over the time.
As per latest financial statement of year, 2019, operating cash flow was $37.8 billion in first quarter of March, 2019. and EPS is also $2.46 generated till the end of first quarter of march, 2019. Therefore, the performance of apple is progressive in nature.
Based on above, we can conclude that Apple will perform better in next five years and will fulfill the requirement of all stakeholders.
As per annual financial statement of 2018, revenue from iPhone declined by 15% from previous year. therefore, Apple has to do something innovative in iPhone to increase the revenue for investors and other stakeholders.

ekkarill92 answered 2 years ago

Forecast Apple's free cash flows for each of the next five years based on Apple's free...

Forecast Apple's free cash flows for each of the next five years based on Apple's free cash flow for 9/24/2016 and 9/30/2017. Assume that the changes in operating assets and liabilities is $0 for each of the years in your forecast period (9/30/18 - 9/30/22).

Navigate to the notes to the financial statements and locate APPLE'S note on their statement of...

Navigate to the notes to the financial statements and locate APPLE'S note on their statement of cash flows that was prepared using an indirect method. Discuss an item that was included when calculating net income but is adjusted as an increase or decrease to determine cash provided by (used in/by) operating activities. Specifically an asset, liability, gain, or loss. Include a summary of how that item impacted net income (or net loss) and why an adjustment might be necessary to...

Company P prepares Financial Statements based on IFRS and Company S prepares Financial Statements based on...

Company P prepares Financial Statements based on IFRS and Company S prepares Financial Statements based on GAAP. How to ues their Financial Statements to make decisions and how to compare.

Over the next few years economist expect that the next financial bubble might be the high...

Over the next few years economist expect that the next financial bubble might be the high debt of organizations bursting. A. Explain the difference between highly leveraged firms and low leveraged firms in regards to fixed and variable costs B. What are the benefits of being highly leveraged and the downfalls. C. Explain the benefits of being low leveraged firm and the potential downfalls.

Review Apple Inc.'s financial statements in 2018 10K form and write two paragraphs about Apple's horizontal...

Review Apple Inc.'s financial statements in 2018 10K form and write two paragraphs about Apple's horizontal financial analysis.

The financial statements report the financial health and progress of a company. Select a financial report...

The financial statements report the financial health and progress of a company. Select a financial report from online and explain what information it provides for decision making.

What financial statements and financial ratios can be used to quantify the financial health of a...

What financial statements and financial ratios can be used to quantify the financial health of a firm. How might this information be useful to individuals outside of the accounting world? Please include examples to support your posting.

Audit of Internal Control Over Financial Reporting that is Integrated with an Audit of Financial Statements,"...

Audit of Internal Control Over Financial Reporting that is Integrated with an Audit of Financial Statements," provides a guide for auditors when performing integrated audits. by visiting PCAOB website How should the auditor determine which controls to test? How might the auditor use evidence obtained in the audit of the financial statements when concluding on the effectiveness of internal control over financial reporting?

Find financial statements for a health organization to conduct research on

What can be done to improve the financial health of Social Security? Describe the benefits and...

What can be done to improve the financial health of Social Security? Describe the benefits and drawbacks of the major proposals to change Social Security as outlined in the reading, “The Future of Social Security: Proposals You Should Know About.” Which course of action do you favor?

Question