1. Using Apple’s actual 9/30/17 balance sheet to answer this question, which of the following best...

1. Using Apple’s actual 9/30/17 balance sheet to answer this question, which of the following best represents Apple’s Accounting Equation?

a. $375,319,000,000 = $241,272,000,000 + $134,047,000,000

b. $128,645,000,000 = $100,814,000,000 + $27,831,000,000

c. $194,714,000,000 = $100,814,000,000 + $93,900,000,000

d. $241,272,000,000 = $107,225,000,000 + $134,047,000,000

2. Using Apple’s actual 9/30/17 balances shown in the balance sheet to answer this question, what would be the impact to their accounting equation if Apple took out a new $1,000,000,000 bank loan in exchange for cash?

a. Assets would decrease $1,000,000,000 and Stockholders’ equity would decrease $1,000,000,000

b. Assets would decrease $1,000,000,000 and Liabilities would increase $1,000,000,000

c. Assets would increase $1,000,000,000 and Liabilities would increase $1,000,000,000

d. Assets would increase $1,000,000,000 and Stockholders’ equity would increase $1,000,000,000

3. Using Apple’s actual 9/30/17 balances shown in the balance sheet to answer this question, what would be the new Total Liabilities if Apple took out a new $1,000,000,000 bank loan?

a. $242,272,000,000

b. $376,319,000,000

c. $135,047,000,000

d. $100,814,000,000

Solutions

Expert Solution

Accounting equation or Balance sheet equation is

Assets = Stockholder's Equity + Total Liabilites

As per Apples Balance sheet on 09/30/2017:

Assets = $375,319 million = $375,319,000,000

Stockholders or Shareholders Equity = $134,047 million = $134,047,000,000

Total liabilites = $241,272 million = $241,272,000,000

Answer is a Assets = Total Liabilities + Shareholders Equity $375,319,000,000 = $241,272,000,000 + $134,047,000,000
Answer is c If Apple took out a new $1,000,000,000 bank loan in exchange for cash, asset in the form of cash will increase by $1,000,000,000 and at the same time liability in the form of bank loan will increase by $1,000,000,000 (since the comapany has as an obligation to repay the bank loan to the bank in future years).
Answer is a Companies Total liabilites before loann taken from the bank = $241,272,000,000 Amount of loan taken from the bank = $1,000,000,000 Total liabilities = $241,272,000,000 + $1,000,000,000 = $242,272,000,000 .

ekkarill92 answered 7 months ago

Next > < Previous

Related Solutions

Use the following balance sheet information to answer this question. Balance Sheet (dollars in thousands) and...

Use the following balance sheet information to answer this question. Balance Sheet (dollars in thousands) and Duration (in years) Duration Amount T-bills 0.5 90 T-notes 0.9 55 T-bonds 4.393 176 Loans 7 2,724 Deposits 1 2,092 Federal funds 0.01 238 Equity 715 A )What is the average duration of all the assets? B )What is the average duration of all the liabilities? C )What is the FI’s leverage-adjusted duration gap? What is the FI’s interest rate risk exposure? D...

Which of the following is the best example of a blue ocean strategy — Apple’s entry...

Which of the following is the best example of a blue ocean strategy — Apple’s entry into MP3 players with its iPod models or Dell’s entry into LCD TVs or Audi’s recent move to bring out a luxury SUV? Explain. Which of the following is the best example of a blue ocean strategy — Apple’s entry into MP3 players with its iPod models or Dell’s entry into LCD TVs or Audi’s recent move to bring out a luxury SUV? Explain.

Using the information below to answer question (a) to (e). The balance sheet and income statement...

Using the information below to answer question (a) to (e). The balance sheet and income statement shown below are for Rebel Inc. Note that the firm has no amortization charges and it does not lease any assets. Its tax rate is 35%. Balance Sheet (Millions of $) 2014 2013 Assets Cash and securities $2,500 $2,000 Accounts receivable 11,500 $11,000 Inventories 16,000 15,500 Total current assets $30,000 $28,500 Net plant and equipment $20,000 $19,500 Total assets $50,000 $48,000 Liabilities and Equity...

Choose the BEST answer for the following question. Which one is NOT an example of IT...

Choose the BEST answer for the following question. Which one is NOT an example of IT infrastructure? Select one: a. IT Services b. IT Components c. IT Personnel d. Business Intelligence Dashboards

Client Name: Apple Inc. Budget Actual For the Period Ended: 9/30/17 Start Date: 7/31/17 Nature of...

Client Name: Apple Inc. Budget Actual For the Period Ended: 9/30/17 Start Date: 7/31/17 Nature of Assignment: Integrated Audit End Date: 10/31/17 Hours: 36,000 Audit steps for tests of controls, balances, transactions, analytical procedures, etc. as well as other considerations such as sample size and sample methodology. (a) (b) (c) (d) (e) (f) (g) WP Requirement Procedure Comp Notes and Evidence Date Init. 8.0 (Acquisition) 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 9.0 (Payment) 9.1 9.2 9.3 9.4 9.5...

Select the best answer for the question. 1. Which of the following statements about engine configurations...

Select the best answer for the question. 1. Which of the following statements about engine configurations is true? A. V-type engines are less expensive to overhaul than inline engines. B. The most popular diesel engine configuration is the V-type engine. C. In an inline engine, the cylinders are set at an angle to the crankshaft. D. V-type engines are normally shorter in length and lower in height than inline engines.

Apple’s balance sheet for the most recent fiscal year yields the following information related to accounts...

Apple’s balance sheet for the most recent fiscal year yields the following information related to accounts receivable: Accounts Receivable $17,932,000,000 Allowance for Doubtful Accounts 58,000,000 Accounts Receivable, Net $17,874,000,000 Provide several sentences to describe the meaning of each line item and related dollar amount shown above for Accounts Receivable, Allowance for Doubtful Accounts, and Accounts Receivable, Net.

1. Which of the following is a limitation of the balance sheet?

1. Which of the following is a limitation of the balance sheet? A) Many items that are of financial value are omitted. B) Judgments and estimates are used. C) Current fair value is not reported. D) All of these answer choices are correct. 2. The correct order to present current assets is A) cash, accounts receivable, prepaid items, inventories. B) cash, accounts receivable, inventories, prepaid items. C) cash, inventories, accounts receivable, prepaid items. D) cash, inventories, prepaid items, accounts receivable. 3. The current assets section of the balance sheet should include A)...

Problem 9-17 WACC Estimation The following table gives the balance sheet for Travellers Inn Inc. (TII),...

Problem 9-17 WACC Estimation The following table gives the balance sheet for Travellers Inn Inc. (TII), a company that was formed by merging a number of regional motel chains. Travellers Inn: (Millions of Dollars) Cash $10 Accounts payable $10 Accounts receivable 20 Accruals 10 Inventories 20 Short-term debt 5 Current assets $50 Current liabilities $25 Net fixed assets 50 Long-term debt 30 Preferred stock 5 Common equity Common stock $10 Retained earnings 30 Total common equity $40 Total assets $100...

1. Which of the following statements about the balance sheet are true? A classified balance sheet...

1. Which of the following statements about the balance sheet are true? A classified balance sheet to provide useful information about liquidity and long-term solvency. A classified balance sheet to provide useful information about liquidity and long-term solvency. Liquidity refers to an assessment of whether a company will be able to pay all its liabilities. Liquidity refers to an assessment of whether a company will be able to pay all its liabilities. Although many valuable resources are not recorded as...

Subjects