DEPARTMENT OF BUSINESS STUDIES
PRINCIPLES OF ACCOUNTING
ASSIGNMENT # 02
GROUP MEMBERS: MUHAMMAD RAFAY TAHIR,
ROHAIL AKHTER,
OMAR FAROOQ KHAN
Class: BS(A&F) -1C
date f submission: 24 MAY 2025
NAME OF THE COMPANY: APPLE COMPANY
INFORMATION ABOUT THE COMPANY:
Company information:
Industry Classification:
• Apple operates under the following NAICS codes:
• 334220 – Radio and Television Broadcasting and Wireless
Communications Equipment Manufacturing
• 334111 – Electronic Computer Manufacturing
• Nature of Business:
• Apple Inc. is a multinational technology company that designs,
manufactures, and markets consumer electronics, software, and online
services. Its business encompasses hardware products, proprietary
software platforms, and a suite of digital services
• Primary Products and Services:
• Apple's flagship products and services include:
· iPhone – Smartphones
· Mac – Personal computers
· iPad – Tablets
· Apple Watch – Smartwatches\
· AirPods – Wireless earbuds
· Apple TV – Digital media players
· HomePod – Smart speakers
· Apple Vision Pro – Mixed reality headset
· Software Platforms: iOS, macOS, watchOS, and tvOS
Corporate Headquarters Address:
One Apple Park Way
Cupertino, CA 95014
United States
Website Address:
www.apple.com
Countries of Operation:
Apple has a global presence, operating in numerous countries across:
Americas: United States, Canada, Brazil, Mexico, Colombia, Chile
· Europe: United Kingdom, Germany, France, Italy, Spain, Netherlands,
Sweden, and more
· Asia-Pacific: China, India, Japan, South Korea, Australia, Singapore, and
others
Middle East & Africa: United Arab Emirates, South Africa, and others
Revenue for the Most Recent Fiscal Year (2023):
$383.29 billion
Chairman of the Board:
Arthur D. Levinson
Chief Executive Officer (CEO):
Tim Cook
Market Data:
· Stock Exchange:
NASDAQ
· Ticker Symbol:
• AAPL
• Stock Price (as of May 23, 2025):
• Closing Price: $201.36
• Date: May 23, 2025
• 52-Week Stock Price Range:
• Low: $169.21
• High: $260.10
.Recent Article Summary
Article Title:
"Apple defies Trump to expand India manufacturing"
Source:
Financial Times, May 23, 2025
Summary:
In May 2025, Apple announced a significant expansion of its
manufacturing operations in India, directly challenging U.S. President
Donald Trump's directive to repatriate production. The company's
primary contractor, Foxconn, is investing $1.5 billion in a display module
plant near Chennai and establishing a $450 million semiconductor
assembly unit in Uttar Pradesh in partnership with HCL Technologies.
These strategic moves aim to diversify Apple's supply chain away from
China, with India emerging as a critical hub. The Indian government's
$2.7 billion investment in its production-linked incentive scheme has
further bolstered the country's attractiveness for electronics
manufacturing. Apple's decision underscores its commitment to global
supply chain diversification despite political pressures.
Accounting Equation
🔹 Year (2023):
Assets: $352.58 billion
Liabilities: $290.44 billion
Stockholders’ Equity: $62.15 billion
Equation: ✅ $352.58B = $290.44B + $62.15B
🔹 Year (2022):
Assets: $352.76 billion
Liabilities: $302.08 billion
Stockholders’ Equity: $50.67 billion
Equation: ✅ $352.76B = $302.08B + $50.67B
⦁ Computations:
🔹 Year (2023):
Current Assets: $143.57 billion
Current Liabilities: $145.31 billion
Working Capital:
= $143.57B − $145.31B
= −$1.74 billion
🔹 Year (2022):
Current Assets: $135.41 billion
Current Liabilities: $153.98 billion
Working Capital:
= $135.41B − $153.98B
= −$18.57 billion
Information for Decision Making:
a. Significant Asset Investments:
Apple's most significant investments are in its product inventory,
property, plant, and equipment, and research and development to support
its hardware and software innovations.
b. Financing Structure:
Apple utilizes a mix of debt and equity financing. The company has
issued debt to fund share repurchases and dividends while maintaining
substantial equity through retained earnings.
c. Debt Composition:
Apple's debt includes both short-term and long-term obligations, with a
significant portion being long-term debt instruments like bonds.
d. Changes in Assets or Liabilities:
Specific changes in individual assets or liabilities are not detailed in the
provided data.
e. Changes in Current Assets or Liabilities:
Specific changes in the composition of current assets or liabilities are not
detailed in the provided data.
f Debt-Paying Ability:
Apple's strong cash flows and substantial cash reserves indicate a robust
ability to meet its debt obligations.
6. Income Statement Analysis
• Period Covered:
Fiscal Year 2023
• Statement Format:
Apple's income statement follows a multiple-step format,
presenting detailed breakdowns of revenues, cost of goods sold,
gross profit, operating expenses, and net income.
Information for Decision Making:
a. Revenue Trend:
Apple's total revenue for 2023 was $383.29 billion, a 2.8% decrease
from 2022's $394.33 billion.
b. Revenue Increase/Decrease Over Three Years:
• 2021: $365.82 billion
• 2022: $394.33 billion (7.8% increase)
• 2023: $383.29 billion (2.8% decrease)Macrotrends+2NAICS
Association+2Apple+2Macrotrends
•
c. Operating Expenses to Operating Revenues Ratio:
Specific ratios are not provided in the available data.
d. Significant Changes in Revenue or Expense Items:
Detailed percentage changes in individual revenue or expense items over
the three-year period are not specified in the provided data.
