Apple Inc. designs, manufactures, and markets personal computers and related software.Apple also manufactures and distributes music players (iPod) and mobile phones (iPhone)along with related accessories and services, including online distribution of third-partymusic, videos, and applications. The following information was taken from a recent an-nual report of Apple:Property, Plant, and Equipment (in millions):PrecedingYearCurrentYearLand and buildings$ 6,956$ 4,863Machinery, equipment, and internal-use softwareOther fixed assets37,03829,6395,2634,513Accumulated depreciation and amortization(26,786)(18,391)a. Compute the book value of the fixed assets for the current year and the precedingyear and explain the differences, if any.Would you normally expect Apple's book value of fixed assets to increaseb.or decrease during the year? Why?

The book value of the fixed assets for the current and the preceding year is $22,471 and $20,624…

Answered: Apple Inc. designs, manufactures, and…

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter9: Receivables

Section: Chapter Questions

Problem 4CP

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Cannington Inc. designs, manufactures, and markets personal computers and related software. Cannington also manufactures and distributes music players (cPod), mobile phones (cPhone), and smartwatches (Cannington Watch) along with related accessories and services, including online distribution of third-party music, videos, and applications. The following information was taken from a recent annual report of Cannington: Line Item Description Current Year Preceding Year Land and buildings $632,810 $367,030 Machinery, equipment, and internal-use software 601,170 474,608 Other fixed assets 765,700 575,857 Accumulated depreciation and amortization (803,669) (670,779) a. Compute the book value of the fixed assets for the current year and the preceding year.Current year book value (in millions) :Preceding year book value (in millions) : A comparison of the book values of the current and preceding years indicates that they fill in the blank 1 of 3 .…
Cannington Inc. designs, manufactures, and markets personal computers and related software. Cannington also manufactures and distributes music players (cPod), mobile phones (cPhone), and smartwatches (Cannington Watch) along with related accessories and services, including online distribution of third-party music, videos, and applications. The following information was taken from a recent annual report of Cannington: Line Item Description Current Year Preceding Year Land and buildings $632,810 $367,030 Machinery, equipment, and internal-use software 601,170 474,608 Other fixed assets 765,700 575,857 Accumulated depreciation and amortization (803,669) (670,779) a. Compute the book value of the fixed assets for the current year and the preceding year.Current year book value (in millions) fill in the blank 1 of 2$Preceding year book value (in millions) fill in the blank 2 of 2$ A comparison of the book values of the current and preceding years…
Apple Inc. designs, manufactures, and markets personal computers and related personal computing and communicating solutions for sale primarily to education, creative, consumer, and business customers. Substantially all of the companys sales over the last five years are from sales of its Macs, iPods, iPads, and related software and peripherals. For two recent fiscal years, Apple reported the following (in millions): Assume that the accounts receivable (in millions) were 24,094 at the beginning of fiscal Year 1. 1. Compute the accounts receivable turnover for Year 2 and Year 1. Round to two decimal places. 2. Compute the days sales in receivables at the end of Year 2 and Year 1. Use 365 days and round to one decimal place. 3. What conclusions can be drawn from (1) and (2) regarding Apples efficiency in collecting receivables?
Brill Company made the following expenditures during the current year: Costs to develop computer software for internal use in Brill’s general management information system: 1 000 000 Cost of market research activities 750 000 How much Brill Company's expense?
Pandora Corporation operates several factories in the Midwest that manufacture consumer electronics. The December 31, 2021, year-end trial balance contained the following income statement items: Account Title Debits CreditsSales revenue $ 12,500,000Interest revenue 50,000Loss on sale of investments $ 100,000Cost of goods sold 6,200,000Selling expense 620,000General and administrative expense 1,520,000Interest expense 40,000Research and development expense 1,200,000Income tax expense 900,000 Required:Calculate…
South Africa (Pty) Ltd has been in the business of delivering small packages for local companies within the city of Tshwane, since the year 2000. The following information concerning financial activities during 2017 is available at December 31, 2017 Delivery revenue R380,000 Salary and wage expense R82,000Dividends declared and paid 85,000 Rent expense 43,000Buildings 140,000 Land 60,000Accounts payable 30,000 Accounts payable 30,000Capital stock 105,000 Retained earnings,Water, gas, and January 1, 2017 42,000electricity 28,000 Notes payable 34,000Cash 56,000 Income tax expense 18,000 1. Prepare an income statement for the year…
On October 1, 2021, Santana Rey launched a computer services company, Business Solutions, that is organized as a corporation and provides consulting services, computer system installations, and custom program development. October 1 S. Rey invested $54,000 cash, a $28,000 computer system, and $9,500 of office equipment in the company in exchange for its common stock. October 3 The company purchased $1,510 of computer supplies on credit. October 6 The company billed Easy Leasing $5,700 for services performed in installing a new web server. October 8 The company paid $1,510 cash for the computer supplies purchased on credit on October 3. October 10 The company hired a part-time assistant. October 12 The company billed Easy Leasing another $1,800 for services performed. October 15 The company received $5,700 cash from Easy Leasing as partial payment toward its account. October 17 The company paid $735 cash to repair its computer equipment. October 20 The company paid…
The following is the Trial Balance of docutech Ltd, a dealer in ICT Equipment, as at 31st December, 2021. GHS GHS Capital 240,000 Receivables and Payables 159,000 51,000 Inventory 99,000 Motor vehicles: (cost) 72,500 Accumulated depreciation (31 December 2020) 32,500 Office equipment: (cost) 90,000 Accumulated depreciation (31 December 2020) 30,000 Administrative expenses 26,000 Purchases and sales 243,750 490,500 Employee benefits 33,000 Selling expenses 20,000 Plant: (cost) 125,000 Accumulated depreciation (31 December 2020) 37,500 Discounts 7,500 12,500 Accruals 79,000…
Abby Inc. is an established computer software company. In 2009, the firm incurred the following costs in the process of designing, developing and producing a new software program using a certain technology to access the Internet: Designing and planning P1,800,000 Code development 2,700,000 Testing 900,000 Production of product master 4,500,000 In 2010, Abby incurred P1,800,000 in costs to produce the software program for sale in 2010. The costs of designing and planning, code development and testing were all incurred before the technological feasibility of the product was established. Abby began marketing the software program in 2010 and earned revenues of P4,320,000 in 2010. Abby estimates that the total revenues over the 4-year life of the product will be P21,600,000. At the end of 2010, Abby was offered…
Abby Inc. is an established computer software company. In 2009, the firm incurred the following costs in the process of designing, developing and producing a new software program using a certain technology to access the Internet: Designing and planning P1,800,000 Code development 2,700,000 Testing 900,000 Production of product master 4,500,000 In 2010, Abby incurred P1,800,000 in costs to produce the software program for sale in 2010. The costs of designing and planning, code development and testing were all incurred before the technological feasibility of the product was established. Abby began marketing the software program in 2010 and earned revenues of P4,320,000 in 2010. Abby estimates that the total revenues over the 4-year life of the product will be P21,600,000. At the end of 2010, Abby was offered…
Swell Computers is a public company that manufactures desktop and laptop computers. The components of the financial statements are: (1) income before taxes = $500,000, (2) total assets = $2.2 billion, and (3) total revenues = $7 billion. Swell Computers' CPA firm might use the lowest percentage for total assets for determining overall materiality, but they also consider qualitative factors. a. Determine overall materiality and tolerable misstatement. Justify your decisions.
The following is the Trial Balance of Sonia HR Enterprises, a dealer in HR Software, as at 31st December, 2021. GHS GHS Capital 240,000 Receivables and Payables 159,000 51,000 Inventory 99,000 Motor vehicles: (cost) 72,500 Accumulated depreciation (31 December 2020) 32,500 Office equipment: (cost) 90,000 Accumulated depreciation (31 December 2020) 30,000 Administrative expenses 26,000 Purchases and sales 243,750 490,500 Employee benefits 33,000 Selling expenses 20,000 Plant: (cost) 125,000 Accumulated depreciation (31 December 2020) 37,500 Discounts 7,500 12,500 Accruals 79,000 Investment income 27,500 Returns 12,000 17,500 Cash and…

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