Saturday, 10 August 2013

The statement of cash flows for Apple Inc. contained the following information (in millions) for the year ended September 27, 2008: Operating Activities Net Income $ 4,834 Depreciation 473 Changes in current assets and current liabilities Accounts Receivable (785 ) Inventories (163 ) Accounts Payable 596 Unearned Revenue 5,642 Other adjustments (1,001 ) ________________________________________ ________________________________________ ________________________________________ Net Cash Provided by Operations $ 9,596 ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________ Required: For each of the four current asset and liability accounts listed in the operating activities section of the statement of cash flows, determine whether the account balances increased or decreased during the period. Account Change Accounts Receivable Increase Inventories Increase Accounts Payable Increase Unearned Revenue Increase ________________________________________


The statement of cash flows for Apple Inc. contained the following information (in millions) for the year ended September 27, 2008:

 
Operating Activities



  Net Income
$
4,834

  Depreciation

473

  Changes in current assets and current liabilities



       Accounts Receivable

(785
)
       Inventories

(163
)
       Accounts Payable

596

       Unearned Revenue

5,642

       Other adjustments

(1,001
)




  Net Cash Provided by Operations
$
9,596










Required:
For each of the four current asset and liability accounts listed in the operating activities section of the statement of cash flows, determine whether the account balances increased or decreased during the period.
 
Account
Change
  Accounts Receivable
Increase correct  
  Inventories
Increase correct  
  Accounts Payable
Increase correct  
  Unearned Revenue
Increase correct