Financial Assignment 4, ACCT 5301 Due date: April 25, 2014
Block 14A , 25 points
Groups (maximum 4-5 members) are encouraged, but not required. Please submit one copy of the assignment with all group members listed to me via Blackboard or directly through.
For this assignment, please use the Apple 10-K from blackboard (or download from the Apple investor relations website) for the year ended September 29, 2012.
FOR EACH OF THE QUESTIONS BELOW, YOU SHOULD INDICATE THE PAGE NUMBER(S) IN THE 10-K WHERE YOU FOUND THE ANSWER.

1. What did Apple report for cash and cash equivalents for 2012? How much of this balance is actually cash?
Cash/ Cash Equivalents- $ 121,251 (pg 38)
Actual Cash flow- $50,856 (pg 38)

2. Locate the disclosure relating to the Allowance for Doubtful Accounts. (a) What balances did Apple report as in their Allowance for Doubtful Accounts for 2011 and 2012?

(b) Assuming that Apple did not write off any accounts in 2012, approximately what did Apple recognize for bad debt expense in 2012? Hint: use a T-account!

(c) What is the trend in Apple’s ratio of allowance to net receivables, and what does this suggest for Apple’s confidence on their ability to collect their receivables?

3. (a) What does Apple report for total marketable securities (short-term plus long-term) on the balance sheet for 2012 and 2011? How much did the total balance increase by?
Marketable Securties

2011 Page (55)
Long Term- $55,618
Short Term-$16,137
2012
Long Term- $92,122
Short Term$18,383

(b) How much did Apple report for cash used to purchase marketable securities in 2012?
STMS+LTMS (page 45)
=$18,343+$92,122
=$110,465 (c) How much did Apple report for cash proceeds from the maturity and sale of marketable securities in 2012?
Maturity of marketable securties$13,035 (page 47)
Sale of marketable securties$99,770 (d) How is Apple accounting for its marketable securities? Hint: Apple doesn’t provide the actual term, but does provide a description that allows you to determine how they are classifying their marketable securities.
They are classifying it as “available for sale” (page 52) (e) What did Apple report for a gain (or loss) on marketable securities for 2012?

2011= $71,755 2012=$ 110,465 gained a total of $38,710

(f) Finally, assuming that sales proceeds roughly equal the book value of marketable securities, reconcile the change in reported amounts on the balance sheet to the purchases, maturities, sales, and gains/losses. How much of the change remains unexplained?

4. (a) What does Apple report for other non-current liabilities?
2011 reporting (pg 60)
$10,100
2012 reporting
$16,664
(b) How much of this balance is made up of deferred tax liabilities?
2011 Deferred tax (pg 60)
$8,159
2012 Deferred tax
$13,847

(c) What future cash outflow will Apple make to settle these deferred tax liabilities?
Foreign currency forward and option contract to offset liabilities (pg 56)
5. Out of the total provision for income taxes for 2012, how much will Apple actually pay?

6. What did Apple report related to contingencies? Did Apple recognize any amounts related to contingencies on its income statement or balance sheet?