BU.210.620- Assuming that Apple makes all sales on account,
Please limit your report into 4 pages, double spaced.An acceptable report should address the following questions. 1. Assuming that Apple makes all sales on account, compute the amount of cash collected from customers during 2014.2. Compute the cost of inventory (either newly purchases or manufactured) during 2014.3. Assume that all of Apple’s inventory purchases are made on account, compute the amount of cash paid to suppliers of inventory during 2014.4. Identify Apple’s working capital and current ratio in 2014. Comment on how have they changed from 2013? Identify the sources of the changes.5. Determine if Apple has any advances from customers. a) Compute how much the advances from customers account for Apple’s current liabilities in 2014. b) Comment on how does this percentage compare to that in 2009? c) Establish the business challenges Apple faces when managing large amount of advances from customers. d) Detect the factors that may contribute to the change in the trend of advances from customers.6. Compute how much the accounts receivable account contributes to Apple’s current assets in 2014? a) Comment on how this percentage compares to that in 2009. b) Identify the pros and cons of selling more on account.7. Find out the cash cycle of Apple in 2014 and interpret what the number indicates.
