Accounting Memo
The cash flow statement provides information about a company's cash receipts and cash payments during an accounting period, showing how these cash flaws link the ending cash balance to the beginning balance shown on the company's statement of financial position.
The cash flow statement consists of three parts: cash flows provided by operating activities, cash flows provided by investing activities, and cash flows provided by financing activities.
The operating section adjusts the net profit figure for non cash items such as depreciation, deferred tax and adjustments and also for changes in working capital during the period. This is the cash flow generated by the business and in Apple’s case amounted to $53.666 million. The reported segaments in this section are what we expected to be on there like Account Receivables, inventories, Accounts Payable, and depreciation; all the cash flows that run Apple’s business and that they use day to day. The investing section highlights how the cash was spent, on investing activities such as fixed assets and on acquiring securities and other companies. In Apple’s case the cash was spent mainly on investments like net buying Treasury bills and other securities of $38 billion! The notes state that $148,489 million of securities were purchased and $20,317 million were sold or matured and a further $496 million of business acquisitions were made. Apple also acquired property, plant and machinery of $8,165 million and intangible assets of $911 million. Once again all of these accounts were expected of our company because they are accounts we have talked about throughout the last several memos. The financing section shows how much was spent on repaying borrowings, any cash raised from any new borrowings or from new share issues, which Apple did not have. This will also show any dividends paid to shareholders and any share buybacks. Apple had a net cash outflow of $16,379 million from financing activities, mainly from paying
The cash flow statement consists of three parts: cash flows provided by operating activities, cash flows provided by investing activities, and cash flows provided by financing activities.
The operating section adjusts the net profit figure for non cash items such as depreciation, deferred tax and adjustments and also for changes in working capital during the period. This is the cash flow generated by the business and in Apple’s case amounted to $53.666 million. The reported segaments in this section are what we expected to be on there like Account Receivables, inventories, Accounts Payable, and depreciation; all the cash flows that run Apple’s business and that they use day to day. The investing section highlights how the cash was spent, on investing activities such as fixed assets and on acquiring securities and other companies. In Apple’s case the cash was spent mainly on investments like net buying Treasury bills and other securities of $38 billion! The notes state that $148,489 million of securities were purchased and $20,317 million were sold or matured and a further $496 million of business acquisitions were made. Apple also acquired property, plant and machinery of $8,165 million and intangible assets of $911 million. Once again all of these accounts were expected of our company because they are accounts we have talked about throughout the last several memos. The financing section shows how much was spent on repaying borrowings, any cash raised from any new borrowings or from new share issues, which Apple did not have. This will also show any dividends paid to shareholders and any share buybacks. Apple had a net cash outflow of $16,379 million from financing activities, mainly from paying