Assignment 5: Working capital, Long-lived Assets and Long-term Debt
Overview of the Assignment
– Analyze Apple’s Financial Statements of 2013. You can retrieve Apple’s annual report
from http://www.sec.gov/edgar/searchedgar/companysearch.html by searching Apple Inc.
10-k indicates annual reports; 10-q indicates quarterly reports. You will focus on annual reports
for this assignment.
You have been tasked with the job of analyzing Apple’s financing decisions in 2013 and reporting to
the investor your findings.
The following list of questions provides a good start. Please limit your report into 4 pages, double
spaced. An acceptable report should address the following questions.
a. What is the cash cycle of Apple in 2013? What does the number indicate?
b. What is the largest amount of cash generated by Apple’s financing activities? What is
the transaction that contributes to this large cash inflow?
c. What is the largest amount of cash used by Apple’s financing activities? What is the
transaction that contributes to this large cash outflow?
d. Explain the reasons why Apple made those decisions.
e. If you were a bong investor, will you be interested in holding Apple’s bonds? What are
the strengths and challenges of Apple’s long-term debt?
f. If you were an equity investor, were you happy about Apple’s financing decisions in
2013? What signals did you get from those decisions and how did they impact your
investment decisions?
