Question

BTN 6-1 Refer to Apple’s financial statements in Appendix A to answer the following.

1. For both fiscal years ended September 26, 2015, and September 27, 2014, identify the total amount of cash and cash equivalents. Determine the percent (rounded to one decimal) that this amount represents of total current assets, total current liabilities, total shareholders’ equity, and total assets for both years. Comment on any trends.

Short answer

It is ascertained that the liquidity position has improved somewhat from the previous year.

Step-by-step solution

Step-by-Step SolutionStep 1: Meaning of Current Assets

Current assets are those assets held by the business for less than a period of one year.

Introduction to topic:

($ in millions)	Balance September 26, 2015	Cash and equivalents as % of:	Balance September 27, 2014	Cash and equivalents as % of:
Cash and cash equivalents	$ 21,120	—	$ 13,844	—
Current assets	89,378	23.6%	68,531	20.2%
Current liabilities	80,610	26.2%	63,448	21.8%
Stockholders’ equity	119,355	17.7%	111,547	12.4%
Total assets	290,479	7.3%	231,839	6.0%

Analysis comment: 

Cash and its equivalent have increased somewhat in percentages on different bases over the underlying period. Subsequently, it is probably safe to say that Apple’s liquidity position has improved.