Question

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

2. For fiscal years ended September 26, 2015, and September 27, 2014, use the information in the statement of cash flows to determine the percent change (rounded to one decimal) between the beginning and ending year amounts of cash and cash equivalents.

Short answer

Percentage change in 2014 is 29.5% decrease and in 2015 is 85.6% increase.

Step-by-step solution

Step-by-Step SolutionStep 1: Meaning of Cash and Cash Equivalents

Cash and cash equivalents are a part of the company's balance sheet, and it includes the cash and those assets that can be easily convertible into cash.

The statement of cash flows for year ended September 26, 2015 ($ million):

Cash and equivalents, beginning-year (A)	Cash and equivalents, year-end (B)	Percent change (B-A)/A
$ 835,546	$1,550,861	85.6% increase

The statement of cash flows for year ended September 27, 2014 ($ million):

Cash and equivalents, beginning-year (A)	Cash and equivalents, year-end (B)	Percent change (B-A)/A
$ 1,184,398	$ 835,546	29.5% decrease