The publicly held company selected to use as the basis for this paper is Apple Inc. Apple Inc. designs, manufactures and markets mobile communication and media devices, personal computers, and portable digital music players, and sells a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications. The Company’s business strategy leverages its unique ability to design and develop its own operating systems, hardware, application software, and services to provide its customers new products and solutions with superior ease-of-use, seamless integration, and innovative design. The Company believes continual investment in research and development and marketing and advertising is critical to the development and sale of innovative products and technologies. (Form 10-K, 2011, p. 1) Apple’s Cash and Cash Equivalents
According to CONSOLIDATED BALANCE SHEETS of 2011 form 10-K of Apple Inc., cash and cash equivalents item is $9,815 million, and total assets are $116,371 million, so cash and cash equivalents make up a portion of 8.4% of total assets of Apple Inc. The cash equivalents disclosure, which locates in Note 1- Summary of Significant Accounting Policies, indicates that “all highly liquid investments with maturities of three months or less at the date of purchase are classified as cash equivalents.” (Form 10-K, 2011, p. 52) In Note 2- Financial Instruments, Apple Inc. discloses the components of their cash and cash equivalents including: Cash
Money market funds
U.S. Treasury securities
U.S. agency securities
Non-U.S. government securities
Certificates of deposit and time deposits
Apple’s receivables (less allowances of $53 and $55, respectively) in 2011 are $5,369 million. Total current receivables make up 4.6 percent of total assets for the year. Allowance...