The statement of cash flows for Apple Inc. contained the following information (in millions) for
the year ended September 25, 2010:
For each of the four current asset and liability accounts listed in the operating activities section of
the statement of cash flows, determine whether the following accounts increased or decreased
during the period:
Accounts:
Accounts recievable_________
Inventories____________
Accounts payable_______
Unearned revenue______
What were the changes?
The statement of cash flows for Apple Inc. contained the following information (in millions) for
the year ended September 25, 2010:
Solution
1) Accounts receivable - Increased. Cash outflow. Therefore, Accounts receivable balance at the
year end is more when compared to opening balance.
2) Inventories - Increased.Cash outflow. Apple Inc. inventory stock is more at the year end than
opening balance.
3) Accounts payable - decreased. Cash Inflow. Accounts payable were less at the year end as
compared to opening balance.
4) Unearned revenue - decreased. Cash inflow. Unearned revenue was less at the year end as
compared to opening balance.