Apple Inc is a public company operating in the television and radio and TV broadcasting and the main one being manufacturing of wireless communications equipment. Apple's net change in the cash flows of the year ending September 28, 2013 was $3,513 Million. 377.3% growth was a growth of over thrice the change in cash of the year ending September 29, 2012 which stood at only $931 Million. In cash flow from the operating activities, in the year ending September 28, 2013, Apple generated $53.7 Billion from its major business operations. This is a good sign for its investors since, Investors prefers business entities with operation cash flows reading positive. This is where Apple Inc. gets most of its money.
In the cash flow from the investing activities, in the year ending September 28, 2013, Apple used $33,774 Million for investing activities and also in the same ending year, Apple used $16,379 Million for financing activities. This indicates where Apple is using its cash to i.e. where the money is going to. For Apple to improve its cash position it will need to reduce the cost on net borrowings. Reducing these debts will see the cash flow from the financial activity reduce and an increase in change in cash flow and net income.
A Cash Flow statement normally shows the liquidity state of the organization or any business entity. The lost important elements contained in the Cash Flow Statement are the tracking of how money gets in and leaves the company. These elements are important as they show how the business is performing the recurring expenses so that forecasting can be easily achieved. Investor would also want to know how their invested capital has been used and if they should still stick to the business entity according to how the Cash Flow reflects.
Works Cited
Rothbort, Scott. How to Read a Cash Flow Statement. 21 September 2007. 18 April 2014 <http://www.thestreet.com/story/10380734/1/how-to-read-a-cash-flow-statement.html>.
Woodman, Craig. What Is the Difference Between a Balance Sheet & Cash Flow Statements? 24 March 2013. 18 April 2014 <http://smallbusiness.chron.com/difference-between-balance-sheet-cash-flow-statements-24327.html>.
