Refering to the Cash Flow Statement of Apple Inc., we have found that the company uses Indirect Method of preparing Cash Flow Statement where the financial statement was divided under three sections i.e:
- Cash Flow from Operating Activities
Cash Flow from Operating Activities:
Cash Flow from Investing Activities:
Cash Flow from Financing Activities:
Courtesy of a high amount of stock purchase during 2013, Apple Inc. Reported Cash outflow of $16.37 Million. Although this was marginally less than $16.98 cash outflow during 2012, but the major point to note in the cash flow from financing activities was $16.86 Million borrowing by Apple Inc. It was interesting to note that Apple Inc. which have remained debt free from so many years, finally acquired debt financing during 2013.
Summary:
The company ended 2013 with total cash inflow of $3.51 Million.
Suggestion:
Although, the company recorded high cash inflow during 2013, but this was result of Cash Inflow from Operating Activities. However, high cash inflow from Operating Activities was majorly attributed to high depreciation expense rather than Net Income. Thus, cash inflows of the company will be more sustainable if Apple Inc. focus on achieving high growth in its Net Income.
Works Cited
Yahoo Finance. (n.d.). Apple Inc: Cash Flow . Retrieved January 30, 2014, from Yahoo Finance: http://in.finance.yahoo.com/q/cf?s=AAPL&annual
