PURPOSE OF ASSIGNMENT
Much like the income statement assignment and the balance sheet, the purpose of this assignment is to apply the concepts of the cash flow statement to calculate year-over-year data and analyze the factors that influence the change. By applying the concepts of the cash flow statement to the same set of financials as the income statement assignment and balance sheet, students will gain additional insights and confidence in their financial acumen. With this increased level of knowledge about each component (operations, investing, financing) of the cash flow statement, and relating each to an organization’s life cycle and business model, HR professionals will gain the respect of their cross-functional peers and become valued business partners.
ASSIGNMENT INSTRUCTIONS
The assignment this week is to calculate and analyze a Cash Flow Statement
If you have not done the Cash Flow exercise now would be a good time to do it as it will greatly help you with the assignment. The assignment specifics are similar to the other financial exercises in Appendix B of your textbook.
The assignment has two parts. Both parts involve using the Cash Flow Statement from Apple. See attachment.
Apple+Financials.pdf
Part one.
Using the Apple Cash Flow Statement, perform the following calculations. Create a table or spreadsheet for your answers. Show the formulas you used to make your calculations as well as the results.
1. List the cash provided by operations, investing and financing for 2013, 2012 and 2011
2. Calculate the percentage change in each area for 2012 to 2013 and 2011 to 2012
Part two
Based on your results, answer the following two questions.
What trends do you seed by looking at the Cash Flow Statement itself, the raw numbers? What are they telling you?
Look at your percent of and percent change results. What are they telling you?
Note: Please use a formal cover page for this assignment. Grading has been lenient on this the first few weeks, but there will now be deductions in this area.
The paper is expected to contain the following:
Calculations. Show formulas and results. Grading will be based using the correct formula and correct results. Note: the results of your calculations on this assignment might seem odd, but trust your math skills.
Analysis. Restate the questions and your responses. Grading will be based on your level of insight. There should be about two paragraphs per answer. Remember to use at least 3 sources, with appropriate citations.
Your submission should be in MS Word. If you are using a spreadsheet, embed it in the document, if possible, or include as a separate attachment.
