A balance sheet of a company is a financial document that describes its financial status as of a date. If one carefully examines the components of the balance sheet, it is possible to get an accurate picture of the company and be able to make an informed decision about investing in shares. Apple Inc. reported accounts receivables, inventory, marketable securities and cash and cash equivalents under the current assets section of its balance sheet. The most liquid assets, with maturities less than 3 months, are cash and marketable securities. The balance sheet’s current assets are dominated by these two items. Additionally, in 2019, the company’s accounts payable decreased from $22,926 to $16,120 in 2020. Both the company’s current assets totaled $162,819 and $143,714 respectively in 2019, and 2020. The company’s total current assets did not decrease. The Covid-19 plague that struck most enterprises in 2020 may have contributed to this decrease. However, it is possible to pay off its maturing debts with the existing assets of the company. The company’s current ratios for 2019 and 2020, 1.54 and 1.36 respectively, support this assertion. Fixed assets and plant and equipment: In 2019, the net value of PPE was reported at $37,378 and $36,748 respectively. A small drop in value for PPE can be attributed to depreciation. Apple Inc. uses the straight-line method to calculate the amount of depreciation that will be applied on the PPE it purchased during the fiscal year. The company amortizes capitalized costs associated with its internal use of software over the projected useful lives.
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