Share
Explore BrainMass

Apple Inc.

I have been up all night trying to work on this and I am frustrated as I need this completed ASAP. I have to write a paper on Apple Inc. After reviewing Apple's most recent 2-3 years financial reports (balance sheet,statements of cash flow, managements comments, and footnotes to the financial
statements), and assuming next year's forecasted
revenues will increase by 20%, I have to do the following:

1) Write 250 words about my assumptions regarding financial line items in the Pro Forma.

2) Write 250 words regarding the impact of revenue increase on the working capital policy

Be sure to properly cite your references in your paper.

Solution Preview

1) Write 250 words about my assumptions regarding financial line items in the Pro Forma.

Regarding your assumption about 20% increased in revenue for the next fiscal year, it is quite achievable as the company has already shown a growth of over 30% in top line revenues in fiscal year ended September 27, 2008. Thus, given the significant growth arising out of the retail operations of the company due to opening of new stores and increase in sales of existing stores, the 20 percent growth rate in revenues looks achievable.

However, to achieve this growth rate, the company will need to invest heavily in terms of planned expansion in retail operations. Further, given the recession in the company's major market, ie, USA and rising competition, the company will need to invest heavily in advertising and promotion, especially in non-USA markets. All these factors will require significant cash outflow. As company mentioned in its annual report that Expansion of the Retail segment ...

Solution Summary

Write 250 words about my assumptions regarding financial line items in the Pro Forma.

$2.19