Essay on Executive Summary for Apple, Inc.

Words: 1211
Pages: 5

Apple Inc.
Kenya Jordan, Ashley Kirschmann, Etta Stewart, Leah Monego, Rodrigo Ramos
March 27, 2011
Glenn Purcell

Executive Summary for Apple, Inc. Company History Apple Inc. is a corporation that designs and manufactures computer hardware, software and other consumer electronic products. The company is known for the Macintosh personal computers, iTunes media applications and the iPod personal music players. Apple was founded in April 1976 by Steven Wozniak and Steve Jobs, both college dropouts. In 1976, Wozniak and Jobs created the Apple I computer which did not have a keyboard or power supply for a computer hobbyist club. Later that summer Wozniak started his development of the Apple II, which
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Apple reports having $27,392 million worth of liabilities in the year ending 2010, and $15,861 million for the year ending 2009. Revenue Apple is known as a leader in technology with the production and sale of its products such as the Mac computer, the iPhone, and most recently, the iPad. Apple recognizes revenue for the sale of its products when the products are ordered (purchased), shipped, priced, and collection is noted as likely to occur. When customers order products online, Apple defers recognizing revenue until the customer has received the product because Apple is still at risk of loss during shipping. If a customer enters a prepaid agreement for devices, Apple will defer recording and recognizing revenue. In February 2010, reported that Apple closed 2009 with nearly $40B in the bank. Revenue is listed in the form of cash and marketable securities, which accounted for a little over 61% of Apple’s total current assets-at that time ( 2009). Marketable securities are either short-term or long-term based on the underlying contract maturity date. Short-term securities mature in less than 12 months. Long-term securities reach maturity in one to five years ( Net Income vs. Liabilities Net income for Apple, Inc. has increased every year for the last three years. In 2008, net income was $6,119 million, 2009 net