Instructions for accessing and using the company’s complete annual report, including the notes to the financial statements, are also provided in Appendix A.
Apple’s financial statements contain the following selected accounts, stated in millions of dollars.
Property, Plant, and Equipment
Cash and cash Equivalents
Research and Development Expense
a) Answer the following questions.
1. What is the increase and decrease side for each account?
2. What is the normal balance for each account
b) Identify the probable other account in the transaction and the effect on that account when:
1. Accounts Receivable is decreased
2. Accounts Payable is decreased
3. Inventories and increased
C) Identify the other account(s) that ordinarily would be involved when:
1. Research and Development Expense is increased.
2. Property Plant, and Equipment is increased.