Financial Statement Essay Example | Topics and Well Written Essays - 500 words

Financial Statement - Essay ExampleMost of the cash stops seems to be generated through the investing activities as orchard apple tree heavily invested into short term securities providing it enough source of liquid asset available to maintain its liquidity throughout the year.The major source of finance cash flows arise out of the issuance of common stock so the improved performance of Apple Computers in terms of its cash flow has generally being from increase in its short term liabilities, investment into short term investments and issuance of common stock.Apple computers were being able to double their run cash flows, they mainly achieved this objective through extensive use of external short term financing besides showing an improved net income figure. Apple has been able to increase its income mainly due to its extensive selling activities as the sales for the year has shown considerable increase whereas Apple has been able to reduce its cost and increase the margins.The ite ms to be removed from the income statement in order to achieve the presistent income are gains on sell of non-current assets and restructuring costs. Net income figures are arrived after deducting and adding many sources of expenses and income only they do not necessarily directly relate to the company. For the purpose of analysis, only those items are considered which have a direct linkages in generating the income or cash flow for the firm.The basic difference between diluted and Basic EPS is the fact that diluted EPS are calcuated after netting off the impact of preference shareholding or anyother mixed bag of payments which are made before the payment of dividends to the common shareholders. The difference between the basic and diluted EPS of Apple is also due to the number of shares taken under(a) calculation. This difference is on two counts. First the net income has increased drastically