Accounting statements and ratios Essay

score statements and balances bear a massive deal of information about a companys monetary st aptitude. virtually of the concepts to be discussed in further pointedness include crosswise analysis, current ratio, debauched ratio, and cash to current liabilities ratio. A crosswise analysis is utilize to comp be selective information from two or more periods situation by side. The current ratio reveals the congeneric amount of working capital by dividing current assets by current liabilities. A quick ratio is calculated by dividing the assets by the current liabilities. This paper go away examine the pecuniary standing of orchard apple tree, INC and provide recommendations on how to better improve their financial gains in the future.orchard apple tree was founded in April of 1976 to develop and sell personalised computers. It was incorporated as apple Computer, Inc. on January 3, 1977, and was renamed as Apple Inc. on January 9, 2007 to reflect its shifted focus toward s consumer electronics. Apple Inc. is headquartered in Cupertino, California and designs, develops, and sells consumer electronics, computer softw be program, online services, and personal computers. Its best-known hardware products are the macintosh line of computers, the iPod media player, the iPhone, and the iPad. Its online services include iCloud, iTunes Store, and App Store. Its consumer software includes the OS X and iOS operational systems, the iTunes media browser, the crusade web browser, and the iLife and iWork creativity and productivity suites. Apple is the worlds second-largest information engineering company by revenue later Samsung Electronics, and the worlds third-largest mobile call up maker after Samsung and Nokia.Below is the horizontal analysis and balance sheet of Apple, INC for 2011 by means of 2013. This analysis shows that while Apple has systematically seen an increase in revenue, they have in any case seen an increase in administrative and operati ng expenses each year. Also, there has been a starchy increase in the cost of goods sold. Minimizing these cost could drive the revenues for Apple, INC even higher.Below are the liquidity ratios for Apple, INC. These ratios can be used as a tool to mildew a companys ability to pay off its short-terms debts obligations. The current ratio is computed as follows underway Ratio = Current Assets/Current Liabilities. The quick ratio officious Ratio = (Cash + Accounts Receivable) / Current Liabilities. The liquidity ratios as they apply to Apple, INC suggest that the company is worthy more liquid the longer they are operational. Liquidity is the ability to meet near-term obligations as they mature, (Bridgepoint Education, INC, 2012, p. 229). Based on the information provided, Apple, INC is doing precise well and are overly-capable of meeting their near-term financial obligations.ReferenceApple, INC company financials. (2014). Retrieved, AUG, 2014, Retrieved from http//www.nasdaq.com/ symbol/aapl/financials Principles of Accounting Volume I. (2012). San Diego, CA Bridgepoint Education, Inc