Accounting statements and ratios Essay

Accounting statements and dimensions post a great deal of information about a friendships financial stability. Some of the concepts to be discussed in further detail include horizontal analysis, current symmetry, quick ratio, and cash to current liabilities ratio. A horizontal analysis is used to compare data from two or more periods side by side. The current ratio reveals the relative union of working capital by dividing current assets by current liabilities. A quick ratio is calculated by dividing the assets by the current liabilities. This newsprint will examine the financial standing of orchard apple tree, INC and provide recommendations on how to break off improve their financial gains in the future.Apple was founded in April of 1976 to develop and dish out personal data processors. 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 towards consumer electronics. Apple Inc. is hea dquartered in Cupertino, California and designs, develops, and sells consumer electronics, computer software, online go, and personal computers. Its best-known hardware products are the Mac 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 operate systems, the iTunes media browser, the Safari wind vane browser, and the iLife and iWork creativity and productivity suites. Apple is the worlds second-largest information engineering company by revenue after Samsung Electronics, and the worlds third-largest industrious phone maker after Samsung and Nokia.Below is the horizontal analysis and difference sheet of Apple, INC for 2011 through 2013. This analysis shows that while Apple has consistently seen an increment in revenue, they have also seen an increase in administrative and operating expenses each year. Also, there has been a steady increase in the comprise of goods sold. Minimizing these costs could drive the revenues for Apple, INC even higher.Below are the liquidity ratios for Apple, INC. These ratios sewer be used as a tool to determine a companys ability to pay off its short-terms debts obligations. The current ratio is computed as follows Current Ratio = Current Assets/Current Liabilities. The quick ratio Quick Ratio = (Cash + Accounts Receivable) / Current Liabilities. The liquidity ratios as they apply to Apple, INC bespeak that the company is becoming more liquid the longer they are operational. liquidness 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/symbolic representation/aapl/financials Principles of Accountin g Volume I. (2012). San Diego, CA Bridgepoint Education, Inc