http://www.apple.com/ca/pr/library/2010/10/18results.html
Summary:
Apple recently released financial results for its fourth quarter of the 2010 fiscal period. With high results, the company had recorded revenues of $20.34 billion and a net quarterly profit of $4.31 billion ($4.64 per diluted share). Last year’s quarter results show that revenue had increased significantly comparing $12.21 billion and net quarterly profit of $2.53 billion ($2.77 per diluted share). Apples gross margin was 36.9 percent compared to last year’s 41.8 percent. In addition, 57 percent of this quarter’s revenue came from international sales. With increases happening in all parts of the company, sales of 3.89 million Macs occurred during the quarter making it a 27 percent unit increase over the year. Apple had also sold 14.1 million iPhones in the recent quarter making it a 91 percent unit growth during the past year. With further information it is noted that 9.05 million iPods were also sold during the quarter which had represented an 11 percent unit decline from last year. The new iPad had made an astonishing 4.19 million sold during the quarter.
Connection:
Chapter three and this article had strong ties between gross margin percentages, closing entries and the accounting cycle. The gross margin was calculated through a series of reductions and as stated in the article, Apple’s gross margin decreased from last year’s amount. Through a series of steps including steps in the accounting cycle, Apple was able to generate their results. The accounting cycle helped to make financial statements that have allowed companies to compare results from year to year. After Apples fourth quarter, closing entries were made in the journal to allow a final sum up of the quarter’s revenue. Temporary accounts were transferred to permanent accounts and adjusted entries were made before closing the year 2010 fiscal.
Reflection:
After years of building up reputation, Apple has finally proved itself superior among electronic devices. Apple has been delivering great products including the new iPad, the iPhone 4 and the soon to come, iPhone 5. I am not surprised that Apple has had increased net profit over the past years. Their continuation to grab consumer’s attentions is increasing. Apple products continue to dominate the market with increasingly high demands through all their products except for possibly their iPod product. The iPod has been around for a long time which defeats itself when Apple had come out with products that are not only phones but also media players. All in all, I am certain that Apple Inc. will continue to amaze everyone with new products and also generate more revenue in the years to come.
