AppleInc., located in Cupertino, California, is what I chose to do my CorporateProfile on. California is the state of incorporation for Apple which is alsowhere the company was founded 1976. Apple istraded using the NasdaqStock Exchange under the name “AAPL”. Thenature of the company, Apple, according to their 10-K form, is to engage in the manufacture, design, andmarketing of mobile communication (iPhone), media devices (IPad), personalcomputers (MacBook), and portable digital music players (iPod) . Pruducts suchas the IPod, IPad, IPhone, and MacBook allows Apple to achieve this goal. Thefiscal year for Apple ended September 30, 2017, and asof that date Apple had $128.6B in current assets, a net income for the year of$47.
57B, and basic earnings per share of $9.27. Apple computes its depreciationusing straight-line method divided by the estimated life expectancy, forbuildings either 30 years or the life remaining on the building whichever isless; machinery and equipment has between one and five years, including machinetooling and manufacturing process equipment; and either the lease term oruseful life for leasehold improvements whichever is less. Inventories are quoted at the less of cost,using the first-in, first-out method, and the realizable value upon the sale.Any changes to bring down the cost of inventories to their realizable valueupon sale are added to earnings in the current period. Apple only has common stock, with 12,600,000shares authorized, 5,336,166 outstanding shares, and 5,126,201 shares issued.On Friday December 1, 2017, the price of stock at close was $171.05.
In the last 12months Apple stock has been as high as $174.97 and as low as $113.95. Theannual report states that they have paid $12.56Bin dividendsfor the year. The biggest thing I discovered during this project was theinventory method Apple used. I did not know Apple’s inventory methods, but Ifound it pretty interesting because it uses the supply curves I learned ineconomics. If I had $10,000 I wouldwithout a doubt invest into Apple’s shares.
The last few years the company has been growing and continues to grow. Apple has a return on investment above 12% and it is predicted torise. I also discovered Applewill probably be the first company to reach a 1 trillion dollars market cappassing $840 billion as of September 30th, 2017, With the release ofthe iPhone X and Apple’s plan for next year, they are just inches away.