Google Apple\'s actual 9/30/17 balance sheet to answer these questions 1. Using

Question

Google Apple's actual 9/30/17 balance sheet to answer these questions

1. Using Apple’s actual 9/30/17 account balances shown in the balance sheet to answer this question, what would be the new balance in the Cash Account and Total Assets, respectively, if Apple had the following two additional transactions?

The Apple Store purchases new Iphones for $1,000,000,000 on acount to sell to customers at a later date.

Apple issues $1,000,000,000 in new stock to investors to raise cash to open new stores in the next accounting.

a. $20,289,000,000 cash account and $128,645,000,000 Total Assets

b. $18,289,000,000 cash account and $373,319,000,000 Total Assets

c. $22,289,000,000 cash account and $375,319,000,000 Total Assets

2. Using Apple’s actual 9/30/17 consolidated statement of operations to answer this question, what would be the new ending balance (total) for net sales account if Apple had $1,000,000,000 more in revenue?

a. $48,351,000,000

b. $61,344,000,000

c. $228,234,000,000

d. $230,234,000,000

Explanation / Answer

1. Answer is option A $20,289,000,000 cash account and $128,645,000,000 Total Assets

Before adjustment cash balance is 20289000000 is purchase will increase inventory but will not affect cash plus new stock is raised for next accounting period so it will not affect this year cash balance. So the cash balance will remain the same.

2. Answer is option D $230,234,000,000

Before additional revenue, sales = 229234000000

Additional revenue = 1,000,000,000

Ending balance of net sales = 230234000000

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