Chapter 12 Academic Discussion Post Reply

Hi Class,

When I Looked at 10-K of Apple Inc, The Latest annual report for the fiscal year ended September 2022,

Regarding the income statements, the report shows that Apple generated net sales of 394,328 in Millions in fiscal year 2022, increased 8% or $28.5 billion during 2022 compared to 2021. The company’s gross margin was 56.69%, which was lower than the 58.22% gross margin reported in the prior year. Apple’s operating income increased by 9.63% to 119,437 in millions while its net income was $99,803 in millions, up from $94,680 in millions in the previous year.

In terms of discontinued operations, Apple did not report any during fiscal year 2022. However, the company did report certain extraordinary items that affected its income statement. Specifically, Apple Inc. is subject to taxation and files income tax returns in the U.S. federal jurisdiction and many state and foreign jurisdictions. As of September 24, 2022, the total amount of gross unrecognized tax benefits was $16.8 billion, of which $8.0 billion, if recognized, would impact Apple Inc.’s effective tax rate. In accounting for uncertain tax positions, Apple Inc. uses significant judgment in the interpretation and application of complex domestic and international tax laws.

Thank You.