Rock based compensation expense jeferred income tax

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:::>rock-based compensation expense . :Jeferred income tax expense . ..oss on disposition of property, plant and equipment . es in operating assets and liabilities: ease in accounts receivable ....................................... ............. ease in inventories ........................ ....................... ...... ..... ease in vendor non-trade receivables. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .... ease in other current assets ................................. ................... b:rease in other assets '.' .• .......... ease in accounts payable. . . . . . . . . . . . . . . . . . . . . .. . .. . .................. •...• ..... ltcfease in deferred revenue '.' . . . . . . . . . . . . .. .. . ...... ..... :ncrease in other liabilities . Cash generated by operating activities . 'ng activities Purchases of marketable securities . Proceeds from maturities of marketable securities . rroceeds from sales of marketable securities . ?urchases of other long-term investments . ?ayments made in connection with business acquisitions, net of cash acquired . ?ayments for acquisition of property, plant and equipment. . ?ayments for acquisition of intangible assets . Other . Cash used in investing activities . cing activities Proceeds from issuance of common stock . Excess tax benefits from stock-based compensation . Taxes paid related to net share settlement of equity awards . Cash generated by financing activities . ase/(decrease) in cash and cash equivalents .................................... •.. uash and cash equivalents, beginning of the year ..... ................................... ;.;ash and cash equivalents, end of the year '.' .• ............................. 14,013 1,027 879 1,440 24 (2,142) (596) (2,718) (1,514) (120) 6,307 1,217 778 18,595 (57,793) 24,930 21,788 (18) (638) (2,005) (116) (2) (13,854) 912 751 (406) 1,257 5,998 5,263 $11,261
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--- 2-17 Module 2 I Overview of Business Activities and Financial Statements depreciation, a noncash expense in the income statement, and other noncash expenses, together with year-over-year changes in operating assets and liabilities. Apple reports a net cash outflow of $13,854 million for investing activities, mainly for invest- ments in marketable securities. Apple also generated $1,257 million from financing activities, mainly cash received when employees exercised their options to purchase common stock. Overall, Apple's cash flow picture is strong. It is generating cash from operating activities and the sale of stock to employees, and is investing excess cash in marketable securities to ensure future liquidity. Cash Flow Computations It is sometimes difficult to understand why certain accounts are added to and subtracted from net income to yield net cash flows from operating activities. It often takes more than one pass through this section to grasp how this part of the cash flow statement is constructed. A key to understanding these computations is to remember that under accrual accounting, revenues are recognized when earned and expenses when incurred. This recognition policy does not necessarily coincide with the receipt or payment of cash. The top line (net income) of the operating section of the statement of cash flows represents net (accrual) income under GAAP. The bottom line (net cash flows from operating activities) is the cashprofit the company would have reported had it constructed its income statement on a cash basis rather than an accrual basis.
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