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Let's start with the balance sheet.
The balance sheet gives us the summary of
the financial position for a company at a particular point in time.
It's really composed of three things: assets,
liabilities, and owner's equity,
sometimes called shareholder's equity.
Assets are everything the company owns;
it's their cash, their inventory,
their land, their buildings, equipment,
as well as accounts receivable,
which is money owed to the firm,
and then intangible assets,
things like their brand name,
patents they might hold, etc.
Liabilities are everything that the company owes.
That's the accounts payable notes,
payable mortgage payments, things like that.
The difference between these two, assets minus liabilities
is the net worth of the company essentially,
it's the net assets after we've paid off all of our debts.
This is an example of Apple's balance sheet.
We start at the top with the assets.
This shows us all of Apple's different assets.
So we see, over time Apple's assets have grown.
This balance sheet runs from 2013-2017.
So, we have Apple's assets at the end of each of their fiscal years.
September 28th, 2013, September 27th, 2014, etc.
Basically the end of September each year for a five-year period,
we see their cash generally is pretty sizeable.
All of these figures are in millions of dollars.
So, at the end of the third quarter of 2013,
Apple had $8.7 billion in cash.
They also had another $5.5 billion in cash equivalents,
and then they had $ 26 billion 287 million in short-term investments.
So, that $26 billion 287 million added to
the cash positions give us total cash and short-term investments, about $40.5 billion.
So, we see Apple's total current assets at the end of this period are 73 billion.