select the most recent annual report of Apple(a publicly traded company) and prepare a comprehensive (operational and financial) budget for the coming year, assuming a 20% increase in sales. Your...

1
Operational and Financial Budget of Apple
2
Introduction
Apple is a publicly traded company that serves a huge product range to customers like
mobile communication and media devices, personal computers and portable digital music
players. Along with this, it sells a variety of related software, services, and accessories,
networking solutions and third-party digital content and applications. The paper includes a
comprehensive budget of Apple for the upcoming year (Apple.com, 2017). This budget will be
ased on recent annual report on Apple that will be of fiscal year ended September 24, 2016.
Operational and Financial Budget of Apple
The operating budget is developed to access all the elements that show income of the
company such as expenses and revenues (Kaplan and Norton, 2001). Apple is a
and that has
worked for many years and has established its image effectively. Alike every business, this
and
is also facing ups and downs from one financial year to another. During 2016 the net sales of
Apple is declined by 8% or $18.1 billion dollar as compared to 2015. The reasons behind this
loss was the decrease in iPhone net sales and other foreign cu
encies weak performance in front
of U.S. dollar (Apple.com, 2017). At the same time, it can be said that the upcoming year is
needed a good hike in overall sales of the company and this can be possible with forecasting the
expenses and revenues. An increase of 20% in sales would take place when the expenses
decrease somewhere. Following are the expenses that the company had last year:
Operating Expenses for 2016
Research and Development $ 10,045
Percentage of total net sales 5%
Selling, general and administrative $ 14,194
Percentage of total net sales 7%
3
Total Operating Expenses $ 24,239
Percentage of total net sales 11%
Source: Apple.com, 2017
On the basis of above table and data, it can be assumed that the research and development
department is very important for the overall growth of the company. The company should focus
on adding new features in products and services to match the expectations of customers. On the
other side, selling, general and administrative expense could be controlled to attain the 20% hike
in sales in the upcoming year.
Other Income / (Expense), Net:
Interest and dividend income $ 3,999
Interest expenses ($ 1,456)
Other expenses, net ($ 1,195)
Total other income/(expense), net 7%
Total Operating Expenses $ 24,239
Source: Apple.com, 2017
Provision for Income Tex
Provision for income taxes $ 15, 685
Effective tax rate 25.6%
Source: Apple.com, 2017
On the basis of above data, it can be said that the increase in sales of Apple would take
effective place when above expenses decrease and the percentage of revenue increase. Adoption
of new revenue standards would be an effective way to...