Essay Example: Merchandising Operations and Inventory in Apple Inc.

Merchandising operations in business ventures involve all the transactions, such as sales, reimbursements, and collections, among other activities. In essence, selling activities ensure the enhancement of cash flow in a company (Weygandt, Kimmel & Kieso, 2019). Economists define inventory as all goods and services a company has in its possession, such as current assets, goods in stock, and raw materials, among others. This paper, therefore, intends to briefly examine the cash flow at Apple Inc. and its balance sheet.

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Apple Inc. is a multinational store that is involved in electronic and telecommunications sales of products such as computer software and hardware, consumer electronics, and distributions, among other provisions. The company is engaged in the sales of products like iPhone, iPad, Apple Watch, and Apple and third-party software, among other services. Apple Inc. has returned about 300 billion dollars as dividends and shares resales to its shareholders, recording among the best in the industry (Weygandt, Kimmel & Kieso, 2019). Facts indicate that the company's capital return has increased for the last two years.

Financial experts assert that Apple Inc. increases funding of its programs by raising its debts through its efforts to generate capital from its cash holdings. The repurchase of common stock and dividends have improved since 2015. Other statistics indicate that Apple Inc. continues to reduce its share count by enhancing its shareholder's earnings per share (EPS). The company manages its cash flows through return investments from its shareholders, more lending to invest in new high-tech ventures, and innovative and creative marketing strategies that boost their profit margins (Weygandt, Kimmel & Kieso, 2019).

Apple Inc. is one of the largest multinational companies across the world, with the highest number of employees, profit margins, and social responsibilities. According to Hernandez-Alvarez, Hernandez & Yoo (2019), the sales at the Apple Company will probably increase by 2020. Financial experts project an estimate of USD 13.14 million in book value per share and an estimated cash flow per share of 19.24 million USD, which indicates that the company's debt management is efficient (Hernandez-Alvarez, Hernandez & Yoo, 2019). According to the tables (values are in millions of US dollars) attached in this paper, the operating profit, sales, and margin are likely to increase, which makes the company's inventory and merchandising operations feasible. Other financial reporting provided in the tables below highlights a vibrant company whose operatives are sustainable and can maintain its operating debts.

References

Hernandez-Alvarez, M., Hernandez, E. A. T., & Yoo, S. G. (2019, February). Stock Market Data Prediction Using Machine Learning Techniques. In International Conference on Information Technology & Systems (pp. 539-547). Springer, Cham. Retrieved from https://link.springer.com/chapter/10.1007/978-3-030-11890-7_52

Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2019). Financial accounting. Wiley. Retrieved from https://books.google.com/books?hl=en&lr=&id=jmfDDwAAQBAJ&oi=fnd&pg=PA2&dq=Merchandising+operations+and+inventory+in+Apple+Inc.&ots=1HzRN2qkrk&sig=9sSVeNlFvOTEKCzEJisRu6U43zk