Reference no: EM132651131
Question - Analysis of Warranty Footnote
Warranty Costs - The Company accrues the estimated cost of warranties in the period the related revenue is recognized based on historical and projected warranty claim rates, historical and projected cost per claim and knowledge of specific product failures outside of the Company's typical experience. The Company regularly reviews these estimates and adjusts the amounts as necessary. If actual product failure rates or repair costs differ from estimates, revisions to the estimated warranty liabilities would be required and could materially affect the Company's financial condition and operating results.
Accrued Warranty and Indemnification - The following table shows changes in the Company's accrued warranties and related costs for 2018, 2017 and 2016 (in millions):
|
|
2018
|
2017
|
2016
|
|
Beginning accrued warranty and related costs
|
$3,834
|
$3,702
|
$4,780
|
|
Cost of warranty claims
|
(4,115)
|
(4,322)
|
(4,663)
|
|
Accruals for product warranty
|
3,973
|
4,454
|
3,585
|
|
Ending accrued warranty and related costs
|
$3,692
|
$3,834
|
$3,702
|
Revenue for 2018 and 2017 was $265,595 and $229,234, respectively.
Required -
1. How much warranty expense did Apple recognize in 2018? What effect did this have on the BSE?
2. What was the cost to Apple to fufill warranties during 2018? What effect did this have on the BSE?
3. What % of revenue did Apple use to record warranty expense during 2018 and 2017?
4. What could explain the difference between the % used between the two years?
|
What is jack c profit or loss over the year
: One-year interest rates are 2% in the U.S. and 6% in Canada. "Jack the carry trader" borrows $10,000,000 to execute a carry trade.
|
|
What is insider trading
: Ques 1: Financial management is the pivotal of all management system. Explain with examples
|
|
Create journal entries to recordpurchase of the inventory
: Create journal entries to record the purchase of the inventory, accrual of interest on Dec 31, 2019 and the final repayment of the note at maturity.
|
|
Annual installments or the up-front payment
: How would you decide between the annual installments or the up-front payment?
|
|
Question - Analysis of Warranty Footnote
: Question - Analysis of Warranty Footnote - How much warranty expense did Apple recognize in 2018? What effect did this have on the BSE
|
|
What is the chicago style citation for the rio tinto
: What is the "Chicago style" citation for the Rio Tinto 2019 annual report page
|
|
Calculate the size of the level quarterly repayment
: Geoffrey decides not to buy the car mentioned earlier. Instead, he is now considering a food delivery service "You, bars, meats"
|
|
Determine the computation of the total shareholder equity
: Determine the computation of the total shareholder's equity at December 31, 2016. Present a detailed computation of each element of shareholder's equity.
|
|
Prepare the journal entry to record the initial transaction
: Prepare the journal entry (if one is required) to record the initial transaction and then prepare the adjusting entry, if any, required on September 30
|