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made a profit or not.

Earnings per share EPS

Earnings per share tell the share holder how much would have been received per share if shares were distributed. The EPS is calculated by net income divided by the outstanding shares of the company.

Cash Flow Statement

The cash flow statement identifies if the company is generating cash to pay for expenses and purchase assets. The cash flow statement is divided into three main parts to include: operating activities, investing activities, and financial activities. The operating activities part of the cash flow statement observes the company in net income or loss. The investment activities section indicates if there has been an inflow or out flow of investment activities. The purchasing of assets would be considered an outflow. The selling of assets would be considered an inflow of cash. The Financial activities section of the cash flow statement show all the activities from buying or selling stocks and bonds. Paying off bank loans or borrowing from banks will show up as financial activity in the financial activities section.

When looking at all the financial statements and comparing them an investor can get a better idea of the financial health of the organization. The investor can also read the management discussion and analysis for the company which will give the managements perspective on what each financial statement represents. The investor needs to be vigilant and search for the information needed to make an informed investment decision.

Apple financial Statement review 2011

When looking at the financial statements of Apple has done very well and has some years with record breaking performance. According to "Forbes" (2011), Apple made 28.27 billion in the fourth quarter of 2011 which is considerably more than the 26.74 billion that was made in 2010. Apples total current assets are 44.99 billion which is expected to be liquidated in 2012. The company's total assets equal to 116.37 billion and Apples liabilities are 39.76 billion. Apple's operating income is 8.71 billion and net income is 6.62 billion. In 2010 the net income was 6 billion dollars which is lower than the 6.62 billion made this year so the company is doing better than last year. The net cash from operation activities 37.53 billion and the net cash from investment activities equal 40.42 billion. Currently Apple is financing 1.44 billion and besides this Apple is virtually debt free. The information contained in Apples financial statements doesn't concern me and I believe that Apple is a good candidate for investment. The thing that does concern me is that Apple has done so well for so long that I believe that Apple is overdue for a loss. This will in return create an opportunity for investors to reinvest in Apple. Management can

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