studying how financial statements interconnect - why does 10k not reconcile?
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I'm trying to reverse engineer Apple's CFS from its BS/IS using their last 10K (issued 10/29). AR was 26,278 for Sep21 and 16,120 for Sep20 resulting in a change of 10,158 (cash outflow). However, AR under "changes in operating assets and liabilities" on the CFS is slightly less at 10,125. Why does the BS not reconcile with the CFS entry? Is it possible to perfectly build the CFS from the BS/IS from a 10K?
Balance sheet link: https://www.sec.gov/Archives/edgar/data/320193/00…
Cash flow statement link: https://www.sec.gov/Archives/edgar/data/320193/00…
bump
For one, acquisitions. If you acquire a company with $100 of accounts receivable on their balance sheet on the last day of the quarter, that doesn't flow through the working capital line item but you'll see the incremental $100 in a/r on your balance sheet.
Bad debt and foreign currency translation can also cause discrepancies. It's rarely going to perfectly reconcile for larger companies.
Lots of intricacies in large-cap financial statements. As above said, a lot won't perfectly reconcile. If you're set on looking at their financials, try looking at the notes. That's the meat of the statements and will give you an intro to the complexity of real-life financials.
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