1. We first accounted for Apple’s cash in early 2014, and again later in the year. Since then, investor and analyst Eric Jackson questioned the company’s entire share repurchase and dividend program, instead suggesting the company should have spent the cash on M&A (Tesla, Twitter, Pinterest) and R&D (batteries, iCloud). As Apple announces its first quarter results, we again update our accounting.
   

Cash as of 12/27/14: $179 billion, wow.

Debt as of 12/27/14: $36 billion

Net cash as of 12/27/14: $143 billion

Operating cash flow generated, CY2014: $71 billion

Forecast net operating cash flow, CY2015: How about another $70 billion?

Expected net cash as of 12/31/15 before share repurchases and dividends: $213 billion

Share repurchase authorized through 12/31/15: $90 billion

Shares repurchased through 12/27/14: $73 billion

Share repurchase remaining through 12/31/15: $17 billion

Expected dividend during CY2015: $12 billion, or $3 billion per quarter, or $1.80/share for 6 billion shares for a 1.5% dividend yield, meh

Forecast net cash through 12/31/15, after expected share repurchase and dividends: $184 billion

Provision for operational expense variability: $32 billion (20% downside variability in $40 billion in quarterly COGS and opex, or $8 billion per quarter, for four quarters through 12/31/15, without offsetting product price increases)

Net cash remaining for investment, after variability provision: $152 billion

Capex: $3.2 billion for QE 12/27/14, how about $15 billion annualized?

Interest and dividend income: $523 million for QE 12/27/14, or $2.1 billion annualized, with significant interest rate derivatives that could change that figure, and which implies a 1.4% rate of return, which while great as corporate treasury goes, pales in comparison to what investors could do investing in their own portfolios

Total Apple acquisitions since 1988, including Beats: $6 billion

Tesla, Twitter, and Pinterest purchase price: $100 billion, at Jackson’s estimated valuation, although we don’t know what we get other than Elon Musk, millions of new Twitter bot accounts, and a much smaller version of Google

Battery and iCloud R&D cost: $20 billion, at Jackson’s generous estimate

Investors who think Apple should spend $100 billion on speculative M&A with highly uncertain benefit: Eric Jackson

Investors who think Apple should spend $100 billion on further share repurchases, leaving $52 billion for R&D, capex, and whatever other deals make sense: many, many others