Accounting
Field: Business Finance – Accounting
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Accounting
At this point you have examined three years of financial statements for your firm. You have also determined their sustainable growth rate as well. You have also learned about various financial ratios. Use this spreadsheet for the information needed to complete this assignment. In a comprehensive summary of your firm, provide the following financial information for your firm for the last two years.
· Revenue
· Net Income
· Profitability Ratios
· Gross Profit Margin
· Net Profit Margin
· Return on Assets
· Liquidity Ratios
· Current Ratio
· Market Ratios
· Earnings per Share
· Price to Earnings Ratio
· Debt measures
· Debt to Asset Ratio
· Explain what each ratio and piece of financial data means and explain the trends in each; are they increasing or decreasing and is this trend positive or negative for the firm and why?
· Using the information from IP4, summarize an explanation of the Sustainable Growth Rate for your firm and what it means for your company (do NOT copy and paste the information from IP4! This is not what the assignment requires)
· Using the financial data, summarize and reflect on the future financial health of your firm.
Accounting
AAPL Income Statement
APPLE INC (AAPL) CashFlowFlag INCOME STATEMENT APPLE INC (AAPL) CashFlowFlag INCOME STATEMENT
Fiscal year ends in September. USD in millions except per share data. 9/24/16 9/26/15 9/27/14 9/28/13
Revenue $ 215,639 $ 233,715 $ 182,795 $ 170,910
Cost of revenue $ 131,376 $ 140,089 $ 112,258 $ 106,606
Gross profit $ 84,263 $ 93,626 $ 70,537 $ 64,304
Operating expenses
Research and development $ 10,045 $ 8,067 $ 6,041 $ 4,475
Sales, General and administrative $ 14,194 $ 14,329 $ 11,993 $ 10,830
Total operating expenses $ 24,239 $ 22,396 $ 18,034 $ 15,305
Operating income $ 60,024 $ 71,230 $ 52,503 $ 48,999
Interest Expense $ 1,456 $ 733 $ 384 $ 136
Other income (expense) $ 2,804 $ 2,018 $ 1,364 $ 1,292
Income before taxes $ 61,372 $ 72,515 $ 53,483 $ 50,155
Provision for income taxes $ 15,685 $ 19,121 $ 13,973 $ 13,118
Net income from continuing operations $ 45,687 $ 53,394 $ 39,510 $ 37,037
Net income $ 45,687 $ 53,394 $ 39,510 $ 37,037
Net income available to common shareholders $ 45,687 $ 53,394 $ 39,510 $ 37,037
AAPL Balance Sheet
APPLE INC (AAPL) CashFlowFlag BALANCE SHEET
Fiscal year ends in September. USD in millions except per share data. 9/24/16 9/26/15 9/27/14 9/28/13
Assets
Current assets
Cash
Cash and cash equivalents $ 20,484 $ 21,120 $ 13,844 $ 14,259
Short-term investments $ 46,671 $ 20,481 $ 11,233 $ 26,287
Total cash $ 67,155 $ 41,601 $ 25,077 $ 40,546
Receivables $ 15,754 $ 16,849 $ 17,460 $ 13,102
Inventories $ 2,132 $ 2,349 $ 2,111 $ 1,764
Deferred income taxes $ – 0 $ 5,546 $ 4,318 $ 3,453
Other current assets $ 21,828 $ 23,033 $ 19,565 $ 14,421
Total current assets $ 106,869 $ 89,378 $ 68,531 $ 73,286
Non-current assets
Property, plant and equipment
Gross property, plant and equipment $ 61,245 $ 49,257 $ 39,015 $ 28,519
Accumulated Depreciation $ (34,235) $ (26,786) $ (18,391) $ (11,922)
Net property, plant and equipment $ 27,010 $ 22,471 $ 20,624 $ 16,597
Equity and other investments $ 170,430 $ 164,065 $ 130,162 $ 106,215
Goodwill $ 5,414 $ 5,116 $ 4,616 $ 1,577
Intangible assets $ 3,206 $ 3,893 $ 4,142 $ 4,179
Other long-term assets $ 8,757 $ 5,556 $ 3,764 $ 5,146
Total non-current assets $ 214,817 $ 201,101 $ 163,308 $ 133,714
Total assets $ 321,686 $ 290,479 $ 231,839 $ 207,000
Liabilities and stockholders’ equity
Liabilities
Current liabilities
Short-term debt $ 11,605 $ 10,999 $ 6,308 $ – 0
Accounts payable $ 37,294 $ 35,490 $ 30,196 $ 22,367
Taxes payable $ – 0 $ – 0 $ 1,209 $ 1,200
Accrued liabilities $ 22,027 $ 25,181 $ 7,689 $ 5,217
Deferred revenues $ 8,080 $ 8,940 $ 9,548 $ 7,435
Other current liabilities $ – 0 $ – 0 $ 8,498 $ 7,439
Total current liabilities $ 79,006 $ 80,610 $ 63,448 $ 43,658
Non-current liabilities
Long-term debt $ 75,427 $ 53,463 $ 28,987 $ 16,960
Deferred taxes liabilities $ 26,019 $ 24,062 $ 20,259 $ 16,489
Deferred revenues $ 2,930 $ 3,624 $ 3,031 $ 2,625
Other long-term liabilities $ 10,055 $ 9,365 $ 4,567 $ 3,719
Total non-current liabilities $ 114,431 $ 90,514 $ 56,844 $ 39,793
Total liabilities $ 193,437 $ 171,124 $ 120,292 $ 83,451
Stockholders’ equity
Common stock $ 31,251 $ 27,416 $ 23,313 $ – 0
Additional paid-in capital $ – 0 $ – 0 $ – 0 $ 19,764
Retained earnings $ 96,364 $ 92,284 $ 87,152 $ 104,256
Accumulated other comprehensive income $ 634 $ (345) $ 1,082 $ (471)
Total stockholders’ equity $ 128,249 $ 119,355 $ 111,547 $ 123,549
Total liabilities and stockholders’ equity $ 321,686 $ 290,479 $ 231,839 $ 207,000
APPL Cash Flow
APPLE INC (AAPL) Statement of CASH FLOW
Fiscal year ends in September. USD in millions except per share data. 9/24/16 9/26/15 9/27/14 9/28/13
Cash Flows From Operating Activities
Net income $ 45,687 $ 53,394 $ 39,510 $ 37,037
Depreciation & amortization $ 10,505 $ 11,257 $ 7,946 $ 6,757
Deferred income taxes $ 4,938 $ 1,382 $ 2,347 $ 1,141
Stock based compensation $ 4,210 $ 3,586 $ 2,863 $ 2,253
Accounts receivable $ 1,095 $ 611 $ (4,232) $ (2,172)
Inventory $ 217 $ (238) $ (76) $ (973)
Accounts payable $ 1,791 $ 5,400 $ 5,938 $ 2,340
Other working capital $ (2,619) $ 5,874 $ 5,417 $ 7,283
Other non-cash items
Net cash provided by operating activities $ 65,824 $ 81,266 $ 59,713 $ 53,666
Cash Flows From Investing Activities
Investments in property, plant, and equipment $ (12,734) $ (11,247) $ (9,571) $ (8,165)
Acquisitions, net $ (297) $ (343) $ (3,765) $ (496)
Purchases of investments $ (143,816) $ (166,402) $ (217,128) $ (148,489)
Sales/Maturities of investments $ 111,794 $ 121,985 $ 208,111 $ 124,447
Purchases of intangibles $ (814) $ (241) $ (242) $ (911)
Other investing activities $ (110) $ (26) $ 16 $ (160)
Net cash used for investing activities $ (45,977) $ (56,274) $ (22,579) $ (33,774)
Cash Flows From Financing Activities
Debt issued $ 18,266 $ 16,896
Debt repayment $ (2,500)
Common stock issued $ 495 $ 543 $ 730 $ 530
Common stock repurchased $ (29,722) $ (35,253) $ (45,000) $ (22,860)
Dividend paid $ (12,150) $ (11,561) $ (11,126) $ (10,564)
Other financing activities $ 23,394 $ 28,555 $ (419) $ (381)
Net cash provided by (used for) financing activities $ (20,483) $ (17,716) $ (37,549) $ (16,379)
Net change in cash $ (636) $ 7,276 $ (415) $ 3,513
Cash at beginning of period $ 21,120 $ 13,844 $ 14,259 $ 10,746
Cash at end of period $ 20,484 $ 21,120 $ 13,844 $ 14,259
Free Cash Flow
Operating cash flow $ 65,824 $ 81,266 $ 59,713 $ 53,666
Capital expenditure $ (13,548) $ (11,488) $ (9,813) $ (9,076)
Free cash flow $ 52,276 $ 69,778 $ 49,900 $ 44,590
