502 # The following is a comparative consolidated Statement of Financial Position for a particular fim X: Consolidated Balance Sheet (S in Millions) Dec. 31 Year 2 Year 1 Assets Current assets Cash and short-term investments $ 13,927 $ 8,966 Accounts receivable, net 1,460 980 Other 427 Total current assets 15.889 10,373 Property, plant and equipment, net 1,505 1,465 Equity investment 4,703 2,346 Other assets 260 203 Total assets $ 22,357 $ 14,387 Liabilities and stockholders' equity Current liabilities Accounts payable $ 759 $ 721 Accrued compensation 359 336 Income taxes payable 915 466 Unearned revenue 2,888 1,418 Other 809 669 Total current liabilities 5,730 3,610 Stockholders' equity Convertible preferred stock: 980 980 Common stock and paid-in-capital: 8,025 4,509 Retained earnings 7,622 5,288 Total stockholders' equity 16,627 10,777 Total liabilities and stockholders' equity S 22,357 S 14.387 Required 1. Using the two years balance sheet, compare and contrast the firm's financial position at the end of these two years. E.g., were there any major changes in the firm's financial position from the end of year I to the end of year 2? In what ways did the firm's financial position improve or deteriorate over these two years. 2. Assume that you are a financial analyst. Would you advise your clients to invest in the firm's common stock? Why and why not? 3. What information beyond the available comparative balance sheet to provide relevant advises to your clients