based on apple and microsoft income statement for the last two years. 2020 & 2019 for microsoft and 2019 & 2018 for Apple
Our goal is to determine whether each company's revenue levels and changes seem appropriate and in line with external factors. Additional analysis: (a) If the company distinguishes among types of revenue on the income statement, use horizontal and vertical analyses to identify any changes in the product line mix or where sales are growing most quickly. Find the footnote on segment revenues and profits, and identify trends or significant changes. (b) Assess each company's revenue recognition policy by comparing it with the other and with those of some other close competitors. (c) Consider uneamed revenue on the balance sheet. How big is it common size), and is it fluctuating over time? (d) For companies that operate globally, determine the effect of foreign currency fluctuations on revenue. If these are substantial year after year, it might indicate that managers are not effectively hedging, and this would warrant additional investigation. cevable Our goal is to determine whether each company's revenue levels and changes seem appropriate and in line with external factors. Additional analysis: (a) If the company distinguishes among types of revenue on the income statement, use horizontal and vertical analyses to identify any changes in the product line mix or where sales are growing most quickly. Find the footnote on segment revenues and profits, and identify trends or significant changes. (b) Assess each company's revenue recognition policy by comparing it with the other and with those of some other close competitors. (c) Consider uneamed revenue on the balance sheet. How big is it common size), and is it fluctuating over time? (d) For companies that operate globally, determine the effect of foreign currency fluctuations on revenue. If these are substantial year after year, it might indicate that managers are not effectively hedging, and this would warrant additional investigation. cevable