Example:

1. Prepare common size financial statements analysis (horizontal and vertical analysis) for the Company as we demonstrated in class using excel. (Ie You can download the comparative balance sheets to excel from the company website and compare the balance sheet items as a percentage of total assets for each year and the change in the items year over yearas $ amount and a percentage as we demonstrated in class).

PART II Item 8 BALANCE SHEETS (In millions) 2020 2019 $ 13,576 $ 122,951 11,356 122,463 June 30, Assets Current assets: Cash and cash equivalents Short-term investments Total cash, cash equivalents, and short-term investments Accounts receivable, net of allowance for doubtful accounts of $788 and $411 Inventories Other current assets 136,527 133,819 32,011 1,895 11,482 29,524 2,063 10,146 181,915 175,552 Total current assets Property and equipment, net of accumulated depreciation of $43,197 and $35,330 Operating lease right-of-use assets Equity investments Goodwill Intangible assets, net Other long-term assets 44.151 8,753 2,965 43,351 7,038 13,138 36,477 7,379 2,649 42,026 7,750 14,723 Total assets $ 301,311 $ 286,556 $ Liabilities and stockholders' equity Current liabilities: Accounts payable Current portion of long-term debt Accrued compensation Short-term income taxes Short-term unearned revenue Other current liabilities 12,530 $ 3,749 7,874 2,130 36,000 10,027 9,382 5,516 6,830 5,665 32,676 9,351 Total current liabilities Long-term debt Long-term income taxes Long-term unearned revenue Deferred income taxes Operating lease liabilities Other long-term liabilities Total liabilities 72,310 59,578 29,432 3,180 204 7,671 10,632 69,420 66,662 29,612 4,530 233 6,188 7,581 183,007 184.226 Commitments and contingencies Stockholders' equity: Common stock and paid-in capital - shares authorized 24,000; outstanding 7,571 and 7,643 Retained earnings Accumulated other comprehensive income (loss) 80,552 34,566 3,186 78,520 24,150 (340) Total stockholders' equity 118,304 102,330 Total liabilities and stockholders' equity $ 301,311 $ 286,556 Refer to accompanying notes. Vertical Analysis 2020 2019 2018 47.58% 52.42% 100.00% 52.50% 47.50% 100.00% 58.44% 41.56% 100.00% Income Statement Year Ended June 30 2020 2019 2018 Revneue: Product $ 68,041 $ 66,069 $ 64,497 Service and Other $ 74,974 $ 59,774 $ 45,863 Total Revenue $ 143,015 $125,843 $110,360 Cost of Revenue: Product $ 16,017 $ 16,273 $ 15,420 Service and Other $ 30,061 $ 26,637 $ 22,933 Total Cost of Revenue $ 46,078 $ 42,910 $ 38,353 Gross Margin $ 96,937 $ 82,933 $ 72,007 Research and Development $ 19,269 $ 16,876 $ 14,726 Sales and Marketing $ 19,598 $ 18,213 $ 17,469 General and Administrative $ 5,111 $ 4,885 $ 4,754 Operating Income $ 52,959$ 42,959 $ 35,058 Other Income, Net $ 77 $ 729 $ 1,416 Income before income Taxes $ 53,036 $ 43,688 $ 36,474 Provision for Income Taxes $ 8,755 $ 4,448 $ 19,903 Net Income $ 44,281 $ 39,240 $ 16,571 13.97% 20.78% 34.75% 65.25% 13.34% 11.20% 21.02% 32.22% 67.78% 13.47% 13.70% 3.57% 37.03% 0.05% 37.08% 6.12% 30.96% 12.93% 21.17% 34.10% 65.90% 13.41% 14.47% 3.88% 34.14% 0.58% 34.72% 3.53% 31.18% 15.83% 4.31% 31.77% 1.28% 33.05% 18.03% 15.02% Horizontal Analysis % Change % Change 2.98% $ 1,572 25.43% $ 13,911 13.65% $ 15,483 2.44% 58.44% 30.33% 41.56% 14.03% 100.00% Income Statement Year Ended June 30 2020 2019 2018 Change Revneue: Product $ 68,041 $ 66,069 $ 64,497 $ 1,972 Service and Other $ 74,974 $ 59,774 $ 45,863 $ 15,200 Total Revenue $ 143,015 $125,843 $ 110,360 $ 17,172 Cost of Revenue: Product $ 16,017 $ 16,273 $ 15,420 $ (256) Service and Other $ 30,061 $ 26,637 $ 22,933$ 3,424 Total Cost of Revenue $ 46,078 $ 42,910 $ 38,353 $ 3,168 Gross Margin $ 96,937 $ 82,933 $ 72,007 $ 14,004 Research and Development $ 19,269 $ 16,876 $ 14,726$ 2,393 Sales and Marketing $ 19,598 $ 18,213 $ 17,469 $ 1,385 General and Administrative $ 5,111 $ 4,885 $ 4,754 $ 226 Operating Income $ 52,959$ 42,959$ 35,058 $ 10,000 Other Income,Net $ 77 $ 729 $ 1,416 $ (652) Income before income Taxes $ 53,036 $ 43,688 $ 36,474 $ 9,348 Provision for Income Taxes $ 8,755 $ 4,448 $ 19,903 $ 4,307 Net Income $ 44,281 $ 39,240 $ 16,571 $ 5,041 -1.57% $ 853 12.85%$ 3,704 7.38%$ 4,557 16.89% $ 10,926 14.18%$ 2,150 7.60% $ 744 4.63% $ 131 23.28% $ 7,901 -89.44% $ (687) 21.40% $ 7,214 96.83% $(15,455) 12.85% $ 22,669 5.53% 16.15% 11.88% 15.17% 14.60% 4.26% 2.76% 22.54% -48.52% 19.78% -77.65% 136.80% 13.97% 20.78% 34.75% 65.25% 13.34% 15.83% 4.31% 31.77% 1.28% 33.05% 18.03% 15.02%