Question
. Fill up the following tables. a) Using Apples income statement information of the fiscal year of 2019 and 2018, conduct horizonal analysis below using
. Fill up the following tables.
a) Using Apples income statement information of the fiscal year of 2019 and 2018, conduct horizonal analysis below using the year of "2018" as the base year
($ in millions)
Items | 2019 | 2018 | Amount | Percent |
Net sales | $260,174 | $265,595 |
|
|
Cost of sales | 161,782 | 163,756 |
|
|
Gross margin | 98,392 | 101,839 |
|
|
Operating expenses: |
|
| ||
Research and development | 16,217 | 14,236 |
|
|
Selling, general and administrative | 18,245 | 16,705 |
|
|
Total operating expenses | 34,462 | 30,941 |
|
|
Operating income | 63,930 | 70,898 |
|
|
Other income/(expense), net | 1,807 | 2,005 |
|
|
Income before provision for income taxes | 65,737 | 72,903 |
|
|
Provision for income taxes | 10,481 | 13,372 |
|
|
Net income | $55,256 | $59,531 |
|
|
b) Using Apples income statement information of the fiscal year of 2019 and 2018, conduct vertical analysis below using Net sales as the base amount -
Items | 2019 | Percent | 2018 | Percent |
Net sales | $260,174 |
| $265,595 |
|
Cost of sales | 161,782 |
| 163,756 |
|
Gross margin | 98,392 |
| 101,839 |
|
Operating expenses: |
|
|
| |
Research and development | 16,217 |
| 14,236 |
|
Selling, general and administrative | 18,245 |
| 16,705 |
|
Total operating expenses | 34,462 |
| 30,941 |
|
Operating income | 63,930 |
| 70,898 |
|
Other income/(expense), net | 1,807 |
| 2,005 |
|
Income before provision for income taxes | 65,737 |
| 72,903 |
|
Provision for income taxes | 10,481 |
| 13,372 |
|
Net income | $55,256 |
| $59,531 |
|
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