I have the new work here, so I have attached the excel of Apple's cash flow, balance sheet, income statement and FCF.

The objective is to based on the Apple Data and provide a report includes: Assumption, Analysis and Recommendation on the company based on the provided data, which is the excel I attached below.

There is no need any calculation because it will just be a report. The professor did not give us any objective or expecting any specific report from us, so you can just look at the Apple data and come up with the assumptions, analysis and recommendations for the company. It does not need to be long, just enough to cover the 3 points based on the data.

I am required to do 1-2/each of assumptions, analysis and recommendation.

Thanks

BALANCE SHEET Assets Current assets Cash Cash and cash equivalents Short-term investments Total cash Receivables Inventories Deferred income taxes Other current assets Total current assets Non-current assets Property, plant and equipment Gross property, plant and equipment Accumulated Depreciation Net property, plant and equipment Equity and other investments Goodwill Intangible assets Other long-term assets Total non-current assets Total assets Liabilities and stockholders' equity Liabilities Current liabilities Short-term debt Accounts payable Taxes payable Accrued liabilities Deferred revenues Other current liabilities Total current liabilities Non-current liabilities Long-term debt Deferred taxes liabilities Deferred revenues Other long-term liabilities Total non-current liabilities Total liabilities Stockholders' equity Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive income Fiscal year ends in September. USD in millions except per share data. Sep-11 Sep-12 Sep-13 Sep-14 9,815.00 16,137.00 25,952.00 5,369.00 776.00 2,014.00 10,877.00 44,988.00 10,746.00 18,383.00 29,129.00 10,930.00 791.00 2,583.00 14,220.00 57,653.00 14,259.00 26,287.00 40,546.00 13,102.00 1,764.00 3,453.00 14,421.00 73,286.00 13,844.00 11,233.00 25,077.00 17,460.00 2,111.00 4,318.00 19,565.00 68,531.00 11,768.00 21,887.00 28,519.00 39,015.00 (3,991.00) (6,435.00) (11,922.00) (18,391.00) 7,777.00 15,452.00 16,597.00 20,624.00 55,618.00 92,122.00 106,215.00 130,162.00 896.00 1,135.00 1,577.00 4,616.00 3,536.00 4,224.00 4,179.00 4,142.00 3,556.00 5,478.00 5,146.00 3,764.00 71,383.00 118,411.00 133,714.00 163,308.00 116,371.00 176,064.00 207,000.00 231,839.00 14,632.00 1,140.00 8,107.00 4,091.00 27,970.00 21,175.00 1,535.00 8,387.00 5,953.00 1,492.00 38,542.00 22,367.00 1,200.00 5,217.00 7,435.00 7,439.00 43,658.00 6,308.00 30,196.00 1,209.00 7,689.00 9,548.00 8,498.00 63,448.00 1,686.00 10,100.00 11,786.00 39,756.00 2,648.00 16,664.00 19,312.00 57,854.00 16,960.00 16,489.00 2,625.00 3,719.00 39,793.00 83,451.00 28,987.00 20,259.00 3,031.00 4,567.00 56,844.00 120,292.00 13,331.00 62,841.00 443.00 16,422.00 101,289.00 499.00 19,764.00 104,256.00 (471.00) 23,313.00 87,152.00 1,082.00 Total stockholders' equity Total liabilities and stockholders' equity 76,615.00 116,371.00 118,210.00 176,064.00 123,549.00 207,000.00 111,547.00 231,839.00 ns except per share data. Sep-15 21,120.00 20,481.00 41,601.00 16,849.00 2,349.00 5,546.00 23,033.00 89,378.00 49,257.00 (26,786.00) 22,471.00 164,065.00 5,116.00 3,893.00 5,556.00 201,101.00 290,479.00 10,999.00 35,490.00 25,181.00 8,940.00 80,610.00 53,463.00 24,062.00 3,624.00 9,365.00 90,514.00 171,124.00 27,416.00 92,284.00 (345.00) 119,355.00 290,479.00 INCOME STATEMENT Revenue Cost of revenue Gross profit Operating expenses Research and development Sales, General and administrative Total operating expenses Operating income Interest Expense Other income (expense) Income before taxes Provision for income taxes Net income from continuing operations Net income Net income available to common shareholders Earnings per share Basic Diluted Weighted average shares outstanding Basic Diluted EBITDA Fiscal year ends in September. USD in millions except per sh Sep-11 Sep-12 Sep-13 108,249.00 64,431.00 43,818.00 156,508.00 87,846.00 68,662.00 170,910.00 106,606.00 64,304.00 2,429.00 7,599.00 10,028.00 33,790.00 415.00 34,205.00 8,283.00 25,922.00 25,922.00 25,922.00 3,381.00 10,040.00 13,421.00 55,241.00 522.00 55,763.00 14,030.00 41,733.00 41,733.00 41,733.00 4,475.00 10,830.00 15,305.00 48,999.00 136.00 1,292.00 50,155.00 13,118.00 37,037.00 37,037.00 37,037.00 4.01 3.95 6.38 6.31 5.72 5.68 6,470.00 6,557.00 35,604.00 6,544.00 6,617.00 58,518.00 6,477.00 6,522.00 57,048.00 tember. USD in millions except per share data. Sep-14 Sep-15 TTM 182,795.00 112,258.00 70,537.00 233,715.00 140,089.00 93,626.00 220,288.00 133,290.00 86,998.00 6,041.00 11,993.00 18,034.00 52,503.00 384.00 1,364.00 53,483.00 13,973.00 39,510.00 39,510.00 39,510.00 8,067.00 14,329.00 22,396.00 71,230.00 733.00 2,018.00 72,515.00 19,121.00 53,394.00 53,394.00 53,394.00 9,695.00 14,417.00 24,112.00 62,886.00 1,244.00 2,604.00 64,246.00 16,449.00 47,797.00 47,797.00 47,797.00 6.49 6.45 9.28 9.22 8.63 8.58 6,086.00 6,123.00 61,813.00 5,753.00 5,793.00 84,505.00 5,541.00 5,573.00 76,566.00 Statement of CASH FLOW Sep-11 Cash Flows From Operating Activities Net income Depreciation & amortization Deferred income taxes Stock based compensation Accounts receivable Inventory Accounts payable Other working capital Net cash provided by operating activities Cash Flows From Investing Activities Investments in property, plant, and equipment Acquisitions, net Purchases of investments Sales/Maturities of investments Purchases of intangibles Other investing activities Net cash used for investing activities Cash Flows From Financing Activities Debt issued Common stock issued Common stock repurchased Dividend paid Other financing activities Net cash provided by (used for) financing activities Net change in cash Cash at beginning of period Cash at end of period Free Cash Flow Operating cash flow Capital expenditure Free cash flow Fiscal year ends in September. USD in millions excep Sep-12 Sep-13 25,922.00 1,814.00 2,868.00 1,168.00 143.00 275.00 2,515.00 2,824.00 37,529.00 41,733.00 3,277.00 4,405.00 1,740.00 (5,551.00) (15.00) 4,467.00 800.00 50,856.00 37,037.00 6,757.00 1,141.00 2,253.00 (2,172.00) (973.00) 2,340.00 7,283.00 53,666.00 (4,260.00) (244.00) (102,317.00) 69,853.00 (3,192.00) (259.00) (40,419.00) (8,295.00) (350.00) (151,232.00) 112,805.00 (1,107.00) (48.00) (48,227.00) (8,165.00) (496.00) (148,489.00) 124,447.00 (911.00) (160.00) (33,774.00) 831.00 613.00 1,444.00 (1,446.00) 11,261.00 9,815.00 665.00 (2,488.00) 125.00 (1,698.00) 931.00 9,815.00 10,746.00 16,896.00 530.00 (22,860.00) (10,564.00) (381.00) (16,379.00) 3,513.00 10,746.00 14,259.00 37,529.00 (7,452.00) 30,077.00 50,856.00 (9,402.00) 41,454.00 53,666.00 (9,076.00) 44,590.00 tember. USD in millions except per share data. Sep-14 Sep-15 TTM 39,510.00 7,946.00 2,347.00 2,863.00 (4,232.00) (76.00) 5,938.00 5,417.00 59,713.00 53,394.00 11,257.00 1,382.00 3,586.00 611.00 (238.00) 5,400.00 5,874.00 81,266.00 47,797.00 11,076.00 3,753.00 4,095.00 (1,344.00) 211.00 (959.00) (1,456.00) 63,173.00 (9,571.00) (3,765.00) (217,128.00) 208,111.00 (242.00) 16.00 (22,579.00) (11,247.00) (343.00) (166,402.00) 121,985.00 (241.00) (26.00) (56,274.00) (12,375.00) (259.00) (142,322.00) 116,275.00 (793.00) (481.00) (39,955.00) 18,266.00 730.00 (45,000.00) (11,126.00) (419.00) (37,549.00) (415.00) 14,259.00 13,844.00 543.00 (35,253.00) (11,561.00) 28,555.00 (17,716.00) 7,276.00 13,844.00 21,120.00 466.00 (36,949.00) (12,022.00) 28,205.00 (20,300.00) 2,918.00 15,319.00 18,237.00 59,713.00 (9,813.00) 49,900.00 81,266.00 (11,488.00) 69,778.00 63,173.00 (13,168.00) 50,005.00 Free Cash Flow Statement EBIT Tax Rate NOPAT Sep-11 34,205.00 24% 25,922.00 Sep-12 55,763.00 25% 41,733.00 Sep-13 50,019.00 26% 36,936.57 Net Operating Working Capital Net Fixed Assets Total Operating Capital 4,098.00 7,777.00 11,875.00 5,633.00 15,452.00 21,085.00 3,341.00 16,597.00 19,938.00 NOPAT Net Investment in Operating Capital Free Cash Flows 25,922.00 41,733.00 9,210.00 32,523.00 36,936.57 (1,147.00) 38,083.57 FCF = NOPAT-Net Investment in Operating Capital NOPAT = EBIT (1-Tax Rate) Assumption Free Cash flow will grow at constant rate of 5% after 2015 WACC for the firm is 10% Value of Operations is equal to the present value of the future free cash flow of the firm Value of operation at the end of 2014 Add: Value of Non-Operating Assets Terminal Value 1,037,585.60 19,991.00 1,057,576.60 Less: Value of the Interest-Bearing Debt Intrinsic Value of the Firm's Equity 28,987.00 1,028,589.60 Sep-14 53,099.00 26% 39,226.32 Sep-15 71,782.00 26% 52,854.28 158.00 20,624.00 20,782.00 (714.00) 22,471.00 21,757.00 39,226.32 844.00 38,382.32 52,854.28 975.00 51,879.28 Assumptions Since the Apple has adapted to region based operational policies, it is assumed that major difference in the revenue is because of the growth in Emerging regions such as China and Middle East. It is further assumed that the major item for growth is IPhone because the sale of tablet has seen to be decreasing. It is assumed that the current liabilities of the organization has increased because organization is implementing its cash management policies very well and paying its payable as late as possible to manage their cash in a better way. It is further assumed that the main reason behind increase in total debt is financial leverage effect; Apple seeks to take advantage of low interest rates and to reduce their tax expense. Analysis We can start the analysis with income statement which looks very strong in the year 2015, as the net revenue figure hiked to $233,716 million in the year 2015 compared to $182,795 million in the year 2014. If we take a look at the historical data, this kind of hike of witnessed back in the year 2012, since then the growth is slow. The net income figure responded in almost same proportion and reached $53,394 million in the year 2015, from $39,510 in the year 2014. We can conclude that Apple is heading towards growth and trying to expand and reach out to more markets using the goodwill of its brand. The basic EPS is also seen to be $9.28, which is significantly high compared to previous year. If we take a good look at the Balance Sheet, it is pretty obvious that the current ratio is still more than one and it has remained that way in historical data of previous five years presented in the worksheet because current assets are always higher than current liabilities in these five years. The ratio has been slightly reduced in the year 2014 and 2015 as the difference between current assets and current liabilities is not substantial anymore. It can be said that the Apple is using cash management techniques and paying its obligations on more extended dates. The same kind of behavior has also been witnessed in the debt ratio, in the year 2014 and 2015 a major section of total assets is financed by total liabilities. This can be concluded based on these results that the organization is trying to gain the leverage advantage to reduce its tax cost and utilize the low rate of interests. The cash management has been improved significantly in the year 2015 with net cash increase of $7,276 in the year 2015, which shows the great cash management policies of the Apple. Recommendations Apple should focus more on the regions outside Europe and US, because this is the best way to expand and increase revenue. Apple should invest more in innovation and come up with more differentiated items to beat the competition. Apple need to keep a keen eye on the current and long-term liabilities because this may pose huge threat to very existence of the organization. Assumptions Since the Apple has adapted to region based operational policies, it is assumed that major difference in the revenue is because of the growth in Emerging regions such as China and Middle East. It is further assumed that the major item for growth is IPhone because the sale of tablet has seen to be decreasing. It is assumed that the current liabilities of the organization has increased because organization is implementing its cash management policies very well and paying its payable as late as possible to manage their cash in a better way. It is further assumed that the main reason behind increase in total debt is financial leverage effect; Apple seeks to take advantage of low interest rates and to reduce their tax expense. Analysis We can start the analysis with income statement which looks very strong in the year 2015, as the net revenue figure hiked to $233,716 million in the year 2015 compared to $182,795 million in the year 2014. If we take a look at the historical data, this kind of hike of witnessed back in the year 2012, since then the growth is slow. The net income figure responded in almost same proportion and reached $53,394 million in the year 2015, from $39,510 in the year 2014. We can conclude that Apple is heading towards growth and trying to expand and reach out to more markets using the goodwill of its brand. The basic EPS is also seen to be $9.28, which is significantly high compared to previous year. If we take a good look at the Balance Sheet, it is pretty obvious that the current ratio is still more than one and it has remained that way in historical data of previous five years presented in the worksheet because current assets are always higher than current liabilities in these five years. The ratio has been slightly reduced in the year 2014 and 2015 as the difference between current assets and current liabilities is not substantial anymore. It can be said that the Apple is using cash management techniques and paying its obligations on more extended dates. The same kind of behavior has also been witnessed in the debt ratio, in the year 2014 and 2015 a major section of total assets is financed by total liabilities. This can be concluded based on these results that the organization is trying to gain the leverage advantage to reduce its tax cost and utilize the low rate of interests. The cash management has been improved significantly in the year 2015 with net cash increase of $7,276 in the year 2015, which shows the great cash management policies of the Apple. Revenue Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 TTM 108,249. 00 156,508. 00 170,910. 00 182,795. 00 233,715. 00 220,288. 00 25,922.0 0 41,733.0 0 37,037.0 0 39,510.0 0 53,394.0 0 47,797.0 0 4.01 6.38 5.72 6.49 9.28 8.63 (1,446.0 0) 931.00 3,513.00 (415.00) 7,276.00 2,918.00 Net income Earnings per share Basic Net change in cash 250,000.00 200,000.00 150,000.00 100,000.00 50,000.00 0.00 11-Sep 12-Sep 13-Sep 14-Sep 15-Sep TTM -50,000.00 Revenue Net income Net change in cash 10 9 8 7 6 5 4 3 2 1 0 11-Sep 12-Sep 13-Sep 14-Sep Earnings Per Share Recommendations 15-Sep TTM Apple should focus more on the regions outside Europe and US, because this is the best way to expand and increase revenue. Apple should invest more in innovation and come up with more differentiated items to beat the competition. Apple need to keep a keen eye on the current and long-term liabilities because this may pose huge threat to very existence of the organization