I. Perform financial statement analysis comparing these two companies: Apple Inc. & Intel Success will be tied to your understanding of how to read and interpret the 10K, annual reports and financial statements. 1. Clearly describe the company and the industry the company is a part of. a. Is the industry br market growing or shrinking (Provide a clear explanation and provide research to defend your answer). 2. Looking at the most recent annual report, is the company financed primarily by debt or equity? (Provide a clear explanation and defend your answer) a. Is there a benefit to financing with debt or equity, is than an advantage using one or the other? b. Is the company paying off debt or adding debt? 3. What is the largest current asset on the most recent annual report? a. Why do you think the company maintains such a large balance? (Provide a clear explanation and defend your answer). 4. Compute the company Free Cash Flow on the most recent annual report (show your computations) a. Interpret the computation, what does the free cash flow tell you about the company? (Provide a clear explanation) b. Does the company appear may have to invest in replacing out dated assets in the near future? 5. What is P/E ratio for the companies? What does the P/E ratios say about the valuation of the companies. Why is one of the companies P/E ratio higher, Consider the revenue growth as the main driver of P/E ratio. (Provide a clear explanation of how you evaluated the P/E ratio in your recommendation. 6. Summarize your evaluation of liquidity, asset turnover, solvency, and profitability by performing a through horizontal analysis. 2. Update and analyze condensed. common-sized, and trend analysis financisl statements for the two companies. 8. Prepere condensed financial statements b. Prepare trend analysis c. Prepare common-size financial starements d. Prepare statement of cash flows Sources: Audited financiat statements 3. Update financial statement ratios for your company in the ratio tab. The following financial rations will be computed - Profitability Ratios: - Profit Margin Ratio - Return on Assets - Retum on Equity - Gross Profit Margio o Efficiency Indicators: - Accounts receivables turnover - Inventory tarnover - Asset tumover o Liquidity Ratios: - Current ratiol - Quick ratio - Solvency Ratios: - Debt to equity ratio - Debtratio - Times interest eamed ratio Success will be tied to your understanding of how to read and interpret the 10K, annual reports and financial statements. 1. Clearly describe the company and the industry the company is a part of. a. Is the industry or market growing or shrinking (Provide a clear explanation and provide research to defend your answer). 2. Looking at the most recent annual teport. is the company financed primarily by debt or equity? (Provide a clear explanation and defend your answer) a. Is there a benefit to financing with debt or equity, is than an edvantage using one or the other? b. Is the company paying off debt or adding debr? 3. What is the largest current asset on the most recent annual report? a. Why do you think the company maintains soch a large balance? (Provide a clear explanstion and defend your answer). 4. Compute the company Free Cash Flow on the most recent annual report (show your computations) 2. Interpret the computation, what does the free cash flow tell you about the company? (Provide a clear explanation) b. Does the company appear may have to invest in replacing out dated assets in the near flifure? 5. What is P/E ratio for the companies? What does the P/E ratios say about the valuation of the companies. Why is one of the companies PEE ratio higher. Consider the revenue growth as the main driver of P/E ratio. (Provide a clear explanation of how you evaluated the P/E ratiogin your recommendation. 6. Sammarize your evalution of liquidity, asset romover, solvency, and profitability by performiog a through horizontal anelysis