Income Statements

Assets

Liabilities & Shareholders' Equity

Operating Activities

Investing Activities

Financing Activities

Question 4

A).What were Apple's total current assets for both years?

B).Are assets that Apple included under current assets listed in proper order? Explain.

C).How are Apple's assets classified?

D).What was Apple's Cash and cash equivalents for both years?

E).What were Apple's total current liabilities for both years?

F).Net amount of property, plant, and equipment (land, buildings, and equipment).

G).Total equity.

H).What conclusions concerning the companies' respective financial positions can be drawn?

Fiscal year is February January. All values USD Millions. 2018 2017 2016 2015 2014 5-year trend Sales/Revenue 16,702 22,138 25,146 31,198 36,188 Sales Growth -24.56% -11.96% -19.40% -13.79% Cost of Goods Sold (COGS) incl. D&A 13,240 17,581 19,711 24,553 28,097N COGS excluding D&A 12,948 17,226 19,292 23,980 27,376 Depreciation & Amortization Expense 419 Depreciation Amortization of Intangibles COGS Growth -24.69% -10.81% -19.72% -12.61% Gross Income 3,462 4,557 5,435 6,645 8,091 Gross Income Growth -24.03% -16.15% -18.21% -17.87% Gross Profit Margin 20.73% SG&A Expense 4,896 5,951 6,803 8,076 Other SG&A 4,896 5,951 6,803 8,076 9,328 III SGA Growth -17.73% -12.52% -15.76% -13.42% EBIT (1,434) (1,394) (1,368) (1,431) (1,237) VIII Unusual Expense 644 831 375 286 357 Non Operating Income/Expense 1,648 Non-Operating Interest Income TIL DII II. TID Equity in Affiliates (Pretax) Interest Expense 539 404 323 313 Interest Expense Growth 33.42% 25.08% 3.19% 23.23% Gross Interest Expense 539 404 325 315 Interest Capitalized 256 2 (972) III I - - Pretax Income (981) (2,395) (1,385) (1,685) Pretax Income Growth 59.04% -72.92% 17.80% -73.35% Pretax Margin -5.87% 1 Income Tax (598) (174) (257) 144 ---- Income Tax - Current Domestic Income Tax - Current Foreign ! Income Tax-Deferred Domestic (616) (221) (305) (69) Income Tax-Deferred Foreign (1) 135 Consolidated Net Income (383) (2,221) (1,128) (1,810) (1116) Minority Interest Expense (128) 249 - Net Income (383) (2,221) (1,129) (1,682) (1,365) Net Income Growth 82.76% -96.72% 32.88% -23.22% Net Margin -2.29% Net Income After Extraordinaries (383) (2,221) (1,129) (1,682) (1,365) - L Net Income Available to common (383) (2,221) (1,129) (1,682) (1,365) EPS (Basic) (3.57) (20.78) (10.59) (15.82) EPS (Basic) Growth 82.82% -96.22% 33.06% -22.92% Basic Shares Outstanding 107 107 107 106 EPS (Diluted) (3.57) (20.78) (10.59) (15.82) (12.87) ----- . -- - 106 III (12.87) ----- --." 106 III (516) - EPS (Diluted) Growth 82.84% -96.17% 33.07% -22.99% Diluted Shares Outstanding 107 107 107 106 EBITDA (1,142) (1,039) (949) (858) EBITDA Growth -9.91% -9.48% -10.61% -66.28% EBITDA Margin -6.84% EBIT (1,434) (1,394) (1,368) (1,431) (1,237) IIIII Fiscal year is February January. All values USD Millions. 2018 2014 5-year trend 2017 286 2016 238 2015 250 Cash & Short Term Investments 336 1,038 Cash Only 336 286 238 250 1,038 Cash & Short Term Investments Growth 17.48% 20.17% - 4.80% -75.92% Cash & ST Investments/Total Assets 4.45% 3.03% 2.05% 1.89% 5.68% Total Accounts Receivable 466 Accounts Receivables, Net 343 466 Accounts Receivables, Gross 378 503 454 581 Inl (28) - IL Bad Debt/Doubtful Accounts (35) (37) (34) (25) Accounts Receivable Growth -26-39% 11.22% -2.33% -22.42% Accounts Receivable Turnover 48.69 47.51 60.01 72.72 Inventories 2,798 3,959 5,172 4,943 Finished Goods 2,798 3,959 4,943 Other Current Assets 335 285 Miscellaneous Current Assets 335 285 241 Total Current Assets 3,812 4,996 6,045 5,863 Net Property, Plant & Equipment 1,729 2,240 2,631 4,449 65.44 Illi 7,034 I . 7,034 II. 334 Tull 334 Tull 8,959 L .. 5,394 Il -- 10,109 1. 5,405 III- 850 IL -- 267 II 2,587 4,715 Property, Plant & Equipment - Gross 4,110 5,081 5,591 8,313 Buildings 2432 2,954 3,140 4,701 Land & Improvements 659 770 1,701 Leases 151 272 282 Other Property, Plant & Equipment 868 224 1,133 2,841 1,629 Accumulated Depreciation 2,381 3,864 Total Investments and Advances LT Investment - Affiliate Companies Intangible Assets 2178 2366 1,790 269 Net Goodwill 269 3.229 III. 379 l 2,850 Net Other Intangibles 2,097 Other Assets 679 - Deferred Charges Tangible Other Assets 284 382 420 679 Total Assets 7,554 9,428 11,607 13,209 18,261 Assets - Total - Growth -19.88% -18.77% -12.13% -27.67% Asset Turnover 1.97 Return On Average Assets -4.51% All values USD Millions. 2018 2015 2014 5-year trend 2017 590 2016 868 ST Debt & Current Portion LT Debt 1,883 690 1,415 I...I Short Term Debt 915 797 1,332 Current Portion of Long Term Debt 968 590 83 ---IL Accounts Payable 650 1,077 1633 1,706 2.593 I I .- Accounts Payable Growth -39.65% -34.05% -4.28% -34.21% Income Tax Payable 480 387 Other Current Liabilities 2,382 3,014 2,937 3,200 3,790 Miscellaneous Current Liabilities 2382 3,014 3,200 3,790 2,937 5,438 Total Current Liabilities 4,915 4,681 6,076 8,185 Current Ratio 0.78 1.07 211 Quick Ratio 0.21 0.22 0.96 0.15 0.04 1.09 0.24 Juli 0.13 Cash Ratio 0.07 0.06 Long-Term Debt 2,496 3,808 3,110 2,834 Long-Term Debt excl. Capitalized Leases 2,199 3,470 2,900 2,558 2558 U l 2558 ILI Non-Convertible Debt 2,199 3,470 2,900 Capitalized Lease Obligations 297 338 301 210 276 Provision for Risks & Charges 2,110 2,285 2,773 2,628 Ulla 2,628 Deferred Taxes 743 1,109 Deferred Taxes - Credit 1,109 Deferred Taxes - Debit Other Liabilities 1,322 Iuli, 486 Other Liabilities (excl. Deferred Income) 467 470 Deferred Income 901 1,202 1,447 739 836 Total Liabilities 11,277 13.252 13,563 14,154 16,078 Total Liabilities/Total Assets 149.29% 140.56% 116.85% 107.15% 88.05% 05% unul Common Equity (Total) (3,723) (3,824) (1,963) (951) Common Stock Par/Carry Value 1 Additional Paid-In Capital/Capital Surplus 9,063 9,130 9,173 9,189 Retained Earnings (5,895) (5,512) (3,291) (2,162) (480) Cumulative Translation Adjustment/Unrealized For. Exch. Gain (3) (3) (2) (83) 1 Other Appropriated Reserves (1,071) (1,549) (1,915) (2,028) (1,034) Treasury Stock (5,820) (5,891) (5,928) (5,949) (5,963) i Common Equity/Total Assets -49.29% -40.56% -16.91% -7.20% 9.52% Total Shareholders' Equity (3,723) (3,824) (1,963) (951) 1,739 Total Shareholders'Equity/Total Assets - 49.29% -40.56% -16.91% -7.20% 9.52% Accumulated Minority Interest 444 - - Total Equity (3,723) (3,824) (1,956) (945) 2,183 --- Liabilities & Shareholders' Equity 7,554 9,428 11,607 13,209 18,261 Fiscal year is February January. All values USD Thousands. 2018 2016 2015 2014 5-year trend 2017 (2,221,000.0) Net Income before Extraordinaries (383,000.0) (1,128,000.0) (1,810,000.0) (1,116,000.0) Net Income Growth 82.76% -96.90% 37.68% -62.19% Depreciation, Depletion & Amortization 292,000.0 355,000.0 419,000.0 581,000.0 732,000.0 Depreciation and Depletion 288,000.0 350,000.0 412,000.0 563,000.0 703,000.0 1 Amortization of Intangible Assets 4,000.0 5,000.0 7,000.0 18,000.0 29,000.0 1 Deferred Taxes & Investment Tax Credit (617,000.0) (151,000.0) (302,000.0) 116,000.0 279,000.0 -- 1 Deferred Taxes (617,000.0) (151,000.0) (302,000.0) 116,000.0 279,000.0 1 Other Funds (1,272,000.0) (197,000.0) (763,000.0) (694,000.0) 1 (1,117,000.0) Funds from Operations (1,980,000.0) (2,214,000.0) (1,774,000.0) (1,807,000.0) (1,222,000.0) Changes in Working Capital 138,000.0 833,000.0 (393,000.0) 420,000.0 113,000.0 Inventories 1,144,000.0 1,213,000.0 (229,000.0) 1,091,000.0 446,000.0 - _- Accounts Payable (472,000.0) (526,000.0) (47,000.0) (528,000.0) (230,000.0) Income Taxes Payable (108,000.0) 80,000.0 (95,000.0) (110,000.0) 63,000.0 Other Assets/Liabilities (426,000.0) 66,000.0 (22,000.0) (33,000.0) (166,000.0) - Net Operating Cash Flow (1,842,000.0) (1,381,000.0) (2,167,000.0) (1,387,000.0) (1,109,000.0) Net Operating Cash Flow Growth -33.38% 36.27% -56.24% -25.07% Net Operating Cash Flow/ Sales - 11.03% -6.24% -8.62% -4.45% -3.06% - - All values USD Thousands 2018 2016 2015 2017 (142,000.0) 2014 (329,000.0) 5-year trend 11--- Capital Expenditures (80,000.0) (211,000.0) (270,000.0) Capital Expenditures (Fixed Assets) (80,000.0) (142,000.0) (211,000.0) (270,000.0) (329,000.0) - - - Capital Expenditures Growth 43.66% 32.70% 21.85% 17.93% Capital Expenditures / Sales -0.48% -0.64% -0.84% -0.87% -0.91% Sale of Fixed Assets & Businesses 1,681,000.0 386,000.0 2,730,000.0 424,000.0 995,000.0 Other Uses (207,000.0) (2,000.0) Other Sources 293,000.0 380,000.0 Net Investing Cash Flow 1,894,000.0 244,000.0 2,519,000.0 327,000.0 664,000.0 Net Investing Cash Flow Growth 676.23% -90.31% 670.34% -50.75% Net Investing Cash Flow / Sales 11.34% 110% 10.02% 1.05% 1.83% All values USD Thousands. 2018 2017 2016 2015 2014 5-year trend Issuance/Reduction of Debt, Net (2.000.0) 1,185,000.0 (364,000.0) (199,000.0) 1,135,000.0 Change in Current Debt 271,000.0 (797,000.0) 583,000.0 (1,117,000.0) 238,000.0 Change in Long-Term Debt (273,000.0) 1,982,000.0 (947,000.0) 918,000.0 897,000.0 Issuance of Long-Term Debt 1,083,000.0 2,048,000.0 458,000.0 998,000.0 980,000.0 Reduction in Long-Term Debt (1,356,000.0) (66,000.0) (1,405,000.0) (80,000.0) (83,000.0) Other Funds 484,000.0 (233,000.0) Other Uses (31,000.0) (233,000.0) Other Sources 515,000.0 Net Financing Cash Flow (2,000.0) 1,185,000.0 (364,000.0) 285,000.0 902,000.0 --- Net Financing Cash Flow Growth -100.17% 425.55% -227.72% -68.40% Net Financing Cash Flow/ Sales -0.01% 535% -1.45% 0.91% 2.49% -- Exchange Rate Effect (3,000.0) (38,000.0) Net Change in Cash 50,000.0 48,000.0 (12,000.0) (778,000.0) 419,000.0 Free Cash Flow (1,922,000.0) (1,523,000.0) (2,378,000.0) (1,657,000.0) (1,438,000.0) Free Cash Flow Growth -26.20% 35.95% -43.51% -15.23% Free Cash Flow Yield - 761.52%