need help with required 1-2. appendix a at the bottom.
AA 07-2 Comparative Analysis LO PI Companies often budget selling expenses and general and administrative expenses (SGA) as a percentage of expected sales Required: 1. For both Apple and Google, list sales (in dollars) and total selling expenses and general and administrative expenses (in dollars) for the 2017 and 2016 fiscal years. Use the financial statements in Appendix A. 2. Compute each company's ratio of total selling expenses and general and administrative expenses to sales for each of the two years. 3. Which company (Apple or Google) spends more, as a percent of sales, on selling general, and adminsitrative expenses? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 For both Apple and Google, list sales (in dollars) and total selling expenses and general and administrative expenses (in dollars) for the 2017 and 2016 fiscal years. Use the financial statements in Appendix A. Apple Google 2017 2016 2017 2016 Sales SGA 3. Which company (Apple or Google) spends more, as a percent of sales, on selling, general, and adminsitrative expenses? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute each company's ratio of total selling expenses and general and administrative expenses to sales for each of the two years. (Round your answers to 2 decimal places.) Apple Google 2017 2016 2017 2016 Ratio % September 24, 2016 s Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 30, 2017 ASSETS Current assets Cash and cash equivalents 20.289 Short-term marketable securities 53,892 Accounts receivable, less allowances of $58 and 853, respectively 17,874 Inventories 4,855 Vendor non-trade receivables 17.799 Other current assets 13.936 Total current assets 128.645 Long-term marketable securities 194,714 Property, plant and equipment, net 33.783 Goodwill 5.717 Acquired intangible assets, net 2.298 Other non-current assets 10.162 Total assets 375.319 20.484 46,671 15.754 2,132 13545 8,283 106,869 170,430 27.010 5.414 3.206 8.757 321.686 5 LIABILITIES AND SHAREHOLDERS' EQUITY S 37.294 22,027 8.080 Current liabilities Accounts payable Accrued expenses Deferred revenue Commercial paper Current portion of long-term debt Total current liabilities Deferred revenue, non-current Long-term debt Other non-current liabilities 49.049 25.744 7.548 1077 6,496 10,814 2.836 17.207 10.415 8.105 3.500 79,00 2030 36,07 9 Sunny 49.049 25,744 7,548 11,977 6,496 100,814 2,836 97,207 40,415 241,272 37,294 22,027 8,080 8,105 3,500 79,006 2,930 75,427 36,074 193.437 Accounts payable Accrued expenses Deferred revenue Commercial paper Current portion of long-term debt Total current liabilities Deferred revenuc, non-current Long-term debt Other non-current liabilities Total liabilities Commitments and contingencies Shareholders' equity Common stock and additional paid-in capital, 50.0001 par value: 12,600,000 shares authorized: 5,126,201 and 5.336,166 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income (loxx) Total shareholders' equity Total liabilities and shareholders' equity See accompanying Notes to Consolidated Financial Statements. 35,867 98.330 (150) 134.047 375,319 31.251 96,364 634 128.249 321.686 September 26, 2015 S 233,715 140,089 93,626 Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) Years ended September 30, 2017 September 24, 2016 Net sales 229,234 $ 215.639 Cost of sales 141.048 131,376 Gross margin 88.186 84,263 Operating expenses Research and development 11,581 10,045 Selling, general and administrative 15,261 14.194 Total operating expenses 26,842 24,239 Operating income 61.344 60,024 Other income (expense), net 2,745 1.348 Income before provision for income taxes 64,089 61,372 Provision for income taxes 15.738 15,685 Net income 48,351 45,687 8,067 14,329 22.396 71.230 1.285 72,515 19.121 53,394 S s 9.28 9.22 Earnings per share: Basic 9.27 8.35 Diluted 9.21 8.31 Shares used in computing carnings per share: Basic 5.217.242 5.470,820 Diluted 5.251.692 5.500,281 Cash dividends declared per share 5 2.40 2.18 See accompanying Notes to Consolidated Financial Statements. 5.753.421 5,793,069 J.98 $ Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME In millions September 30, 2017 September 24, 2016 S 18.351 5687 September 26, 2015 53.194 S Years ended Nct income CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) Years ended September 30, 2017 September 24, 2016 September 26, 2015 Net income $ 48,351 45,687 53,394 Other comprehensive income (oss): Change in foreign currency translation, net of tax effects of $(77), 58 and 5201, respectively 224 75 (411) Change in unrealised gains/losses on derivative instruments Change in fair value of derivatives, net of tax benefit (expense) of $(478), S(7) and S(441), respectively 1.315 7 2.905 Adjustment for net (gains) losses realized and included in net income, net of tax expense (bencfit) of $475, 5131 and 5630, respectively (1.477) (741) (3.497) Total change in unrealized gains/losses on derivative instruments, net of tax (162) (734) (592) Change in unrealized gains/losses on marketable securities Change in fair value of marketable securities, net of tax benefit (expense) of $425, 5(863) and $264, respectively (782) 1.582 (483) Adjustment for net (gains) fosse realized and included in net income net of tax expense (benefit of $35. $(31)and S(32), respectively (64) 56 59 Total change in unrealized gaindlosses on marketable securities, net of tax (846) 1.638 (424) Total other comprehensive income (los) (784) 979 1.427) Total comprehensive income 47-567 S 46,666 5 51.967 See accompanying Notes to consolidated Financial Statements Apple Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In millions, except number of shares which are reflected in thousands) Accumulated Other Common Stock and Comprehensive Total Additional Paid-In Capital Retained Income Shareholders Shares Amount Earnings (Loss) Equity Balances as of September 27, 2014 5.866,161 S 23,313 S 87,1525 1,082 S 111.547 Net income 53,394 53,394 Other comprehensive income (loss) (1.427) (1,427) Dividends and dividend equivalents declared (11,627) (11,627) Repurchase of common stock (325,032) (36,026) (36,026) Share-based compensation 3,586 3,586 Common stock issued, net of shares withheld for employee taxes 37.624 (231) (609) (840) Tax benefit from equity awards, including transfer pricing adjustments 748 748 Balances as of September 26, 2015 5,578,7535 27.416 5 92.284 5 (345) S 119.355 Net income 45,687 45,687 Other comprehensive income (loss) 979 979 Dividends and dividend equivalents declared (12.188) (12.188) Repurchase of common stock (279.009) (29,000 (29.000) Share-based compensation 4,262 4,262 Common stock issued, net of shares withheld for employee taxes 37.022 (806) (419) (1.225) Tax benefit from cquity awards, including trandfer pricing adjustments 379 379 Balances as of September 24, 2016 5,336,166 S 31.3515 96,364 5 6345 128.249 Net income 48,351 48,351 Other comprehensive income (los) (784) (784) Dividends and dividend equivalent declared (12.803 (12.803) Repurchase of common stock 216,196 (33.001 (33.001) Share based compensation 4.909 4,909 Common stock issued, net of shares withheld 379 634 $ (784) Tax benefit from equity awards, including transfer pricing adjustments 379 Balances as of September 24, 2016 5,336,166 S 31,251 $ 96,364 S Net income 48,351 Other comprehensive income (loss) Dividends and dividend equivalents declared (12,803) Repurchase of common stock (246,496) (33,001) Share-based compensation 4,909 Common stock issued, net of shares withheld for employee taxes 36,531 (913) (581) Tax benefit from equity awards, including transfer pricing adjustments 620 Balances as of September 30, 2017 5,126,201 35,867 98,330 $ See accompanying Notes to Consolidated Financial Statements 128,249 48,351 (784) (12,803) (33,001) 4.909 (1,494) 620 134,047 (150) S UU September 26, 2015 $ 13,844 53,394 4,840 11.257 3,586 1.382 385 Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) Years ended September 30, 2017 September 24, 2016 Cash and cash equivalents, beginning of the year $ 20,484 $ 21,120 Operating activities Net income 48,351 45,687 Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization 10,157 10.505 Share-based compensation expense 4,210 Deferred income tax expense 5.966 4,938 Other (166) 486 Changes in operating assets and liabilities: Accounts receivable, net (2,093) 527 Inventories (2.723) 217 Vendor non-trade receivables (4.254) (51) Other current and non-current assets (5.318) 1.055 Accounts payable 9.618 1,837 Deferred revenue (626) (1.554) Other current and non-current liabilities (154 (2.033) Cash generated by operating activities 63.598 65,824 Investing activities: Purchases of marketable securities (159.486) (142.428) Proceeds from maturities of marketable securities 31.775 21.258 Proceeds from sales of marketable securities 94364 90.536 Payments made in connection with business acquisitions, net (329) (297) Payments for acquisition of property, plant and equipment 12.451) (12.734) Payments for acquisition of intangible assets (344) (814) Payments for strategic investments, net (193) (1.388 Other 220 (110) Cash used in investing activities (40.63 (45.977 Financing activities Proceeds from cance of common stock 195 92'F Sunny 417 (238) (3.735) (283) 5,001 1.042 0.058 81.266 (166,402) 14,538 107,447 (343) (11.247) (241) (26 56.274) 53 355 C
