only question 2 about cash flow statement
I NEED ONLY QUESTION 2 about CFO, CFF AND CFI
The students must analize the 10K-report from Apple and Microsoft andget the following data: 1. Profit and Loss account in Euros and %, comparing both companies. Students must submit the P&L IFRS Template and they must also estimate in % the Gross Margin, EBIT and Net Income. 2. Cashflow statement, analysing and explaining the CFO, CF, CFF and cash generated in the fiscal year. 3. Undertake a company valuation using multiples valuation. The business metric used for the valuation of the company Operating Profit.EBIT. The multiples to be used will be: x7 (Average multiple used in company valuations) x9 (A good valution) x11 (A very good valuation). Students will get the Enteprise Value. Then, they must get the Net Financial Debt (NFD) as short term financial debt long term financial debt minus cash and cash equivalents. IF NFD is positive, it means that the company still has debt after using all the cash and acash equivalents available. In the NFD is negative, it means the company has excess of cash after paying all the financial debt. The value of the 100% equity value of shares, also know as fair, fundamental or intrinsic value) will be: Enterprise Value (EV)multiple'EBIT +/-NFD Intrinsic Value The intrinsic value will be compared with the stock market price market capitalization. If intrinsic value is bigger than market price, it means that the market undervalue the company value and we should buy. If the intrinsic value is lower than market value then the market is paying a higher price for a company that has less value (company overpriced Cashflow Statement Click to add text Cashflow Apple Micr CFO 77,434 52,185 CFF 87,876 36,887 16,066 15,773 Cash gene 181,376 104,845 CFI plember 29, 20.289 Years ended September 30, $ 20,484 September 24, 2016 24 21.120 59,531 48.351 45,687 10,903 10,157 5,340 4,840 (32,590) 5,966 (166) 10.505 4,210 4.534 48 (5,322) 828 (8,010) (423) 9,175 Cash and cash equivalents, beginning of the year Operating activities: Net income Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization Share-based compensation expense Deferred Income tax expense//benefit) Other Changes in operating assets and liabilities: Accounts receivable, net Inventories Vendor non-trade receivables Other current and non-current assets Accounts payable Deferred revenue Other current and non-current liabilities Cash generated by operating activities Investing activities: Purchases of marketable securities Proceeds from maturities of marketable securities Proceeds from sales of marketable securities Payments for acquisition of property, plant and equipment Payments made in connection with business acquisitions, net Purchases of non-marketable securities Proceeds from non-marketable securities Other Cash generated by/(used in) investing activitie (2,093) (2,723) (4.254) (5,318) 8.966 (626) 1.125 64 225 (44) 36,40 77,434 (71,356) 55,881 47,838 (13,313) (721) (1,871) 353 (159,486) 31,775 94,564 (12,451) (329) (142,42 21.2 90,5 (12,7 (521) 126 (124) (46,446) 16,066 669 555 (1874) (12 (2,527) (13,712) (72,738) 6,969 (6,500) Financing activitios: Proceeds from issuance of common stock Payments for taxes related to net share settlement of equity awards Payments for dividends and dividend equivalents Repurchases of common stock Proceeds from issuance of term debt, net Repayments of term debt Change in commercial paper, net Cash used in financing activities ncrease/(Decrease in cash and cash equivalents Cash and cash equivalents, end of the year Supplemental cash flow disclosure: Cash paid for income taxes, net Cash paid for interest (12.769) 32,900) 28,662 (3,500) 3,852 (17,974) CFF 197.976 5.044 25,913 (195) 20,289 $ $ 10,417 $ 3,022 $ 11,591 2,092 $ $ See accompanying Notes to Consolidated Financial Statements. Apple Inc. I 2018 Form 10-K 142 2018 39,240 $ $ 25,489 3.286 2652 (792) 16,463) (2.073) CASH FLOWS STATEMENTS in millions) Year Ended June 30. Operations Nit income Adjustments to reconcile net income to net cash from operations: Depreciation, amortization, and other Stock-based compensation expense Net recognized gains on investments and derivatives Deferred income taxes Changes in operating assets and liabilities Accounts receivable Inventories Other current assets Other long-term assets Accounts payable Uneamed revenue Income taxes Other current liabilities Otherapie Net cash from operations 16,571 10.261 3.940 (2.212) (5.143) 3,862) (465) 1952) (285) 1.148 5.922 18.183 2.8123 (1.216) 1.028 (917) (1.71 3.820 (1,834) 232 4,462 2.929 1,419 591 798 (20) (118) For 52,185 43, 884 39,507 (493 (7.922 (4,000) 1.142 (19,563) 113 8111 1675) (36,887) 1.324) 7.183 (10.060) 1.002 (10.721) (12,699) (971) (33,590) (11.788) (11,845) (190) 8.408 (8.129) d her as Financing Repayments of short-term debt, maturities of 90 days or less, net Proceeds from issuance of debt Repayments of debt Common stock issued Common stock repurchased Common stock asb dividends paid Other, net Net cash from (used in) financing Invest Additions to property and equipment Acquisition of companies, net of cash acquired and purchases of intangible Purchases of investments Maturities of investments Sales of investments Securitrending payable Net cash used in investito Effect of foreign exchange rates on cash and casheghalets at change in cash and cash equivalents Par o g period Cash and cash equivalents, end of period (13,925) (2,388) 157.597) 20.043 38,194 (11.632) (888) (137.380) 26,360 117.577 (98) (175.905 28.044 136.350 (197 (46.781 (FIXCARET V (15,773) (6.061) 2 (115) (590) 1.15 SV 11,946 11.356 $ 11,946 7.68 efer to accompanying notes. The students must analize the 10K-report from Apple and Microsoft andget the following data: 1. Profit and Loss account in Euros and %, comparing both companies. Students must submit the P&L IFRS Template and they must also estimate in % the Gross Margin, EBIT and Net Income. 2. Cashflow statement, analysing and explaining the CFO, CFI, CFF and cash generated in the fiscal year. 3. Undertake a company valuation using multiples valuation. The business metric used for the valuation of the company Operating Profit.EBIT. The multiples to be used will be: x7 (Average multiple used in company valuations) x9 (A good valution) x11 (A very good valuation). Students will get the Enteprise Value. Then, they must get the Net Financial Debt (NFD) as short term financial debt long term financial debt minus cash and cash equivalents. IF NFD is positive, it means that the company still has debt after using all the cash and acash equivalents available. In the NFD is negative, it means the company has excess of cash after paying all the financial debt. The value of the 100% equity value of shares, also know as fair, fundamental or intrinsic value) will be: Enterprise Value (EV) multiple'EBIT - NFD Intrinsic Value The intrinsic value will be compared with the stock market price market capitalization. If intrinsic value is bigger than market price, it means that the market undervalue the company value and we should buy. If the intrinsic value is lower than market value, then the market is paying a higher price for a company that has less value (company overpriced plember 29, 20.289 Years ended September 30, $ 20,484 September 24, 2016 24 21.120 59,531 48.351 45,687 10,903 10,157 5,340 4,840 (32,590) 5,966 (166) 10.505 4,210 4.534 48 (5,322) 828 (8,010) (423) 9,175 Cash and cash equivalents, beginning of the year Operating activities: Net income Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization Share-based compensation expense Deferred Income tax expense//benefit) Other Changes in operating assets and liabilities: Accounts receivable, net Inventories Vendor non-trade receivables Other current and non-current assets Accounts payable Deferred revenue Other current and non-current liabilities Cash generated by operating activities Investing activities: Purchases of marketable securities Proceeds from maturities of marketable securities Proceeds from sales of marketable securities Payments for acquisition of property, plant and equipment Payments made in connection with business acquisitions, net Purchases of non-marketable securities Proceeds from non-marketable securities Other Cash generated by/(used in) investing activitie (2,093) (2,723) (4.254) (5,318) 8.966 (626) 1.125 64 225 (44) 36,40 77,434 (71,356) 55,881 47,838 (13,313) (721) (1,871) 353 (159,486) 31,775 94,564 (12,451) (329) (142,42 21.2 90,5 (12,7 (521) 126 (124) (46,446) 16,066 669 555 (1874) (12 (2,527) (13,712) (72,738) 6,969 (6,500) Financing activitios: Proceeds from issuance of common stock Payments for taxes related to net share settlement of equity awards Payments for dividends and dividend equivalents Repurchases of common stock Proceeds from issuance of term debt, net Repayments of term debt Change in commercial paper, net Cash used in financing activities ncrease/(Decrease in cash and cash equivalents Cash and cash equivalents, end of the year Supplemental cash flow disclosure: Cash paid for income taxes, net Cash paid for interest (12.769) 32,900) 28,662 (3,500) 3,852 (17,974) CFF 197.976 5.044 25,913 (195) 20,289 $ $ 10,417 $ 3,022 $ 11,591 2,092 $ $ See accompanying Notes to Consolidated Financial Statements. Apple Inc. I 2018 Form 10-K 142 2018 39,240 $ $ 25,489 3.286 2652 (792) 16,463) (2.073) CASH FLOWS STATEMENTS in millions) Year Ended June 30. Operations Nit income Adjustments to reconcile net income to net cash from operations: Depreciation, amortization, and other Stock-based compensation expense Net recognized gains on investments and derivatives Deferred income taxes Changes in operating assets and liabilities Accounts receivable Inventories Other current assets Other long-term assets Accounts payable Uneamed revenue Income taxes Other current liabilities Otherapie Net cash from operations 16,571 10.261 3.940 (2.212) (5.143) 3,862) (465) 1952) (285) 1.148 5.922 18.183 2.8123 (1.216) 1.028 (917) (1.71 3.820 (1,834) 232 4,462 2.929 1,419 591 798 (20) (118) For 52,185 43, 884 39,507 (493 (7.922 (4,000) 1.142 (19,563) 113 8111 1675) (36,887) 1.324) 7.183 (10.060) 1.002 (10.721) (12,699) (971) (33,590) (11.788) (11,845) (190) 8.408 (8.129) d her as Financing Repayments of short-term debt, maturities of 90 days or less, net Proceeds from issuance of debt Repayments of debt Common stock issued Common stock repurchased Common stock asb dividends paid Other, net Net cash from (used in) financing Invest Additions to property and equipment Acquisition of companies, net of cash acquired and purchases of intangible Purchases of investments Maturities of investments Sales of investments Securitrending payable Net cash used in investito Effect of foreign exchange rates on cash and casheghalets at change in cash and cash equivalents Par o g period Cash and cash equivalents, end of period (13,925) (2,388) 157.597) 20.043 38,194 (11.632) (888) (137.380) 26,360 117.577 (98) (175.905 28.044 136.350 (197 (46.781 (FIXCARET V (15,773) (6.061) 2 (115) (590) 1.15 SV 11,946 11.356 $ 11,946 7.68 efer to accompanying notes. The students must analize the 10K-report from Apple and Microsoft andget the following data: 1. Profit and Loss account in Euros and %, comparing both companies. Students must submit the P&L IFRS Template and they must also estimate in % the Gross Margin, EBIT and Net Income. 2. Cashflow statement, analysing and explaining the CFO, CF, CFF and cash generated in the fiscal year. 3. Undertake a company valuation using multiples valuation. The business metric used for the valuation of the company Operating Profit.EBIT. The multiples to be used will be: x7 (Average multiple used in company valuations) x9 (A good valution) x11 (A very good valuation). Students will get the Enteprise Value. Then, they must get the Net Financial Debt (NFD) as short term financial debt long term financial debt minus cash and cash equivalents. IF NFD is positive, it means that the company still has debt after using all the cash and acash equivalents available. In the NFD is negative, it means the company has excess of cash after paying all the financial debt. The value of the 100% equity value of shares, also know as fair, fundamental or intrinsic value) will be: Enterprise Value (EV)multiple'EBIT +/-NFD Intrinsic Value The intrinsic value will be compared with the stock market price market capitalization. If intrinsic value is bigger than market price, it means that the market undervalue the company value and we should buy. If the intrinsic value is lower than market value then the market is paying a higher price for a company that has less value (company overpriced Cashflow Statement Click to add text Cashflow Apple Micr CFO 77,434 52,185 CFF 87,876 36,887 16,066 15,773 Cash gene 181,376 104,845 CFI plember 29, 20.289 Years ended September 30, $ 20,484 September 24, 2016 24 21.120 59,531 48.351 45,687 10,903 10,157 5,340 4,840 (32,590) 5,966 (166) 10.505 4,210 4.534 48 (5,322) 828 (8,010) (423) 9,175 Cash and cash equivalents, beginning of the year Operating activities: Net income Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization Share-based compensation expense Deferred Income tax expense//benefit) Other Changes in operating assets and liabilities: Accounts receivable, net Inventories Vendor non-trade receivables Other current and non-current assets Accounts payable Deferred revenue Other current and non-current liabilities Cash generated by operating activities Investing activities: Purchases of marketable securities Proceeds from maturities of marketable securities Proceeds from sales of marketable securities Payments for acquisition of property, plant and equipment Payments made in connection with business acquisitions, net Purchases of non-marketable securities Proceeds from non-marketable securities Other Cash generated by/(used in) investing activitie (2,093) (2,723) (4.254) (5,318) 8.966 (626) 1.125 64 225 (44) 36,40 77,434 (71,356) 55,881 47,838 (13,313) (721) (1,871) 353 (159,486) 31,775 94,564 (12,451) (329) (142,42 21.2 90,5 (12,7 (521) 126 (124) (46,446) 16,066 669 555 (1874) (12 (2,527) (13,712) (72,738) 6,969 (6,500) Financing activitios: Proceeds from issuance of common stock Payments for taxes related to net share settlement of equity awards Payments for dividends and dividend equivalents Repurchases of common stock Proceeds from issuance of term debt, net Repayments of term debt Change in commercial paper, net Cash used in financing activities ncrease/(Decrease in cash and cash equivalents Cash and cash equivalents, end of the year Supplemental cash flow disclosure: Cash paid for income taxes, net Cash paid for interest (12.769) 32,900) 28,662 (3,500) 3,852 (17,974) CFF 197.976 5.044 25,913 (195) 20,289 $ $ 10,417 $ 3,022 $ 11,591 2,092 $ $ See accompanying Notes to Consolidated Financial Statements. Apple Inc. I 2018 Form 10-K 142 2018 39,240 $ $ 25,489 3.286 2652 (792) 16,463) (2.073) CASH FLOWS STATEMENTS in millions) Year Ended June 30. Operations Nit income Adjustments to reconcile net income to net cash from operations: Depreciation, amortization, and other Stock-based compensation expense Net recognized gains on investments and derivatives Deferred income taxes Changes in operating assets and liabilities Accounts receivable Inventories Other current assets Other long-term assets Accounts payable Uneamed revenue Income taxes Other current liabilities Otherapie Net cash from operations 16,571 10.261 3.940 (2.212) (5.143) 3,862) (465) 1952) (285) 1.148 5.922 18.183 2.8123 (1.216) 1.028 (917) (1.71 3.820 (1,834) 232 4,462 2.929 1,419 591 798 (20) (118) For 52,185 43, 884 39,507 (493 (7.922 (4,000) 1.142 (19,563) 113 8111 1675) (36,887) 1.324) 7.183 (10.060) 1.002 (10.721) (12,699) (971) (33,590) (11.788) (11,845) (190) 8.408 (8.129) d her as Financing Repayments of short-term debt, maturities of 90 days or less, net Proceeds from issuance of debt Repayments of debt Common stock issued Common stock repurchased Common stock asb dividends paid Other, net Net cash from (used in) financing Invest Additions to property and equipment Acquisition of companies, net of cash acquired and purchases of intangible Purchases of investments Maturities of investments Sales of investments Securitrending payable Net cash used in investito Effect of foreign exchange rates on cash and casheghalets at change in cash and cash equivalents Par o g period Cash and cash equivalents, end of period (13,925) (2,388) 157.597) 20.043 38,194 (11.632) (888) (137.380) 26,360 117.577 (98) (175.905 28.044 136.350 (197 (46.781 (FIXCARET V (15,773) (6.061) 2 (115) (590) 1.15 SV 11,946 11.356 $ 11,946 7.68 efer to accompanying notes. The students must analize the 10K-report from Apple and Microsoft andget the following data: 1. Profit and Loss account in Euros and %, comparing both companies. Students must submit the P&L IFRS Template and they must also estimate in % the Gross Margin, EBIT and Net Income. 2. Cashflow statement, analysing and explaining the CFO, CFI, CFF and cash generated in the fiscal year. 3. Undertake a company valuation using multiples valuation. The business metric used for the valuation of the company Operating Profit.EBIT. The multiples to be used will be: x7 (Average multiple used in company valuations) x9 (A good valution) x11 (A very good valuation). Students will get the Enteprise Value. Then, they must get the Net Financial Debt (NFD) as short term financial debt long term financial debt minus cash and cash equivalents. IF NFD is positive, it means that the company still has debt after using all the cash and acash equivalents available. In the NFD is negative, it means the company has excess of cash after paying all the financial debt. The value of the 100% equity value of shares, also know as fair, fundamental or intrinsic value) will be: Enterprise Value (EV) multiple'EBIT - NFD Intrinsic Value The intrinsic value will be compared with the stock market price market capitalization. If intrinsic value is bigger than market price, it means that the market undervalue the company value and we should buy. If the intrinsic value is lower than market value, then the market is paying a higher price for a company that has less value (company overpriced plember 29, 20.289 Years ended September 30, $ 20,484 September 24, 2016 24 21.120 59,531 48.351 45,687 10,903 10,157 5,340 4,840 (32,590) 5,966 (166) 10.505 4,210 4.534 48 (5,322) 828 (8,010) (423) 9,175 Cash and cash equivalents, beginning of the year Operating activities: Net income Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization Share-based compensation expense Deferred Income tax expense//benefit) Other Changes in operating assets and liabilities: Accounts receivable, net Inventories Vendor non-trade receivables Other current and non-current assets Accounts payable Deferred revenue Other current and non-current liabilities Cash generated by operating activities Investing activities: Purchases of marketable securities Proceeds from maturities of marketable securities Proceeds from sales of marketable securities Payments for acquisition of property, plant and equipment Payments made in connection with business acquisitions, net Purchases of non-marketable securities Proceeds from non-marketable securities Other Cash generated by/(used in) investing activitie (2,093) (2,723) (4.254) (5,318) 8.966 (626) 1.125 64 225 (44) 36,40 77,434 (71,356) 55,881 47,838 (13,313) (721) (1,871) 353 (159,486) 31,775 94,564 (12,451) (329) (142,42 21.2 90,5 (12,7 (521) 126 (124) (46,446) 16,066 669 555 (1874) (12 (2,527) (13,712) (72,738) 6,969 (6,500) Financing activitios: Proceeds from issuance of common stock Payments for taxes related to net share settlement of equity awards Payments for dividends and dividend equivalents Repurchases of common stock Proceeds from issuance of term debt, net Repayments of term debt Change in commercial paper, net Cash used in financing activities ncrease/(Decrease in cash and cash equivalents Cash and cash equivalents, end of the year Supplemental cash flow disclosure: Cash paid for income taxes, net Cash paid for interest (12.769) 32,900) 28,662 (3,500) 3,852 (17,974) CFF 197.976 5.044 25,913 (195) 20,289 $ $ 10,417 $ 3,022 $ 11,591 2,092 $ $ See accompanying Notes to Consolidated Financial Statements. Apple Inc. I 2018 Form 10-K 142 2018 39,240 $ $ 25,489 3.286 2652 (792) 16,463) (2.073) CASH FLOWS STATEMENTS in millions) Year Ended June 30. Operations Nit income Adjustments to reconcile net income to net cash from operations: Depreciation, amortization, and other Stock-based compensation expense Net recognized gains on investments and derivatives Deferred income taxes Changes in operating assets and liabilities Accounts receivable Inventories Other current assets Other long-term assets Accounts payable Uneamed revenue Income taxes Other current liabilities Otherapie Net cash from operations 16,571 10.261 3.940 (2.212) (5.143) 3,862) (465) 1952) (285) 1.148 5.922 18.183 2.8123 (1.216) 1.028 (917) (1.71 3.820 (1,834) 232 4,462 2.929 1,419 591 798 (20) (118) For 52,185 43, 884 39,507 (493 (7.922 (4,000) 1.142 (19,563) 113 8111 1675) (36,887) 1.324) 7.183 (10.060) 1.002 (10.721) (12,699) (971) (33,590) (11.788) (11,845) (190) 8.408 (8.129) d her as Financing Repayments of short-term debt, maturities of 90 days or less, net Proceeds from issuance of debt Repayments of debt Common stock issued Common stock repurchased Common stock asb dividends paid Other, net Net cash from (used in) financing Invest Additions to property and equipment Acquisition of companies, net of cash acquired and purchases of intangible Purchases of investments Maturities of investments Sales of investments Securitrending payable Net cash used in investito Effect of foreign exchange rates on cash and casheghalets at change in cash and cash equivalents Par o g period Cash and cash equivalents, end of period (13,925) (2,388) 157.597) 20.043 38,194 (11.632) (888) (137.380) 26,360 117.577 (98) (175.905 28.044 136.350 (197 (46.781 (FIXCARET V (15,773) (6.061) 2 (115) (590) 1.15 SV 11,946 11.356 $ 11,946 7.68 efer to accompanying notes
