Throughout this course, you have researched a wealth of data and analytics to construct a comprehensive financial analysis and proposal (excluding tables, figures, and addenda) of a chosen company following the nine-step assessment process detailed in Assessing a Company's Future Financial Health.

There are three parts to the final component assignment of the Benchmark - Financial Analysis and Proposal.

Part One

Apply the final two steps of the nine-step assessment process detailed in Assessing A Company?s Future Financial Health (i.e., Step 8: Stress Testing and Step 9: Financing and Operating Plan for Current Year) to compose further assessment of the company/competitor pairing analysis as below:

1. Perform stress testing under scenarios of likely adversity and value your firm using appropriate valuation techniques on the pro forma financial data analysis you constructed earlier in the course.
2. Compare your results from step #1 against the current stock price of your chosen company and competitor. Construct an argument in favor of investing in either the chosen company, or the competitor, with sufficient supportive detail and/or data to make your case.

Part Two

Access the three prior component assignments, with instructor feedback incorporated, that you submitted in Topics 2, 4, and 6. Integrate these three assignments into the final Benchmark - Financial Analysis and Proposal submission along with the Component 4 assignment in this topic (Part One) to provide a comprehensive analysis inclusive of all nine steps that flows from start to finish. Note: You may need to re-write certain sections or statements in order to provide a cohesive flow to your submission. Assume this is a real-world proposal you will be presenting and revise or "polish" your work accordingly.

Part Three

Develop a 250-word "introduction" to your analysis and proposal that can serve as an overview in the event that you do present this to a single or group of potential investors. Consider factors that might impede an individual?s ability to focus on the information, and present only key and other potentially relevant points this individual or group needs to know.

Prepare this assignment according to the guidelines found in the APA Style Guide, located in the Student Success Center. An abstract is not required.

This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.

You are required to submit this assignment to Turnitin. Please refer to the directions in the Student Success Center.

Running Head: APPLE INC. AND MICROSOFT CORPORATION'S 1 Apple Inc. and Microsoft Corporation's Financial Analysis David G Medina Ortiz Grand Canyon University FIN-650 Managerial Finance July 7, 2016 Running Head: APPLE INC. AND MICROSOFT CORPORATION'S 2 Table of Content: Succinct Comparative Analysis for Apple Inc. and Microsoft Corporation..............................3 Rationale Choice on Equity Valuation Model............................................................................6 Financial Ratio Analysis............................................................................................................7 Financial Ratios......................................................................................................................7 Chart for Ratio Analysis Comparision...................................................................................8 References................................................................................................................................10 Appendix..................................................................................................................................11 Income Statement.................................................................................................................11 Balance Sheet.......................................................................................................................13 Cash Flow Statement............................................................................................................14 [Type here] Running Head: APPLE INC. AND MICROSOFT CORPORATION'S 3 Succinct Comparative Analysis for Apple Inc. and Microsoft Corporation Apple Inc. and Microsoft Corporation's (SEC) 10-K reports based yet succinct comparative analysis, (Apple Inc.: Form 10-K, and Microsoft Corporation: Form 10-K): Criterion siness overall Selected Company Apple Inc. Chosen Competitor Company Microsoft Corporation Computer electronics, computer software, smart Computer software, consumer electronics, devices, and online services, oducts & services personal computers, smartphone devices, computer electronics, computer software, smart services. devices, online services, etc. stomers High to mid-scale Mid, and low-scale Create and offer innovative computing Company is ambitious to reach at $400 technology products and recycle most of the billion revenue in next ten years, focusin products to minimize the costing as well as make research and technology to meet the environmental sustainable devices consumer's goals around the world. als Generic Strategies that further divided into Competitive strategies that concerned wi growth, globalization, and retrenchment ategies selling goods and product differentiation strategies that belong to product design and target the consumers. development innovation. rket Positions Apple's market position is at top but in last year Microsoft placed at top place in its overa (almost 50% in 2015), they have seen large profits but there is huge decline in its declined in its smartphone sales but its overall [Type here] Running Head: APPLE INC. AND MICROSOFT CORPORATION'S 4 revenue was at top place. smartphone business. Company may face intense competition across all markets that may lead to lower revenue or operating margins. Company has become more focused abou services and now presents execution but it Due to global and regional economic conditions may possible to see some competitive risk company could see materially adversely affect. Making continuous investment in research Due to continuous change in technology and neral risk factors and development. trends company may see some decline in market. For instance, they already faced minimal selling Due to continuous acquisitions, joint for its smartphone in 2015, it has happened due ventures, and strategic alliances company to downgrade in its China sale. may see some adverse effect. Intellectual property rights may impact its revenue since they have less intellectual property rights on its products. antitative and qualitative Company may face high interest rates and Foreign currency and interest rate similar rk risk factors inflation in foreign currency risk which may like Apple Inc. increase the products and services costing that would directly impact to company's business. Equity that consist of global, developed a emerging markets i.e. credit risk. [Type here] Running Head: APPLE INC. AND MICROSOFT CORPORATION'S 5 Board-based commodity exposure to enhance portfolio returns but it may diffi to correlate with global indices Major competitors Apple Inc. and Google mpetitors Samsung Electronics and Microsoft Corp. Inc. Computer Software-OS and related produ mpetitive technology Smartphone and computing products and consumer electronics Similar to Apple Inc. There is few more government litigation and regulatory activities that limit company's business. Company manages its business under laws and regulations which are standardized worldwide, gulatory considerations changes to any law adversely impact to the company business. There is potential liability under trade protection, anti-corruption, and other laws and regulations. Company has unidirectional business operations Microsoft has diversified its work operati and it operates around the world and due this, erating characteristics and gaining over the market by minimizi Apple puts high costing in managing its the operational costs. operations. Rationale Choice on Equity Valuation Model For Apple Inc., I think two stage Free-Cash-Flow-to-Equity (FCFE) and Discounted[Type here] Running Head: APPLE INC. AND MICROSOFT CORPORATION'S 6 Cash-Flow (DCF) would be good since Apple has very low debt and there is lot of product introductions, innovation, and research & development (R & D); that shows company look for long-term benefits and find consistency in its growth strategy with steady growth rate. Also, R&D has always capitalized at higher level and company spend significant amount in its R&D, James R. Hitchnera (2006). Few assumptions to build the model are as follows: Based on above inputs, output would be like as: Financial Ratio Analysis Apple Inc. and Microsoft Corporation's financial ratio analysis results are as follows (Apple Inc. (AAPL)-NasdaqGS, & Microsoft Corporation (MSFT)-NasdaqGS): Financial Ratios [Type here] Running Head: APPLE INC. AND MICROSOFT CORPORATION'S 7 Apple Inc. Liquidity Ratios Current Ratio Quick Ratio Cash Ratio Profitability Ratios Gross Margin Operating Margin Pre-Tax Margin Profit Margin Pre-Tax ROE (Return on Equity) After Tax ROE (Return on Equity) (From FY-2015, Microsoft Corporation In %) (From FY-2015, In %) 111 108 52 250 244 194 40 30 31 23 61 65 19 20 13 23 45 15 Chart for Ratio Analysis Comparision 300 250 200 150 100 50 Apple Inc._x000d_(From FY-2015, In %) Microsoft Corporation (From FY-2015, In %) 0 In last fiscal year, Apple Inc. has increased its overall sales that were mainly driven by its iPhone products and company saw decrement in its Mac and other products sale. Company had increased its operating segment in China, and it resulted as strong growth in Greater China where in a year net sale increased by 84%. [Type here] Running Head: APPLE INC. AND MICROSOFT CORPORATION'S 8 Current Ratio shows that Apple Inc. has good liquidity to pay off the shortterm liabilities i.e. increased by 111% but Microsoft has been continuously making more growth and exhibits high current ratio means a strong short-term liabilities payoff. Quick Ratio: Apple Inc. has good liquidity to free flow in market i.e. 108% and can make strategies for future aspects but Microsoft has more liquidity to explore more in market. Cash Ratio: Microsoft is stronger in liquid assets and increased its current liabilities while Apple Inc. has good enough but it's quite lesser than Microsoft. Gross Margin: Apple has increased its gross margin by this year but still lesser than Microsoft and its due to Apple's unidirectional operational strategies and Apple is very much concerned about it and continuously improving its operational strategies and making it stronger to minimize the operating costs. Operating Margin: Company has been continuously opening its new development centers in most economical nations in order to minimize the costing and Chinese center helped to make good operational margin but still they have been finding more effective options to reduce the product costs while Microsoft didn't make strategic changes in its operations and kept at same level of profit through operations. Profit Margin: In last year, Apple has made high profits due to its increased sales and operational cost reduction. Microsoft also made good profits but lesser than Apple since they have been following the same strategies. Return on Equity (ROE): Apple has good number of dividends and shareholders and company always prefer to share high portion of its profits with shareholders so that they could take interest to invest more and strengthen the company market capitalization while Microsoft is less focused to share its high margin with [Type here] Running Head: APPLE INC. AND MICROSOFT CORPORATION'S 9 shareholders. [Type here] Running Head: APPLE INC. AND MICROSOFT CORPORATION'S 10 References Apple Inc.: Form 10-K. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549. Retrieved 06, July 2016 fromhttps://www.sec.gov/Archives/edgar/data/320193/000119312515356351/d17062d10k. htm#toc17062_11 Apple Inc. (AAPL)-NasdaqGS. Yahoo Finance. Retrieved 06, July 2016 fromhttps://finance.yahoo.com/q?s=AAPL James R. Hitchnera (2006). Financial Valuation: Applications and Models. USA: Wiley Finance. ISBN 0-471-76117-6. Microsoft Corporation: Form 10-K. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549. Retrieved 06, July 2016 fromhttps://www.sec.gov/Archives/edgar/data/789019/000119312515272806/d918813d10 k.htm#tx918813_11 Microsoft Corporation (MSFT)-NasdaqGS. Yahoo Finance. Retrieved 06, July 2016 fromhttps://in.finance.yahoo.com/q?s=MSFT [Type here] Running Head: APPLE INC. AND MICROSOFT CORPORATION'S 11 Appendix Apple Inc. and Microsoft Corporation's financial statements (FY-2015): Income Statement Period Total Revenue Cost of Revenue Apple Inc. (FY2015, in $) 233715000.00 140089000.00 Microsoft Corporation (FY-2015, in $) 93580000 33,038,000 Gross Profit 93,626,000 60,542,000 8,067,000 12,046,000 14,329,000 - 20,324,000 10,011,000 - - - 71,230,000 18,161,000 1,285,000 346,000 72,515,000 72,515,000 19,121,000 - 18,507,000 18,507,000 6,314,000 - 53,394,000 12,193,000 Operating Expenses Research Development Selling General and Administrative Non Recurring Others Total Operating Expenses Operating Income or Loss Income from Continuing Operations Total Other Income/Expenses Net Earnings Before Interest And Taxes Interest Expense Income Before Tax Income Tax Expense Minority Interest Net Income From Continuing Ops [Type here] unning Head: APPLE INC. AND MICROSOFT CORPORATION'S 12 Non-recurring Events Discontinued Operations Extraordinary Items Effect Of Accounting Changes Other Items Net Income Preferred Stock And Other Adjustments Net Income Applicable To Common Shares - - - - 53,394,000 12,193,000 - - 53,394,000 12,193,000 Balance Sheet Apple Inc. (FY2015, in $) Period Assets Current Assets Cash And Cash Equivalents Short Term Investments Net Receivables Inventory Other Current Assets Total Current Assets Long Term Investments Property Plant and Equipment Goodwill Intangible Assets Accumulated Amortization Other Assets Deferred Long Term Asset Charges [Type here] Microsoft Corporation (FY-2015, in $) 21120000.00 5,595,000 20481000.00 35889000.00 2349000.00 9539000.00 90,931,000 19,823,000 2,902,000 5,461,000 89378000.00 124,712,000 164065000.00 12,053,000 22,471,000 5,116,000 3,893,000 14,731,000 16,939,000 4,835,000 5,556,000 2,953,000 - - Running Head: APPLE INC. AND MICROSOFT CORPORATION'S 13 Total Assets 290479000.00 176,223,000 60,671,000 12,385,000 10,999,000 7,484,000 8,940,000 29,989,000 80610000.00 53,463,000 33,427,000 49,858,000 27,808,000 13,544,000 3,624,000 - 4,930,000 - 171124000.00 96,140,000 - - 27,416,000 92,284,000 - 68,465,000 9,096,000 - Liabilities Current Liabilities Accounts Payable Short/Current Long Term Debt Other Current Liabilities Total Current Liabilities Long Term Debt Other Liabilities Deferred Long Term Liability Charges Minority Interest Negative Goodwill Total Liabilities Stockholders' Equity Misc Stocks Options Warrants Redeemable Preferred Stock Preferred Stock Common Stock Retained Earnings Treasury Stock Capital Surplus Other Stockholder Equity -345000.00 2,522,000 Total Stockholder Equity 119,355,000 80,083,000 Net Tangible Assets 110,346,000 58,309,000 Cash Flow Statement Period Net Income [Type here] Apple Inc. (FY2015, in $) 53,394,000 Microsoft Corporation (FY2015, in $) 12,193,000 Running Head: APPLE INC. AND MICROSOFT CORPORATION'S 14 Operating Activities, Cash Flows Provided By or Used In Depreciation Adjustments To Net Income Changes In Accounts Receivables Changes In Liabilities Changes In Inventories Changes In Other Operating Activities Total Cash Flow From Operating Activities Investing Activities, Cash Flows Provided By or Used In Capital Expenditures Investments Other Cash flows from Investing Activities Total Cash Flows From Investing Activities Financing Activities, Cash Flows Provided By or Used In Dividends Paid Sale Purchase of Stock Net Borrowings Other Cash Flows from Financing Activities Total Cash Flows From Financing Activities Effect Of Exchange Rate Changes Change In Cash and Cash Equivalents [Type here] 11,257,000 4,968,000 5,957,000 9,417,000 -3124000.00 15,188,000 -238000.00 1,456,000 -79000.00 -272000.00 -179000.00 408,000 81,266,000 29,080,000 -11247000.00 -44417000.00 -5944000.00 -12868000.00 -610000.00 -4189000.00 -56274000.00 -23001000.00 -11561000.00 -34710000.00 29,305,000 -9882000.00 -13809000.00 13,661,000 -1499000.00 362,000 -17716000.00 -9080000.00 - -73000.00 7,276,000 -3074000.00 Running Head: APPLE INC. AND MICROSOFT CORPORATION'S Apple Inc. and Microsoft Corporation's Financial Analysis David G Medina Ortiz Grand Canyon University FIN-650 Managerial Finance July 20, 2016 1 Running Head: APPLE INC. AND MICROSOFT CORPORATION'S 2 Table of Content: Management Discussion & Proforma Financial Statements.................................................................3 Current Strategies and Relevant Future.................................................................................................5 Ratio Analysis.......................................................................................................................................5 References.............................................................................................................................................9 Appendix.............................................................................................................................................10 Income Statement...........................................................................................................................10 Balance Sheet..................................................................................................................................11 Cash Flow Statement.......................................................................................................................12 [Type here] Running Head: APPLE INC. AND MICROSOFT CORPORATION'S 3 Management Discussion & Proforma Financial Statements In fiscal 2015, Apple Inc. has risen its net sale up to 28% i.e. $50.9 billion that comparatively high while looking into the results from earlier fiscal years. Apple has profound its market in iPhone selling and expand its operating segment in the worldwide range. Additionally, company has also progressed in Mac, services, and other products sale. Moreover, Apple launched Apple Watch that also helped to expand its business and accounted more than 100% of the year-by-year growth. Company has significant market in Great China that helped them to raise its sales in China by 84%. Company has been also working to increase its capital return program by putting its efforts on the program and raised over $200 billion through March 2017, Apple Inc.: Form 10-K. Microsoft has proved itself as market leader in computing services and continue growing in the cloud and products offerings. Additionally, Office 365 is its biggest product and its commercial seat grew by 74% and Office 365 has installed in many of the premium workforces and they have more than 50,000 small and medium-sized business customers each month. Company's service products increased its revenue by 9% by growth across the cloud and on-premises server products. Its Azure product has also helped to strengthen its market with more than 17,000 Enterprise Mobility Services customers. Hence based on the above analysis major calculations in below pro-forma statements, James R. Hitchnera (2006): Key Forecasting: Apple Inc. Pro-Forma Statement 2016 Sales Operating income(EBITDA) Operating profit (EBIT) Net income P/E ratio [Type here] 2017 2018 2019 2020 295371.1 2 215213 223766 238568 269016.2 5 71414 74027 77889 89267.5 97715.64 60096 45908 12.2 62366 47782 11.2 66601 51067 10.1 75120 57385 15.25 82323.12 63072.24 14.784 Running Head: APPLE INC. AND MICROSOFT CORPORATION'S EPS ( $ ) Dividend per Share ( $ ) 4 8.22 8.9 9.89 10.275 11.748 2.2 2.34 2.46 2.75 3.0888 Yield 2.20% 2.35% 2.46% 0.0275 0.03102 Reference price ( $ ) 99.87 99.87 99.87 131.8284 Finance Operating income (EBITDA) Capital Expenditure Book Value Per Share (BVPS) 152211 166242 182407 124.8375 190263.7 5 71414 12852 74027 13424 77889 14594 89267.5 16065 92533.75 16780 Cash Flow per Share $ 22.80 $ 11.60 $ 25.80 $ 12.30 $ 32.20 $ 13.00 207802.5 $ 33.06 $ 14.50 32.25 15.375 Key Forecasting: Microsoft Corp. Pro-Forma Statement 2016 2017 2018 2019 2020 Sales Operating income (EBITDA) Operating profit (EBIT) Net income P/E ratio 91963 94582 100951 108642 117712.64 34557 36158 39302 40619 44232.96 27935 16798 24.4 29165 18947 21.6 31920 23528 17.4 34826 27921 14.3 35756.8 24357.1 31.232 EPS ( $ ) Dividend per Share ( $ ) 2.1 2.46 3.05 3.72 3.318 - 1.55 1.66 1.44 2.17 Yield Reference price ($) - 2.91% 3.12% 2.71% 3.55020% 51.17 53.09 53.09 53.09 65.4976 Finance Operating income (EBITDA) Capital Expenditure 59553 38 941 42 677 - 76227.84 34557 36 158 39 302 40 619 44232.96 8343 7 501 7 718 7 693 10679.04 [Type here] Running Head: APPLE INC. AND MICROSOFT CORPORATION'S Book Value Per Share (BVPS) Cash Flow per Share $ 9.22 $ 4.16 $ 9.80 $ 3.98 $ 10.50 $ 4.56 $ 14.50 $ 5.23 5 11.8016 5.3248 Current Strategies and Relevant Future In 2015, Apple has already announced its capital return program and will raise value to this program to $200 billion by March 2017. This will help to strengthen its share purchase authorization to $140 billion and will increase quarterly dividend to $0.52 per share. Additionally, company has been continuously looking forward for economical markets like India in computing technology to increase its global visibility in computing technology and also looking forward for renewable energy sources, and smart chip market so that they can begin long-term investment except to its current market which may be the future world expectations. Major competitors are; Microsoft, and Samsung and both have been trying to explore computing, smartphone, and electronics market. Microsoft is concerned about dynamic changes in the technological market and they have been continuously making changes in its business model and technological research to introduce more services in market. Looking forward for developing new software and devices, and cloud-based services for consumers. Ratio Analysis According to financial ratio forecasting details, (Apple Inc. (AAPL)-NasdaqGS & Microsoft Corporation (MSFT)-NasdaqGS): Key Forecasting: Apple Inc. Financial Ratios Valuation 2016 2017 2018 2019 2020 P/E ratio (Price / EPS) 12.2 11.2 14.396 13.216 16.98728 Capitalization / Revenue 2.54 2.44 2.9972 2.8792 3.536696 [Type here] Running Head: APPLE INC. AND MICROSOFT CORPORATION'S EV / Revenue EV / EBITDA Yield (DPS / Price) Price to book (Price / BVPS) Operating Margin (EBIT / Sales) operating Leverage (Delta EBIT / Delta Sales) Net Margin (Net Profit / Revenue) ROA (Net Profit / Asset) ROE (Net Profit / Equities) Rate of Dividend Valuation 1.83 5.53 2.20% 1.7 5.14 2.35% 2.1594 6.5254 2.60% 2.006 2.548092 6.0652 7.699972 2.77% 3.06% 4.38 3.87 5.1684 4.5666 6.098712 27.90% 27.90% 32.92% 32.92% 38.85% -1.97 0.95 -2.3246 1.121 -2.74303 21.30% 21.40% 25.13% 25.25% 29.66% 15.80% 15.00% 18.64% 17.70% 22.00% 35.70% 26.70% 34.00% 26.40% 42.13% 31.51% 40.12% 31.15% 49.71% 37.18% Key Forecasting: Microsoft Corp. Financial Ratios 2016 2017 2018 2019 2020 P/E ratio (Price / EPS) Capitalization / Revenue 21.6 17.4 24.84 20.01 28.566 4.41 4.13 5.0715 4.7495 5.832225 EV / Revenue EV / EBITDA Yield (DPS / Price) Price to book (Price / BVPS) Operating Margin (EBIT / Sales) 4 10.5 2.91% 3.71 9.53 3.12% 4.6 12.075 3.35% 4.2665 10.9595 3.59% 5.29 13.88625 3.85% 5.42 5.08 6.233 5.842 7.16795 30.80% 31.60% 35.42% 36.34% 40.73% 1.55 1.4 1.7825 1.61 2.049875 20.00% 23.30% 23.00% 26.80% 26.45% 11.50% 13.10% 13.23% 15.07% 15.21% 28.40% 62.90% 33.50% 54.40% 32.66% 72.34% 38.53% 62.56% 37.56% 83.19% operating Leverage (Delta EBIT / Delta Sales) Net Margin (Net Profit / Revenue) ROA (Net Profit / Asset) ROE (Net Profit / Equities) Rate of Dividend [Type here] 6 Running Head: APPLE INC. AND MICROSOFT CORPORATION'S 7 P/E ratio (Price / EPS): Apple Inc. and Microsoft both are aggressively working and it is expected that they would be at top in earnings per share means would be able to share high profit margin in their equity benefits that will help investors interest to invest more in these companies. Capitalization / Revenue: Apple Inc. is continuously having high market capitalization due to large number of investment while Microsoft is seeking for many new investors who could invest more in future growth. EV / Revenue: Apple and Microsoft both have attractive revenue growth due their innovative products and services. EV / EBITDA: This portion is highly dependent of market and government policies and regulations and applicable to both companies. Yield (DPS / Price): Both have high yield for their shares. Price to book (Price / BVPS): Microsoft has high market due to its expanded market in worldwide nations while Apple is now expanding its business across different nations and increasing its visibility. Operating Margin (EBIT / Sales): Microsoft is continuously beating Apple in operating profits and they are able to cheap products and services which are more favourable in market. Net Margin (Net Profit / Revenue): Apple is continuously marking good margin on its products sale while Microsoft is quite less due to its moderate products. ROA (Net Profit / Asset): Apple gives more return of asset values. ROE (Net Profit / Equities): Apple support its investors with high profit margin that's why there are number of long-term investors in Apple Inc. Rate of Dividend: Microsoft shares high profits with its investors so that they could [Type here] Running Head: APPLE INC. AND MICROSOFT CORPORATION'S take interest to invest more in the company. Hence, overall Apple is looking forward to expand its market and increase visibility in order to get the high market benefits while Microsoft is aggressively working to invest more in its services to explore the market with increased level of services requirements in technological world. [Type here] 8 Running Head: APPLE INC. AND MICROSOFT CORPORATION'S 9 References Apple Inc.: Form 10-K. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549. Retrieved 06, July 2016 fromhttps://www.sec.gov/Archives/edgar/data/320193/000119312515356351/d17062d10k. htm#toc17062_11 Apple Inc. (AAPL)-NasdaqGS. Yahoo Finance. Retrieved 06, July 2016 fromhttps://finance.yahoo.com/q?s=AAPL James R. Hitchnera (2006). Financial Valuation: Applications and Models. USA: Wiley Finance. ISBN 0-471-76117-6. Microsoft Corporation: Form 10-K. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549. Retrieved 06, July 2016 fromhttps://www.sec.gov/Archives/edgar/data/789019/000119312515272806/d918813d10 k.htm#tx918813_11 Microsoft Corporation (MSFT)-NasdaqGS. Yahoo Finance. Retrieved 06, July 2016 fromhttps://in.finance.yahoo.com/q?s=MSFT [Type here] Running Head: APPLE INC. AND MICROSOFT CORPORATION'S 10 Appendix Apple Inc. and Microsoft Corporation's financial statements (FY-2015): Income Statement Period Total Revenue Cost of Revenue Apple Inc. (FY2015, in $) 233715000.00 140089000.00 Microsoft Corporation (FY-2015, in $) 93580000 33,038,000 Gross Profit 93,626,000 60,542,000 8,067,000 12,046,000 14,329,000 - 20,324,000 10,011,000 - - - 71,230,000 18,161,000 1,285,000 346,000 72,515,000 72,515,000 19,121,000 - 18,507,000 18,507,000 6,314,000 - 53,394,000 12,193,000 Operating Expenses Research Development Selling General and Administrative Non Recurring Others Total Operating Expenses Operating Income or Loss Income from Continuing Operations Total Other Income/Expenses Net Earnings Before Interest And Taxes Interest Expense Income Before Tax Income Tax Expense Minority Interest Net Income From Continuing Ops Non-recurring [Type here] Running Head: APPLE INC. AND MICROSOFT CORPORATION'S Events Discontinued Operations Extraordinary Items Effect Of Accounting Changes Other Items Net Income Preferred Stock And Other Adjustments Net Income Applicable To Common Shares 11 - - - - 53,394,000 12,193,000 - - 53,394,000 12,193,000 Balance Sheet Apple Inc. (FY2015, in $) Period Assets Current Assets Cash And Cash Equivalents Short Term Investments Net Receivables Inventory Other Current Assets Total Current Assets Long Term Investments Property Plant and Equipment Goodwill Intangible Assets Accumulated Amortization Other Assets Deferred Long Term Asset Charges [Type here] Microsoft Corporation (FY-2015, in $) 21120000.00 5,595,000 20481000.00 35889000.00 2349000.00 9539000.00 90,931,000 19,823,000 2,902,000 5,461,000 89378000.00 124,712,000 164065000.00 12,053,000 22,471,000 5,116,000 3,893,000 14,731,000 16,939,000 4,835,000 5,556,000 2,953,000 - - Running Head: APPLE INC. AND MICROSOFT CORPORATION'S Total Assets 12 290479000.00 176,223,000 60,671,000 12,385,000 10,999,000 7,484,000 8,940,000 29,989,000 80610000.00 53,463,000 33,427,000 49,858,000 27,808,000 13,544,000 3,624,000 - 4,930,000 - 171124000.00 96,140,000 - - 27,416,000 92,284,000 - 68,465,000 9,096,000 - Liabilities Current Liabilities Accounts Payable Short/Current Long Term Debt Other Current Liabilities Total Current Liabilities Long Term Debt Other Liabilities Deferred Long Term Liability Charges Minority Interest Negative Goodwill Total Liabilities Stockholders' Equity Misc Stocks Options Warrants Redeemable Preferred Stock Preferred Stock Common Stock Retained Earnings Treasury Stock Capital Surplus Other Stockholder Equity -345000.00 2,522,000 Total Stockholder Equity 119,355,000 80,083,000 Net Tangible Assets 110,346,000 58,309,000 Cash Flow Statement Period Net Income [Type here] Apple Inc. (FY2015, in $) 53,394,000 Microsoft Corporation (FY2015, in $) 12,193,000 Running Head: APPLE INC. AND MICROSOFT CORPORATION'S Operating Activities, Cash Flows Provided By or Used In Depreciation Adjustments To Net Income Changes In Accounts Receivables Changes In Liabilities Changes In Inventories Changes In Other Operating Activities Total Cash Flow From Operating Activities Investing Activities, Cash Flows Provided By or Used In Capital Expenditures Investments Other Cash flows from Investing Activities Total Cash Flows From Investing Activities Financing Activities, Cash Flows Provided By or Used In Dividends Paid Sale Purchase of Stock Net Borrowings Other Cash Flows from Financing Activities Total Cash Flows From Financing Activities Effect Of Exchange Rate Changes Change In Cash and Cash Equivalents [Type here] 11,257,000 4,968,000 5,957,000 9,417,000 -3124000.00 15,188,000 -238000.00 1,456,000 -79000.00 -272000.00 -179000.00 408,000 81,266,000 29,080,000 -11247000.00 -44417000.00 -5944000.00 -12868000.00 -610000.00 -4189000.00 -56274000.00 -23001000.00 -11561000.00 -34710000.00 29,305,000 -9882000.00 -13809000.00 13,661,000 -1499000.00 362,000 -17716000.00 -9080000.00 - -73000.00 7,276,000 -3074000.00 13