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You have chosen a Apple Inc ( a publicly traded company) that you are considering investing in and/or lend money to. As a financial expert,
You have chosen a Apple Inc ( a publicly traded company) that you are considering investing in and/or lend money to. As a financial expert, you refer to the SEC 10-K annual filing to answer the following questions:
- a)Make a 5-year trend analysis in Excel, using 2015 as the base year, of total revenues, operating expenses, and net income. Comment on the significance of the trend results.
- b)Compute for 2019 and 2018 the (1) profit margin, (2) asset turnover, (3) return on assets and (4) return on common stockholders' equity. How would you evaluate the company's profitability?
- c)Compute for 2019 and 2018 the (1) current ratio and (2) working capital. How would you evaluate the company's liquidity?
- d)Compute for 2019 and 2018 the (1) debt to total assets and (2) times interest earned ratio. How would you evaluate the company's long-term solvency?
- e)Compute for 2019 and 2018 the (1) DuPont Analysis. How would you evaluate the company's expense control, asset utilization and debt utilization?
- f)What information outside the annual report may also be useful to you decision to invest in or lend money to this company?
- g)Statement of Cash Flows - What was the dollar amount of the increase or decrease in cash and cash equivalents for the fiscal years ended 2019, 2018, 2017?
- h)Statement of Cash Flows - Does the ending balance of cash and cash equivalents agree with the amount reported on the balance sheet?
- i)Statement of Cash Flows - For 2019, list the amount of cash provided (or used) for Operating, Investing and Financing Activities.
- j)Stockholder's Equity - For 2019, list all components of the Stockholder's Equity section of the Balance Sheet (including and Preferred Stock or Treasury Stock).
- k)Does the company mention the valuation of financial instruments? If so, provide the comment in the disclosure notes.
- l)From the disclosure notes, how does your company classify financial assets?
- m)Does the company disclose any Contingencies in their 2019 disclosure notes?
- n)What were the earnings per share (basic and fully diluted) for the fiscal years ended 2019, 2018, 2017?
o) In 2019, were the company's assets funded more with debt or equity?
- p)What countries does your company operate within? What is the primary country of its operations? What issues related to international accounting (Non-US GAAP) are mentioned in the annual report?
- q)How does your company address Corporate Social Responsibility? What is your company's primary focus in regards to Corporate Social Responsibility? Please provide three examples of how your company participates in Corporate Social Responsibility.
- r)Would you invest in or lend money to this company? Why or why not? (this answer should be a minimum of one paragraph in length)
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