Financial Statement Geography and Ratio Analysis GEOGRAPHY : How much Cash and S
ID: 1170292 • Letter: F
Question
Financial Statement Geography and Ratio Analysis
GEOGRAPHY:
How much Cash and Short Term Investments did Apple have on hand on 9/27/2014? à 25,077
How much Income Tax did Apple pay in 2014? à 13,973
What was Apple’s Total Equity in 2013? In 2014? à 13 - 123,549 & 14 – 118,210
How much did they spend on R&D in 2014? - 6,041
Formula for following questions = (# 2014 - #2013) / #2013
What % did Revenue increase by between 2013 & 2014 – (revenue 2014-revenue2013)/revenue 2013: à 6.95%
What % did SG&A increase by between 2013 & 2014: à 15.54%
What % did Net Profits increase by between 2013 & 2014: à 6.677%
What % did Cash & Short Term Investments increase by between 2013 & 2014 à -38.15%
What % did Long Term Investments increase by between 2013 & 2014 à 22.55%
B) RATIO ANALYSIS: Use the equations found on pages 1 & 2.
3 Easy Steps
Find the ratio and identify the parts to the equation.
Look up the parts.
Do the math.
What was Apple’s current ratio in the 2014 balance sheet? ____________________________
What was Apple’s current ratio in the 2013 balance sheet? _____________________
In which balance sheet were they more liquid? ___________________
What was Apple’s profit margin in 2014? ____________________
What was Apple’s profit margin in 2013? ___________________
In which year were they more profitable? _____________
What was Apple’s debt to equity ratio (you need to subtract current liabilities from total liabilities to get long term debt) from the 2014 balance sheet? ____________________
What was Apple’s debt to equity ratio (you need to subtract current liabilities from total liabilities to get long term debt) from the 2013 balance sheet? ____________________
In which balance sheet were they more leveraged?___________________
APPLE INCOME STATEMENT PPLE BALANCE SHEET In Millione of Dollars 2014-09-27 2013-09-28 2012-09-29 52 werks Ending 52 wecks Ending 2013 09 28 52 weks ASSETS 3,844 14,259.00 10,746.00 11.233 28,287.00 .38300 25077 40,546.00 7017900 0,930.00 14-09 27 2012-09 29 Short Tenm inveatmeds Cand Shot Tem investmems Accounds Recaivadle Tolal rveory Cines Curren! Aasefa, Tolal A Revenue 70,910.0O 158,508.00 192,795 112,288 7.460 13,102.0O 2.111 1,764.00 23 893 7,874.00 Cost at Goods So Gross Profit 64,304.00 10,390.00 4,475.00 63.662.00 SelvngGea Expeees (SG&A;) 11,993 Research & Developmen 6,041 Total Current Assets PropartyPHaEoment, cra- Gross nanges, Nod Other Lon Tem Ass9ts, Total 58,53173,285.0O 20,624 16,597.0O 1,377.00 15,45200 1,13500 4224 00 4,616 UISuai Expense (income) Otmer Operating Expenses, Tofal Total Operating Expense Long Term investmes 130 182 108,215 00 3.754 231 839 5,146.00 207 000 00 15,305.00 5,478.00 176084 00 52503 48,990 5,24100 Total Assets Irterest Expeneericome Gain fLo3s) n Sale or Asaets omer, Ner LIABILITIES&STOCKHOLDER; EQUITY 1,156.00 50,155.00 30,16 22,3670021,17500 18 453 13,8660011,414.00 Income Before Tax 53,483 Accrued Dxpenses 55,783.00 14.030 00 6.300 Notes Paysble sho em Deo Other Curent a,Tota 41 7435.00 595300 38 542 0D Income After Tax 37,037.00 Total Current Lisbilities 83 448 43,659.00 28987 16,960.00 Long Term Dett Deterred hcome Tax Total 2,625.00 .031 24.826 20,200.0O F NetIncome 37,037.00 1,733.00 Total Liabilities 120 292 03,45100 57.054.00 39,510 Redeemeble Frefemed srock, Total Prefered Stock-Non RedemaCiS, Nex Commn Sock, Total Additonaí Paid-in Captal 23,313 19,7640O 16,42200 Retained Eemangs (Accumleted Deci 87,152 104,20 101,289.00 Treasury Stock-Comnon Other Equy, Total book for Income statemen nent terms and definltions 21000- 176,064.0D Total Liabilities & Shareholders' Equity 231.39 207,000.00 Income lefiover ater aloparsing xar 88 have bean dsdu:t Somatimes resmed tos ET (Eaming Beore Intereat and Tax8)Explanation / Answer
Answer for Part A are alredy given, so answering B. Hope that was the intent. If that is not the case or you want to understand any one of the Part A, let me know in comments.
Part B
The current ratio is a liquidity ratio that measures a company's ability to pay short-term and long-term obligations.
Current ratio = Current Assets/Current Liabilities
Current Ratio (2014) = $68,531/$63,448 = 1.08
Current Ratio (2013) = $73,286/$43,658 = 1.68
Profit margin is calculated as net income divided by revenue, or net profits divided by sales.
Profit Margin = Net Income/Revenue
Profit Margin (2014) = $39,510/$182,795 = 21.61%
Profit Margin (2013) = $37,037/$170,910 = 21.67%
Debt to Equity Ratio is a financial ratio indicating the relative proportion of shareholders'equity and debt used to finance a company's assets.
Debt to Equity Ratio = (Total liabilities - Current liabilities)/Equity
{This is based on the hint given in question, in real world, we just take long term debt here}
Debt to Equity Ratio (2014) = ($120,292 - $63,448)/$111,547 = 50.96%
Debt to Equity Ratio (2013) = ($83,451 - $43,658)/$123,549 = 32.21%
They are more levereaged in 2014. This is evident from a higher debt to equity ratio in 2014 compared to that in 2013.
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