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2011 2010 2009 2008 2007 Net Sales ……………………………………. 108, 249 65, 225 42,905 37,49

ID: 2498895 • Letter: 2

Question

  2011                        2010               2009             2008           2007

Net Sales …………………………………….            108, 249                65, 225          42,905          37,491         24,578

Net income…………………………………            25,922                   14,013            8,235            6,119          3,495

Cash cash equivalents and

Marketable securities………………               81, 570                  51,011             33,992          24,490          15,386

Total assets……………………………………..      116, 371                75, 183           53, 851          36,171         24,878

Shareholders equity…………………….. …..   76,615                  47,791              27, 832         22, 297       14,531

Long term debt oligation……………………..   10,100                 5,531                 3,502            1,745             687

e. calculate apple inc total liabilities for each year presented above

f. are the trends expressed in these data generally consistent with each other

g. in your opinion which of these trends would be most meaningful to a potential investor in common stock of apple inc? which trend would be least meaningful?

h. what other data trend or otherwise would you like to have access to before making an investment in apple inc?

Explanation / Answer

Solution -

f - trends expressed in these data is generally consistent with each other with trend showing that thet Company is growing year or year interms of REvenue as well as Margin and growing on return on Assets though it was slightly down in 2009

g. Though each and every metrics of financial statement is important for an outside investor in general trends which would be most meaningful to a potential investor in common stock of apple inc will be REturn on Equity & Net Profit ?

And the trend would be least meaningful is cash equivalents and Marketable securities

h. other data trend we would like to have access to is Gross Margin , Working Capital, Turn Over Ratios & Efficiency ratio, Dividend History and Earning Per share

2011 2010 2009 2008 2007 1 Net Sales 108249 65225 42905 37491 24578 2 Net income 25922 14013 8235 6119 3495 3 Net Profit Margin ( 2/1) 24% 21% 19% 16% 14% 4 Cash cash equivalents and Marketable securities 81570 51011 33992 24490 15386 5 Total assets 116371 75183 53851 36171 24878 6 Return on Assets ( 2/5 ) 22% 19% 15% 17% 14% 7 Shareholders equity 76615 47791 27832 22297 14531 8 Return on Equity (2/7) 34% 29% 30% 27% 24% 9 Long term debt oligation 10100 5531 3502 1745 687 10 Debt to Equity Ratio ( e/7 ) e calculated below 52% 57% 93% 62% 71% e Total liabilities ( 5- 7) 39756 27392 26019 13874 10347