UCBUGBA102ATopic10PracticeQuestionsSolns

UCBUGBA102ATopic10PracticeQuestionsSolns - Topic10...

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Topic10 Financial Statement Analysis The Consolidated Balance Sheets and Statements of Operations for Apple, Inc. for the years ended September 27, 2008 are presented in summary form. Additional information is as follows: in millions (except per share data) Cash generated by operating activities $9,596 Interest expense (Year Ended Sep. 27, 2008) $ 33 Earnings per share (Basic) $ 5.48 Average stock price (4 th Quarter 2008) $ 150.80 Shares used in computing earnings per share 881.59 Dividends paid none Question 1. Prepare a horiziontal and vertical analysis by completing the appropriate table below. Question 2. Calculate the financial ratios indicated by completing the appropriate table below. Question 3. Briefly describe the financial condition of Apple, Inc. for the year ended September 27, 2008 by answering the following: a. How profitable was Apple? b. How efficiently were Apple’s resources managed? c. How well can Apple pay its bills? d. Does Apple have long term sustainability? e. Is Apple a good investment? UGBA102A Topic10 Practice Questions 1
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Apple, Inc. Consolidated Balance Sheets ($ millions) September 27, 2008 September 29, 2007 % Change Cash & cash equivalents $11,875 $ 9,352 27% Short-term investments 12,615 6,034 109% Accounts receivable, net 2,422 1,637 48% Inventories 509 346 47% Other current assets 7,269 4,587 58% Total current assets $34,690 $21,956 58% Property, plant & equipment, net 2,455 1,832 34% Other long-term assets 2,427 1,559 56% Total assets $39,572 $25,347 56% Accounts payable $5,520 $4,970 11% Accrued expenses 8,572 4,310 99% Total current liabilities $14,092 $ 9,280 52% Non-current liabilities 4,450 1,535 190% Total liabilities $18,542 $10,815 71% Common stock 7,177 5,368 34% Retained earnings 13,845 9,101 52% Acc. other comprehensive income 8 63 (87)% Total shareholders’ equity $21,030 $14,532 45% Total liab. & shareholders’ equity $39,572 $25,347 56% Apple, Inc.
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