Case 2 part 1 Spring 2018.pdf - ACC 101 Financial...

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Unformatted text preview: ACC 101 Financial Accounting Case 2- Financial Statement Analysis Part 1 -40 Points Name ____________________________ Due Date _________________________ Use the information contained in the APPLE financial statements in Appendix A of your textbook to complete this case. All answers should be for the most current year given (September 29,2012) unless asked otherwise. Many companies show amounts in the thousands or millions please state amounts as shown on the financial statements. Do not add zeros. You do not need to include dollar signs. I. Balance Sheet Page A-2 (5.5 Points) Answer 1. What does consolidated mean? (Hint: See your glossary.) 2. What is the amount of cash and cash equivalents on hand and in bank accounts that the company has? 3. What is the amount of goods the company acquired to resell to customers? 4. What amount is owed to the company from customers? (Net of any allowances is fine.) 5. Is their investment in Property, Plant and Equipment increasing or decreasing? By how much? 6. What is the amount of Current Assets? Why is this subtotal helpful? 7. What is 8. What is the amount of liabilities that are due within one year or operating cycle? 9. What is the amount of total liabilities? 10. Did Retained Earnings increase or decrease from the prior year? 11. How much did Retained Earnings increase or decrease from the prior year? II. Income Statement Page A-3 (3.5 Points) Answer 1. 2. What are the total net sales? 3. What is the cost of products sold? 4. What is the gross profit/margin? 5. What is the amount of selling, general and administrative expense? 6. What is the amount of net earnings/income for the current year? 7. What is the dollar amount that net earnings/income has increased or (decreased) from the previous year? III. Consolidated State Page A-4 (4 Points) 1. own words the purpose of this statement. 2. What is the beginning Retained earnings balance for the year ending Sept. 29, 2012? What is the ending Retained earnings balance for the year ending Sept. 29, 2012? 3. State at least two reason the Retained Earnings balance changed from Sept. 24, 2011 to Sept. 29, 2012. IV. Notes Pages A-6 through A-9 (7 Points) 1. What is the difference between a calendar year and a fiscal year? the same date every year? How is the date determined? 2. What factors does Apple use to assess Allowance for Doubtful Accounts? 3. What inventory method is used for inventories? 4. What depreciation method is used for Property, Plant and Equipment? What is the estimated useful life for the following assets? 5. Building 6. Machinery and equipment V. Review 1. Ratios Analysis for 2012 Page 588-596 (20 Points) Current Ratio (pages 589-590) (2 points) a. b. ratio in 2011 and 2012? How does this ratio compare to the industry, Google and Samsung? c. paying ability? 2. Accounts Receivable Turnover (page 591) (2 points) a. Accounts Receivable Turnover ratio for 2012? b. How does this ratio compare to the industry, Google and Samsung? c. If the Accounts Receivable Turnover is generally in the range of 7 to 12, how is Apple doing? 3. Inventory Turnover (page 591) (2 points) a. b. How does this ratio compare the industry, Google and Samsung? (Pages 591-592) (2 points) 4. a. b. How does this ratio compare to Google and Samsung? c. Apple doing? (Page 592) (2 points) 5. c. for 2012? d. How does this ratio compare the industry, Google and Samsung? 6. Total Asset Turnover (page 592) (2 points) a. Total Asset Turnover ratio for 2012? b. How does this ratio compare to the industry, Google and Samsung? 7. Debt-to-Equity (page 593) (2 points) a. Debt-to-Equity ratio for 2012? b. How does this ratio compare to the industry, Google and Samsung? c. 8. ? Profit Margin (page 594) (2 points) a. b. How does this ratio compare to the industry, Google and Samsung? 9. Price-Earnings Ratio (pages 595- 596) (2 points) a. -Earnings Ratio for 2012? b. How does this ratio compare Google and Samsung? c. If analyst give a range of higher than 20-25 for a stock to be considered overpriced and less than 5-8 for a stock to be considered underpriced, how is Apple doing? 10. Dividend Yield (page 596) (2 points) a. Dividend Yield ratio for 2012? b. How does this ratio compare Google and Samsung? c. What does this tell you about Apple? ...
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