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Income_Statement APPLE CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions 12 Months Ended 12 Months Ended % Change % Change % Change MICROSOFT INCOME STATEMENTS - USD...

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Income_Statement
    APPLE CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions    12 Months Ended    12 Months Ended    % Change        % Change        % Change        MICROSOFT INCOME STATEMENTS - USD ($) shares in Millions, $ in Millions        12 Months Ended
        Sep. 30, 2016    Sep. 30, 2017        Sep. 29, 2018        Sep. 28, 2019                Jun. 30, 2016    Jun. 30, 2017    % Change    Jun. 30, 2018    % Change    Jun. 30, 2019    % Change
    Net sales    215639     $ 229234     6.30%     $ 265595     15.86%     $ 260174     -2.04%        Revenue    84,695     $ 96571     14.02%     $ 110360     14.28%     $ 125843     14.03%
    Cost of sales    131376     141048     7.36%    163756     16.10%    161782     -1.21%        Cost of revenue    32,780    34261     4.52%    38353     11.94%    42910     11.88%
    Gross margin    84263     88186     4.66%    101839     15.48%    98392     -3.38%        Gross margin    51,915    62310     20.02%    72007     15.56%    82933     15.17%
    Operating expenses:                                    Research and development    11,988    13037     8.75%    14726     12.96%    16876     14.60%
    Research and development    10045     11581     15.29%    14236     22.93%    16217     13.92%        Sales and marketing    14,697    15461     5.20%    17469     12.99%    18213     4.26%
    Selling, general and administrative    14194     15261     7.52%    16705     9.46%    18245     9.22%        General and administrative    4,563    4481     -1.80%    4754     6.09%    4885     2.76%
    Total operating expenses    24239     26842     10.74%    30941     15.27%    34462     11.38%        Restructuring    1,110    306     -72.43%    0     -100.00%    0
    Operating income    60024     61344     2.20%    70898     15.57%    63930     -9.83%        Operating income    20,182    29025     43.82%    35058     20.79%    42959     22.54%
    Other income/(expense), net    1348     2745     103.64%    2005     -26.96%    1807     -9.88%        Other income, net    -431    876     -303.25%    1416     -95.26%    729     -48.52%
    Income before provision for income taxes    61372     64089     4.43%    72903     13.75%    65737     -9.83%        Income before income taxes    19,751    29901     -77.66%    36474     726.70%    43688     19.78%
    Provision for income taxes    15685     15738     0.34%    13372     -15.03%    10481     -21.62%        Provision for income taxes    2,953    4412     763.16%    19903     -21.92%    4448     -77.65%
    Net income    45687     $ 48351     5.83%     $ 59531     23.12%     $ 55256     -7.18%        Net income    16,798     $ 25489     51.74%    16,571    -34.99%     $ 39240     136.80%
    Earnings per share:         $ 9.27          $ 12.01     29.56%     $ 11.97     -0.33%        Earnings per share:
    Basic (in dollars per share)    8.35     $ 9.21     10.30%     $ 11.91     29.32%     $ 11.89     -0.17%        Basic    2.12     $ 3.29          $ 2.15     -34.65%     $ 5.11     137.67%
    Diluted (in dollars per share)    8.31                                Diluted    2.10     $ 3.25          $ 2.13     -34.46%     $ 5.06     137.56%
    Shares used in computing earnings per share:        5217242         4955377     -5.02%    4617834     -6.81%        Weighted average shares outstanding:
    Basic (in shares)    5470820     5251692     -4.01%    5000109     -4.79%    4648913     -7.02%        Basic    7,925    Â Â         7700         7673     -0.35%
    Diluted (in shares)    5500281                                 Diluted    8,013    7832         7794     -0.49%    7753     -0.53%
                                        MICROSOFT COMMON SIZED INCOME STATEMENTS - USD ($) shares in Millions, $ in Millions        12 Months Ended
    APPLE Common-Sized Income Statement    Sep. 30, 2016    Sep. 30, 2017    Common Sized    Sep. 29, 2018    Common Sized    Sep. 28, 2019    Common Sized            Jun. 30, 2016    Jun. 30, 2017    Common Sized    Jun. 30, 2018    Common Sized    Jun. 30, 2019    Commnn Sized
    Net sales    215639     $ 229234     100%     $ 265595     100.00%     $ 260174     100.00%        Revenue    84,695     $ 96571     100.00%     $ 110360     100.00%     $ 125843     100.00%
    Cost of sales    131376     141048     62%    163756     61.66%    161782     62.18%        Cost of revenue    32,780    34261     35.48%    38353     34.75%    42910     34.10%
    Gross margin    84263     88186     38%    101839     38.34%    98392     37.82%        Gross margin    51,915    62310     64.52%    72007     65.25%    82933     65.90%
    Operating expenses:                                    Research and development    11,988    13037     13.50%    14726     13.34%    16876     13.41%
    Research and development    10045     11581     5%    14236     5.36%    16217     6.23%        Sales and marketing    14,697    15461     16.01%    17469     15.83%    18213     14.47%
    Selling, general and administrative    14194     15261     7%    16705     6.29%    18245     7.01%        General and administrative    4,563    4481     4.64%    4754     4.31%    4885     3.88%
    Total operating expenses    24239     26842     12%    30941     11.65%    34462     13.25%        Restructuring    1,110    306     0.32%    0     0.00%    0     0.00%
    Operating income    60024     61344     27%    70898     26.69%    63930     24.57%        Operating income    20,182    29025     30.06%    35058     31.77%    42959     34.14%
    Other income/(expense), net        2745     1%    2005     0.75%    1807     0.69%        Other income, net    -431    876     0.91%    1416     1.28%    729     0.58%
    Income before provision for income taxes    1348     64089     28%    72903     27.45%    65737     25.27%        Income before income taxes    19,751    29901     30.96%    36474     33.05%    43688     34.72%
    Provision for income taxes    61372     15738     7%    13372     5.03%    10481     4.03%        Provision for income taxes    2,953    4412     4.57%    19903     18.03%    4448     3.53%
    Net income    15685      $ 48351     21%     $ 59531     22.41%     $ 55256     21.24%        Net income    16,798     $ 25489     26.39%     $ 16571     15.02%     $ 39240     31.18%
    Earnings per share:    45687                                Earnings per share:
    Basic (in dollars per share)         $ 9.27          $ 12.01          $ 11.97             Basic         $ 3.29          $ 2.15          $ 5.11
    Diluted (in dollars per share)         $ 9.21          $ 11.91          $ 11.89             Diluted         $ 3.25          $ 2.13          $ 5.06
    Shares used in computing earnings per share:                                    Weighted average shares outstanding:
    Basic (in shares)    5470820     5217242         4955377         4617834             Basic        7746         7700         7673
    Diluted (in shares)    5500281     5251692         5000109         4648913             Diluted        7832         7794         7753
Balance_Sheet
    APPLE CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions    Sep. 29, 2017    Sep. 29, 2018    % Change    Sep.. 29, 2019    % Change        MICROSOFT BALANCE SHEETS - USD ($) $ in Millions    Jun. 30, 2017    Jun. 30, 2018    % Change    Jun. 30, 2019    % Change
    Cu
ent assets:                            Cu
ent assets:
    Cash and cash equivalents    20,289    25,913    27.7%    48,844    88.5%        Cash and cash equivalents    7,663    11,946    55.9%    11,356    -4.9%
    Marketable securities    53,892    40,388    -25.1%    51,713    28.0%        Short-term investments    125,318    121,822    -2.8%    122,463    0.5%
    Accounts receivable, net    17,874    23,186    29.7%    22,926    -1.1%        Total cash, cash equivalents, and short-term investments    132,981    133,768    0.6%    133,819    0.0%
    Inventories    4,855    3,956    -18.5%    4,106    3.8%        Accounts receivable, net of allowance for doubtful accounts of $411 and $377    22,431    26,481    18.1%    29,524    11.5%
    Vendor non-trade receivables    17,799    25,809    45.0%    22,878    -11.4%        Inventories    2,181    2,662    22.1%    2,063    -22.5%
    Other cu
ent assets    13,936    12,087    -13.3%    12,352    2.2%        Other    5,103    6,751    32.3%    10,146    50.3%
    Total cu
ent assets    128,645    131,339    2.1%    162,819    24.0%        Total cu
ent assets    162,696    169,662    4.3%    175,552    3.5%
    Non-cu
ent assets:                            Non-cu
ent assets:
    Long-Term Marketable Securities    194,714    170,799    -12.3%    105,341    -38.3%        Property and equipment, net of accumulated depreciation of $24,179 $35,330 and $29,223    23,734    29,460    24.1%    36,477    23.8%
    Property, plant and equipment, net    33,783    41,304    22.3%    37,378    -9.5%        Operating lease right-of-use assets    6,555    6,686    2.0%    7,379    10.4%
    Other non-cu
ent assets    18,177    22,283    22.6%    32,978    48.0%        Equity investments    6,023    1,862    -69.1%    2,649    42.3%
    Total non-cu
ent assets    246,674    234,386    -5.0%    175,697    -25.0%        Goodwill    35,122    35,683    1.6%    42,026    17.8%
    Total Assets    375,319    365,725    -2.6%    338,516    -7.4%        Intangible assets, net    10,106    8,053    -20.3%    7,750    -3.8%
                                Other long-term assets    6,076    7,442    22.5%    14,723    97.8%
                                Total Assets    250,312    258,848    3.4%    286,556    10.7%
    Cu
ent liabilities:                            Cu
ent liabilities:
    Accounts payable    49,049    55,888    13.9%    46,236    -17.3%        Accounts payable    7,390    8,617    16.6%    9,382    8.9%
                                Short-Term Debt    9,072
    Other cu
ent liabilities    25,744    33,327    29.5%    37,720    13.2%        Cu
ent portion of long-term debt    1,049    3,998    281.1%    5,516    38.0%
    Defe
ed revenue    7,548    5,966    -21.0%    5,522    -7.4%        Accrued compensation    5,819    6,103    4.9%    6,830    11.9%
    Commercial paper    11,977    11,964    -0.1%    5,980    -50.0%        Short-term income taxes    718    2,121    195.4%    5,665    167.1%
    Cu
ent portion of long-term debt    6,496    8,784    35.2%    10,260    16.8%        Short-term unearned revenue    24,013    28,905    20.4%    32,676    13.0%
    Total cu
ent liabilities    100,814    115,929    15.0%    105,718    -8.8%        Other    7,684    8,744    13.8%    9,351    6.9%
                                Total cu
ent liabilities    55,745    58,488    4.9%    69,420    18.7%
    Long-term debt    97,207    93,735    -3.6%    91,807    -2.1%                    ERROR:#DIV/0!
    Other non-cu
ent liabilities    40,415    48,914    21.0%    50,503    3.2%        Long-term debt    76,073    72,242    -5.0%    66,662    -7.7%
    Total non-cu
ent liabilities    137,622    142,649    3.7%    142,310    -0.2%        Long-term income taxes    13,485    30,265    124.4%    29,612    -2.2%
    Total liabilities    241,272    258,578    7.2%    248,028    -4.1%        Long-term unearned revenue    2,643    3,815    44.3%    4,530    18.7%
    Commitments and contingencies                            Defe
ed income taxes    5,734    541    -90.6%    233    -56.9%
                                  Operating lease liabilities    5,372    5,568    3.6%    6,188    11.1%
                                Other long-term liabilities    3,549    5,211    46.8%    7,581    45.5%
                                Total liabilities    162,601    176,130    8.3%    184,226    4.6%
                                Commitments and contingencies
    Shareholders’ equity:                            Stockholders’ equity:
    Common stock and additional paid-in capital, $ XXXXXXXXXXpar value: 12,600,000 shares authorized; 4,443,236 and 4,754,986 shares issued and outstanding, respectively    35,867    40201     12.1%    45,174    12.4%        Common stock and paid-in capital – shares authorized 24,000; outstanding 7,643 and 7,677    69,315    71,223    2.8%    78,520    10.2%
    Retained earnings    98,330    70400     -28.4%    45,898    -34.8%        Retained earnings    17,769    13,682    -23.0%    24,150    76.5%
    Accumulated other comprehensive income/(loss)    -150    (3454)    2202.7%    -584    -83.1%        Accumulated other comprehensive loss    627    -2,187    -448.8%    -340    -84.5%
    Total shareholders’ equity    134,047    107147     -20.1%    90,488    -15.5%        Total stockholders’ equity    87,711    82,718    -5.7%    102,330    23.7%
    Total liabilities and shareholders’ equity    375,319     $ 365725     -2.6%    338,516    -7.4%        Total liabilities and stockholders' equity    250,312    258,848    3.4%    286,556    10.7%
    APPLE CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions    Sep. 29, 2017    Sep. 29, 2018    % of Total Assets    Sep. 28, 2019    % of Total Assets        MICROSOFT BALANCE SHEETS - USD ($) $ in Millions    Jun. 30, 2017    Jun. 30, 2018    % of Total Assets    Jun. 30, 2019    % of Total Assets
    Cu
ent assets:                            Cu
ent assets:
    Cash and cash equivalents    20,289    25,913    7.1%    48,844    14.4%        Cash and cash equivalents    7,663    11,946    4.6%    11,356    4.0%
    Marketable securities    53,892    40,388    11.0%    51,713    15.3%        Short-term investments    125,318    121,822    47.1%    122,463    42.7%
    Accounts receivable, net    17,874    23,186    6.3%    22,926    6.8%        Total cash, cash equivalents, and short-term investments    132,981    133,768    51.7%    133,819    46.7%
    Inventories    4,855    3,956    1.1%    4,106    1.2%        Accounts receivable, net of allowance for doubtful accounts of $411 and $377    22,431    26,481    10.2%    29,524    10.3%
    Vendor non-trade receivables    17,799    25,809    7.1%    22,878    6.8%        Inventories    2,181    2,662    1.0%    2,063    0.7%
    Other cu
ent assets    13,936    12,087    3.3%    12,352    3.6%        Other    5,103    6,751    2.6%    10,146    3.5%
    Total cu
ent assets    128,645    131,339    35.9%    162,819    48.1%        Total cu
ent assets    162,696    169,662    65.5%    175,552    61.3%
    Non-cu
ent assets:                            Non-cu
ent assets:
    Long-Term Marketable Securities    194,714    170,799    46.7%    105,341    31.1%        Property and equipment, net of accumulated depreciation of $24,179 $35,330 and $29,223    23,734    29,460    11.4%    36,477    12.7%
    Property, plant and equipment, net    33,783    41,304    11.3%    37,378    11.0%        Operating lease right-of-use assets    6,555    6,686    2.6%    7,379    2.6%
    Other non-cu
ent assets    18,177    22,283    6.1%    32,978    9.7%        Equity investments    6,023    1,862    0.7%    2,649    0.9%
    Total non-cu
ent assets    246,674    234,386    64.1%    175,697    51.9%        Goodwill    35,122    35,683    13.8%    42,026    14.7%
    Total Assets    375,319    365,725    100.0%    338,516    100.0%        Intangible assets, net    10,106    8,053    3.1%    7,750    2.7%
                                Other long-term assets    6,076    7,442    2.9%    14,723    5.1%
                                Total Assets    250,312    258,848    100.0%    286,556    100.0%
    Cu
ent liabilities:                            Cu
ent liabilities:
    Accounts payable    49,049    55,888    15.3%    46,236    13.7%        Accounts payable    7,390    8,617    3.3%    9,382    3.3%
                                Short-Term Debt    9,072
    Other cu
ent liabilities    25,744    33,327    9.1%    37,720    11.1%        Cu
ent portion of long-term debt    1,049    3,998    1.5%    5,516    1.9%
    Defe
ed revenue    7,548    5,966    1.6%    5,522    1.6%        Accrued compensation    5,819    6,103    2.4%    6,830    2.4%
    Commercial paper    11,977    11,964    3.3%    5,980    1.8%        Short-term income taxes    718    2,121    0.8%    5,665    2.0%
    Cu
ent portion of long-term debt    6,496    8,784    2.4%    10,260    3.0%        Short-term unearned revenue    24,013    28,905    11.2%    32,676    11.4%
    Total cu
ent liabilities    100,814    115,929    31.7%    105,718    31.2%        Other    7,684    8,744    3.4%    9,351    3.3%
                                Total cu
ent liabilities    55,745    58,488    22.6%    69,420    24.2%
    Long-term debt    97,207    93,735    25.6%    91,807    27.1%
    Other non-cu
ent liabilities    40,415    48,914    13.4%    50,503    14.9%        Long-term debt    76,073    72,242    27.9%    66,662    23.3%
    Total non-cu
ent liabilities    137,622    142,649    39.0%    142,310    42.0%        Long-term income taxes    13,485    30,265    11.7%    29,612    10.3%
    Total liabilities    241,272    258,578    70.7%    248,028    73.3%        Long-term unearned revenue    2,643    3,815    1.5%    4,530    1.6%
    Commitments and contingencies                            Defe
ed income taxes    5,734    541    0.2%    233    0.1%
                                  Operating lease liabilities    5,372    5,568    2.2%    6,188    2.2%
                                Other long-term liabilities    3,549    5,211    2.0%    7,581    2.6%
                                Total liabilities    162,601    176,130    68.0%    184,226    64.3%
                                Commitments and contingencies
    Shareholders’ equity:                            Stockholders’ equity:
    Common stock and additional paid-in capital, $ XXXXXXXXXXpar value: 12,600,000 shares authorized; 4,443,236 and 4,754,986 shares issued and outstanding, respectively    35,867    40201         45,174    13.3%        Common stock and paid-in capital – shares authorized 24,000; outstanding 7,643 and 7,677    69,315    71,223    27.5%    78,520    27.4%
    Retained earnings    98,330    70400     19.2%    45,898    13.6%        Retained earnings    17,769    13,682    5.3%    24,150    8.4%
    Accumulated other comprehensive income/(loss)    -150    (3454)    -0.9%    -584    -0.2%        Accumulated other comprehensive loss    627    -2,187    -0.8%    -340    -0.1%
    Total shareholders’ equity    134,047    107147     29.3%    90,488    26.7%        Total stockholders’ equity    87,711    82,718    32.0%    102,330    35.7%
    Total liabilities and shareholders’ equity    375,319     $ 365725     100.0%    338,516    100.0%        Total liabilities and stockholders' equity    250,312    258,848    100.0%    286,556    100.0%
Cash_Flow
    APPLE CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions    12 Months Ended                        MICROSOFT CASH FLOWS STATEMENTS - USD ($) $ in Millions    12 Months Ended
        Sep. 30, 2017    Sep
Answered Same Day Oct 28, 2021

Solution

Ishmeet Singh answered on Nov 02 2021
154 Votes
Activity Ratios and Profitability Ratios
Review the PowerPoint files on ratios and the other posted material before doing this exercise. A sheet for your answers is at the end of this document.
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Activity Ratios: Inventory Turnover and Average Age of Inventory
1. Trend analysis (Horizontal analysis). Using the template in the answer sheet, calculate Apple and Microsoft’s Inventory turnover ratio and average age of inventory ratios.
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2. In general are the trends good or bad?
a) For Apple:
) For Microsoft:
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Activity Ratio: Receivables Turnove

3. Trend analysis (Horizontal analysis). Using the template in the answer sheet, calculate Apple and Microsoft’s Receivables Turnover.
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4. Compare Apple and Microsoft in terms of their Receivables Turnover ratios. Which company has the better ratio?
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Activity Ratios: Fixed Asset Turnover and Total Asset Turnove
5. Using the template in the answer sheet, calculate Apple and Microsoft’s Fixed Asset Turnover and Total Asset Turnover.
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6. Compare Apple and Microsoft in terms of their ratios Fixed Asset Turnover and Total Asset Turnover. Which company has the better ratios?
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Profitability Ratios
Profitability Ratios: Gross Margin and Operating Margin
7. Calculate Apple and Microsoft’s Gross Margin and Operating Margin.
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8. Compare Apple and Microsoft in terms of their Gross Profit Margin and Operating Profit Margin. Which company has the better ratios?
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Profitability Ratios: Profit Margin and Return on Stockholders’ Equity
9. Calculate Apple and Microsoft’s Net Profit Margin and Return on Stockholders’ Equity ratios.
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10. Compare Apple and Microsoft in terms of their Net Profit Margin and Return on Stockholder’s Equity. Which company has the better Net Profit Margin?
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Short Essay Questions (These need to be typed on separate sheets of paper.
11. What does an Average Age of Inventory of 8.29 days...
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