Content and values:Part 1: Financial reporting in the chemical industry 64 points(1) Common-size analysis (i.e., vertical analysis; not necessary to show equations andcalculations)(2) Liquidity ratios (show equations and calculations underneath the table)(3) Solvency ratios (show calculations and calculations underneath the table)(4) DuPont Model (show calculations and calculations underneath the table)Part 2: Apple Inc. Case(1) Concept review - Revenue recognition(2) Trend analysis(3) Other 36 pointsTotal: 100 points3. Your answers will be graded on accuracy. Percentage values should be rounded to two decimal places,for example, 3.50%. Values should be rounded to two decimal places as well, for example, XXXXXXXXXXA single electronic pdf copy of solutions for this project is due Friday, June 10, XXXXXXXXXX:59 pm).Part 1: Chemical industry:1) No more than four pages;2) Delete the financial statements (i.e., Sheet 1) in the part 1 excel file.Part 2: Apple:1) No more than two page (label your answer well).Note:Convert all of your answer to a single pdf file and then name it as Last name_First name.
PART 2: Apple Inc.Apple Inc. designs, manufactures, and markets personal computers, mobile communicationdevices, and portable digital music and video players and sells a variety of related software,services, peripherals, and networking solutions. The Company sells its products worldwidethrough its online stores, its retail stores, its direct sales force, and third-party wholesalers,resellers, and value-added resellers. Your parents are considering investing in Apple Inc.common stock. They ask you, as an accounting expert, to make an analysis of the company forthem. Apple’s financial statements and 10-K file are provided.Instructions:(1) Concept review(a) In your own words, define “Revenues.” Explain how revenues are different from“gains.”(b) What is performance obligation and how is it related to revenue recognition?(c) In general, what incentives do managers have to make self-serving revenuerecognition choices?(2) Make a 3-year trend analysis, using 2011 as the base year, of (1) net sales and (2) netincome. Comment on the significance of the trend results.(3) What information outside the annual report may also be useful to your parents in makinga decision about Apple?