Business

Apple is company that manufactures electronics and computer software. They are well known for Mac computers, iPhones, iPods, and iPads.

Balance Sheet:

http://finance.yahoo.com/q/bs?s=AAPL+Balance+Sheet&annual

Income Statement:

http://finance.yahoo.com/q/is?s=AAPL+Income+Statement&annual

* Perform horizontal analysis of the business’s income statement.   

Sept 2010 Sept 2009 Horizontal Analysis

Total Revenue 65,225,000 42,905,000 52%

Cost of Revenue 39,541,000 25,683,000 54%

Gross Profit 25,684,000 17,222,000 49%

Research & Development 1,782,000 1,333,000 34%

Selling General & Admin 5,517,000 4,149,000 33%

Operating Income 18,385,000 11,740,000 57%

Total Other Income Net 155,000 326,000 -53%

Earning before Interest and Tax 18,540,000 12,066,000 54%

Income before Tax 18,540,000 12,066,000 54%

Income Tax Expense 4,527,000 3,381,000 18%

Net Income For Cont. Ops 14,013,000 8,235,000 70%

Net Income 14,013,000 8,235,000 70%

* Perform vertical analysis of the business’s balance sheet (asset section only). 

Sept 2010 Sept 2009

Cash and Cash Equivalents 11,261,000 27% 5,263,000 16.6%

Short Term Investments 14,359,000 34.5% 18,201,000 57.7%

Net Receivables 11,560,000 27.7% 6,192,000 19.6%

Inventory 1,052,000 2.5% 455,000 1.4%

Other Current Assets 3,447,000 8.2% 1,444,000 4.6%

Total Current Assets 41,678,000 31,555,000

* Is the trend becoming more favorable, unfavorable or remaining constant? Explain your answer.

The trend is favorable, all except short-term investments, which is drastically lower in 2010. Other than that the trends are higher in 2010 which shows that Apple is doing better financially in 2010.

* Working Capital

2010 2009

41,678,000/27,392,000 31,555,000/15,861,000

1.52 1.99...