Income_Statement APPLE CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions12 Months Ended12 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 Millions12 Months Ended12 Months Ended% Change% Change% ChangeMICROSOFT INCOME STATEMENTS - USD ($) shares in Millions, $ in Millions12 Months Ended Sep. 30, 2016Sep. 30, 2017Sep. 29, 2018Sep. 28, 2019Jun. 30, 2016Jun. 30, 2017% ChangeJun. 30, 2018% ChangeJun. 30, 2019% Change Net sales215639 $ 229234 6.30% $ 265595 15.86% $ 260174 -2.04%Revenue84,695 $ 96571 14.02% $ 110360 14.28% $ 125843 14.03% Cost of sales131376 141048 7.36%163756 16.10%161782 -1.21%Cost of revenue32,78034261 4.52%38353 11.94%42910 11.88% Gross margin84263 88186 4.66%101839 15.48%98392 -3.38%Gross margin51,91562310 20.02%72007 15.56%82933 15.17% Operating expenses:Research and development11,98813037 8.75%14726 12.96%16876 14.60% Research and development10045 11581 15.29%14236 22.93%16217 13.92%Sales and marketing14,69715461 5.20%17469 12.99%18213 4.26% Selling, general and administrative14194 15261 7.52%16705 9.46%18245 9.22%General and administrative4,5634481 -1.80%4754 6.09%4885 2.76% Total operating expenses24239 26842 10.74%30941 15.27%34462 11.38%Restructuring1,110306 -72.43%0 -100.00%0 Operating income60024 61344 2.20%70898 15.57%63930 -9.83%Operating income20,18229025 43.82%35058 20.79%42959 22.54% Other income/(expense), net1348 2745 103.64%2005 -26.96%1807 -9.88%Other income, net-431876 -303.25%1416 -95.26%729 -48.52% Income before provision for income taxes61372 64089 4.43%72903 13.75%65737 -9.83%Income before income taxes19,75129901 -77.66%36474 726.70%43688 19.78% Provision for income taxes15685 15738 0.34%13372 -15.03%10481 -21.62%Provision for income taxes2,9534412 763.16%19903 -21.92%4448 -77.65% Net income45687 $ 48351 5.83% $ 59531 23.12% $ 55256 -7.18%Net income16,798 $ 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%Basic2.12 $ 3.29 $ 2.15 -34.65% $ 5.11 137.67% Diluted (in dollars per share)8.31Diluted2.10 $ 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%Basic7,925  7700 7673 -0.35% Diluted (in shares)5500281 Diluted8,0137832 7794 -0.49%7753 -0.53% MICROSOFT COMMON SIZED INCOME STATEMENTS - USD ($) shares in Millions, $ in Millions12 Months Ended APPLE Common-Sized Income StatementSep. 30, 2016Sep. 30, 2017Common SizedSep. 29, 2018Common SizedSep. 28, 2019Common SizedJun. 30, 2016Jun. 30, 2017Common SizedJun. 30, 2018Common SizedJun. 30, 2019Commnn Sized Net sales215639 $ 229234 100% $ 265595 100.00% $ 260174 100.00%Revenue84,695 $ 96571 100.00% $ 110360 100.00% $ 125843 100.00% Cost of sales131376 141048 62%163756 61.66%161782 62.18%Cost of revenue32,78034261 35.48%38353 34.75%42910 34.10% Gross margin84263 88186 38%101839 38.34%98392 37.82%Gross margin51,91562310 64.52%72007 65.25%82933 65.90% Operating expenses:Research and development11,98813037 13.50%14726 13.34%16876 13.41% Research and development10045 11581 5%14236 5.36%16217 6.23%Sales and marketing14,69715461 16.01%17469 15.83%18213 14.47% Selling, general and administrative14194 15261 7%16705 6.29%18245 7.01%General and administrative4,5634481 4.64%4754 4.31%4885 3.88% Total operating expenses24239 26842 12%30941 11.65%34462 13.25%Restructuring1,110306 0.32%0 0.00%0 0.00% Operating income60024 61344 27%70898 26.69%63930 24.57%Operating income20,18229025 30.06%35058 31.77%42959 34.14% Other income/(expense), net2745 1%2005 0.75%1807 0.69%Other income, net-431876 0.91%1416 1.28%729 0.58% Income before provision for income taxes1348 64089 28%72903 27.45%65737 25.27%Income before income taxes19,75129901 30.96%36474 33.05%43688 34.72% Provision for income taxes61372 15738 7%13372 5.03%10481 4.03%Provision for income taxes2,9534412 4.57%19903 18.03%4448 3.53% Net income15685 $ 48351 21% $ 59531 22.41% $ 55256 21.24%Net income16,798 $ 25489 26.39% $ 16571 15.02% $ 39240 31.18% Earnings per share:45687Earnings 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 Basic7746 7700 7673 Diluted (in shares)5500281 5251692 5000109 4648913 Diluted7832 7794 7753 Balance_Sheet APPLE CONSOLIDATED BALANCE SHEETS - USD ($) $ in MillionsSep. 29, 2017Sep. 29, 2018% ChangeSep.. 29, 2019% ChangeMICROSOFT BALANCE SHEETS - USD ($) $ in MillionsJun. 30, 2017Jun. 30, 2018% ChangeJun. 30, 2019% Change Current assets:Current assets: Cash and cash equivalents20,28925,91327.7%48,84488.5%Cash and cash equivalents7,66311,94655.9%11,356-4.9% Marketable securities53,89240,388-25.1%51,71328.0%Short-term investments125,318121,822-2.8%122,4630.5% Accounts receivable, net17,87423,18629.7%22,926-1.1%Total cash, cash equivalents, and short-term investments132,981133,7680.6%133,8190.0% Inventories4,8553,956-18.5%4,1063.8%Accounts receivable, net of allowance for doubtful accounts of $411 and $37722,43126,48118.1%29,52411.5% Vendor non-trade receivables17,79925,80945.0%22,878-11.4%Inventories2,1812,66222.1%2,063-22.5% Other current assets13,93612,087-13.3%12,3522.2%Other5,1036,75132.3%10,14650.3% Total current assets128,645131,3392.1%162,81924.0%Total current assets162,696169,6624.3%175,5523.5% Non-current assets:Non-current assets: Long-Term Marketable Securities194,714170,799-12.3%105,341-38.3%Property and equipment, net of accumulated depreciation of $24,179 $35,330 and $29,22323,73429,46024.1%36,47723.8% Property, plant and equipment, net33,78341,30422.3%37,378-9.5%Operating lease right-of-use assets6,5556,6862.0%7,37910.4% Other non-current assets18,17722,28322.6%32,97848.0%Equity investments6,0231,862-69.1%2,64942.3% Total non-current assets246,674234,386-5.0%175,697-25.0%Goodwill35,12235,6831.6%42,02617.8% Total Assets375,319365,725-2.6%338,516-7.4%Intangible assets, net10,1068,053-20.3%7,750-3.8% Other long-term assets6,0767,44222.5%14,72397.8% Total Assets250,312258,8483.4%286,55610.7% Current liabilities:Current liabilities: Accounts payable49,04955,88813.9%46,236-17.3%Accounts payable7,3908,61716.6%9,3828.9% Short-Term Debt9,072 Other current liabilities25,74433,32729.5%37,72013.2%Current portion of long-term debt1,0493,998281.1%5,51638.0% Deferred revenue7,5485,966-21.0%5,522-7.4%Accrued compensation5,8196,1034.9%6,83011.9% Commercial paper11,97711,964-0.1%5,980-50.0%Short-term income taxes7182,121195.4%5,665167.1% Current portion of long-term debt6,4968,78435.2%10,26016.8%Short-term unearned revenue24,01328,90520.4%32,67613.0% Total current liabilities100,814115,92915.0%105,718-8.8%Other7,6848,74413.8%9,3516.9% Total current liabilities55,74558,4884.9%69,42018.7% Long-term debt97,20793,735-3.6%91,807-2.1%ERROR:#DIV/0! Other non-current liabilities40,41548,91421.0%50,5033.2%Long-term debt76,07372,242-5.0%66,662-7.7% Total non-current liabilities137,622142,6493.7%142,310-0.2%Long-term income taxes13,48530,265124.4%29,612-2.2% Total liabilities241,272258,5787.2%248,028-4.1%Long-term unearned revenue2,6433,81544.3%4,53018.7% Commitments and contingenciesDeferred income taxes5,734541-90.6%233-56.9% Operating lease liabilities5,3725,5683.6%6,18811.1% Other long-term liabilities3,5495,21146.8%7,58145.5% Total liabilities162,601176,1308.3%184,2264.6% Commitments and contingencies Shareholders’ equity:Stockholders’ equity: Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 4,443,236 and 4,754,986 shares issued and outstanding, respectively35,86740201 12.1%45,17412.4%Common stock and paid-in capital – shares authorized 24,000; outstanding 7,643 and 7,67769,31571,2232.8%78,52010.2% Retained earnings98,33070400 -28.4%45,898-34.8%Retained earnings17,76913,682-23.0%24,15076.5% Accumulated other comprehensive income/(loss)-150(3454)2202.7%-584-83.1%Accumulated other comprehensive loss627-2,187-448.8%-340-84.5% Total shareholders’ equity134,047107147 -20.1%90,488-15.5%Total stockholders’ equity87,71182,718-5.7%102,33023.7% Total liabilities and shareholders’ equity375,319 $ 365725 -2.6%338,516-7.4%Total liabilities and stockholders' equity250,312258,8483.4%286,55610.7% APPLE CONSOLIDATED BALANCE SHEETS - USD ($) $ in MillionsSep. 29, 2017Sep. 29, 2018% of Total AssetsSep. 28, 2019% of Total AssetsMICROSOFT BALANCE SHEETS - USD ($) $ in MillionsJun. 30, 2017Jun. 30, 2018% of Total AssetsJun. 30, 2019% of Total Assets Current assets:Current assets: Cash and cash equivalents20,28925,9137.1%48,84414.4%Cash and cash equivalents7,66311,9464.6%11,3564.0% Marketable securities53,89240,38811.0%51,71315.3%Short-term investments125,318121,82247.1%122,46342.7% Accounts receivable, net17,87423,1866.3%22,9266.8%Total cash, cash equivalents, and short-term investments132,981133,76851.7%133,81946.7% Inventories4,8553,9561.1%4,1061.2%Accounts receivable, net of allowance for doubtful accounts of $411 and $37722,43126,48110.2%29,52410.3% Vendor non-trade receivables17,79925,8097.1%22,8786.8%Inventories2,1812,6621.0%2,0630.7% Other current assets13,93612,0873.3%12,3523.6%Other5,1036,7512.6%10,1463.5% Total current assets128,645131,33935.9%162,81948.1%Total current assets162,696169,66265.5%175,55261.3% Non-current assets:Non-current assets: Long-Term Marketable Securities194,714170,79946.7%105,34131.1%Property and equipment, net of accumulated depreciation of $24,179 $35,330 and $29,22323,73429,46011.4%36,47712.7% Property, plant and equipment, net33,78341,30411.3%37,37811.0%Operating lease right-of-use assets6,5556,6862.6%7,3792.6% Other non-current assets18,17722,2836.1%32,9789.7%Equity investments6,0231,8620.7%2,6490.9% Total non-current assets246,674234,38664.1%175,69751.9%Goodwill35,12235,68313.8%42,02614.7% Total Assets375,319365,725100.0%338,516100.0%Intangible assets, net10,1068,0533.1%7,7502.7% Other long-term assets6,0767,4422.9%14,7235.1% Total Assets250,312258,848100.0%286,556100.0% Current liabilities:Current liabilities: Accounts payable49,04955,88815.3%46,23613.7%Accounts payable7,3908,6173.3%9,3823.3% Short-Term Debt9,072 Other current liabilities25,74433,3279.1%37,72011.1%Current portion of long-term debt1,0493,9981.5%5,5161.9% Deferred revenue7,5485,9661.6%5,5221.6%Accrued compensation5,8196,1032.4%6,8302.4% Commercial paper11,97711,9643.3%5,9801.8%Short-term income taxes7182,1210.8%5,6652.0% Current portion of long-term debt6,4968,7842.4%10,2603.0%Short-term unearned revenue24,01328,90511.2%32,67611.4% Total current liabilities100,814115,92931.7%105,71831.2%Other7,6848,7443.4%9,3513.3% Total current liabilities55,74558,48822.6%69,42024.2% Long-term debt97,20793,73525.6%91,80727.1% Other non-current liabilities40,41548,91413.4%50,50314.9%Long-term debt76,07372,24227.9%66,66223.3% Total non-current liabilities137,622142,64939.0%142,31042.0%Long-term income taxes13,48530,26511.7%29,61210.3% Total liabilities241,272258,57870.7%248,02873.3%Long-term unearned revenue2,6433,8151.5%4,5301.6% Commitments and contingenciesDeferred income taxes5,7345410.2%2330.1% Operating lease liabilities5,3725,5682.2%6,1882.2% Other long-term liabilities3,5495,2112.0%7,5812.6% Total liabilities162,601176,13068.0%184,22664.3% Commitments and contingencies Shareholders’ equity:Stockholders’ equity: Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 4,443,236 and 4,754,986 shares issued and outstanding, respectively35,86740201 45,17413.3%Common stock and paid-in capital – shares authorized 24,000; outstanding 7,643 and 7,67769,31571,22327.5%78,52027.4% Retained earnings98,33070400 19.2%45,89813.6%Retained earnings17,76913,6825.3%24,1508.4% Accumulated other comprehensive income/(loss)-150(3454)-0.9%-584-0.2%Accumulated other comprehensive loss627-2,187-0.8%-340-0.1% Total shareholders’ equity134,047107147 29.3%90,48826.7%Total stockholders’ equity87,71182,71832.0%102,33035.7% Total liabilities and shareholders’ equity375,319 $ 365725 100.0%338,516100.0%Total liabilities and stockholders' equity250,312258,848100.0%286,556100.0% Cash_Flow APPLE CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions12 Months EndedMICROSOFT CASH FLOWS STATEMENTS - USD ($) $ in Millions12 Months Ended Sep. 30, 2017Sep
Answered Same DayOct 28, 2021

Answer To: Income_Statement APPLE CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in...

Ishmeet Singh answered on Nov 02 2021
152 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:
b) For Microsoft:
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Activity Ratio: Receivables Turnover

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 Turnover
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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