Apple Inc CONSOLIDATED STATEMENT OF OPERATIONS - Vertical Analysis SPREADSHEET DIRECTIONS: (In millions, except number of shares which are reflected in thousands and per share amounts) Apple Inc. wants to conduct a Vertical Analysis of their last 3 years to Sept. 30 Sept. 24, Sept. 24, Percentage Percentage NET SALES: 2022 2021 Percentage determine their success within the trends or patterns that occur. 2023 Products $ 298,085 $ 316,199 $ 297,392 Services 85,200 78,129 8,425 Utilize the provided Income Statement to complete the Vertical Analysis. TOTAL NET SALES: 383,285 394,328 365,817 COST OF GOODS SOLD: Utilize the vertical analysis equation to complete the missing yellow Products 189,282 201,471 192,266 cells. (You will need to know this equation.) Services 24,855 22,075 20,715 TOTAL COST OF GOODS SOLD 214,137 223,546 212,981 GROSS PROFIT 169,148 170,782 152,836 ESSAY QUESTION: OPERATING EXPENSE: Research and development 29,915 26,251 21,914 Explain why Vertical Analysis is an important evaluation process for a Selling, general and administrative 24,932 25,094 21,973 company. Explain the trends you see for Apple Inc. based on the Vertical Total operating expenses 54,847 51,345 43,887 Operating income 114,301 119,437 108,949 Other income/(expenses),net (565 (334 258 Income before provision of income taxes 113,736 119,103 109,207 Provision for income taxes 16,741 19,300 14,527 NET INCOME $ 96,995 $ 99,803 $ 94,680I Apple Inc CONSOLIDATED STATEMENT OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) Sept.24, | Sept.24, NET SALES: 2022 2021 2020 Products $ 298,085 | $ 316,199 | $ 297,392 | $ 220,747 Services 85,200 78,129 68,425 53,768 TOTAL NET SALES: 383285 | 394,328 | 365817 | 274,515 COST OF GOODS SOLD: Products 189,282 | 201,471 | 192,266 | 151,286 Services 24,855 22,075 20,715 18,273 TOTAL COST OF GOODS SOLD 214,137 | 223546 | 212,981 | 169,559 GROSS PROFIT 169,148 | 170,782 | 152,836 | 104,956 OPERATING EXPENSE: Research and development 29,915 26,251 21,914 18,752 Selling, general and administrative 24,932 25,094 21,973 19,916 Total operating expenses 54,847 51,345 43,887 38,668 Operating income 114,301 119,437 108,949 66,288 Other income/(expenses),net (565) (334) 258 803 Income before provision of income taxes 113,736 119,103 109,207 67,091 Provision for income taxes 16,741 19,300 14,527 9,680 NET INCOME S 96,995 |S 99,803 |S 94680 |S 57411 EARNINGS PER SHARE: Basic 6.16 6.15 Diluted 6.13 6.11 SHARES USED IN COMPUTING EARNINGS PER SHARE: Basic 15,744,231 | 16,215,963 | 16,701,272 | 17,352,119 Diluted 15,812,547 | 16,325,819 | 16,864,919 | 17,528,214 Apple Inc COMNSOLIDATED BALANCE SHEET {In millions, except number of shares which are reflected in thousands and per share amounts) CURRENT ASSETS: Cash and cash equivalents Marketable securities Accounts receivable, net Inventories Wendor non-trade receivables Other current assets NON-CURRENT ASSETS Marketable securities 120,805 127,877 100,887 Property, plant and equipment, net 42,117 35,440 36,766 Other non-current assets 54,428 48,849 42522 TOTAL NON-CURRENT ASSETS 217,350 216,166 180,175 TOTAL ASSETS 352,755 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts Payable Other current liabilities Deferred revenue Commercial paper Term debt NON-CURRENT LIABILITIES Term Debt 95,281 98,959 109,106 98,667 Other non-current liahilities 45 848 45,142 53,325 54,450 TOTAL NON-CURRENT LIABILITIES 145,129 148,101 162,431 153,157 TOTAL LIABILITIES 290,437 302,083 287,912 258,549 COMMITMENTS AND CONTINGENCIES SHAREHOLDERS EQUITY Commaon stock and additional paid-in capital, 0.00001 par value 50,400,000 Shares authorized; 15,943,425 and 16,426,786 shares issued and outstanding, respectively 73,812 64,849 Retained earnings/(Accumulated deficit) (214) (3,068) Accumulated other comprehensive income/(loss) (11,453) (11,109} TOTAL SHAREHOLDERS EQUITY 652,146 50,672 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 352,583 352,755 323,888 ] Apple Inc CONSOLIDATED STATEMENT OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) Sept. 30 Sept. 24, Sept. 24, Sept. 26, 2023 2022 2021 2020 Cash, cash equivalents and restricted cash, beginning balances S 24,977 35,929 39,789 50,224 OPERATING ACTIVITIES: Net Income 96,995 99,803 94,680 57,411 Adjustments to reconcile net income to cash generated by operating activities Depreciation and amortization 11,519 11,104 11,284 11,056 share-based compensation expense 10,833 9,038 7,906 6,829 Other -2,227 1,006 -4,921 (312) Changes in operating assets and liabilities: Accounts receivable, net (1,688) (1,823) (10,125) 6,917 Inventories 1,271 1,484 (3,903) (127) Vendor non-trade receivables (1,618) (7,520) (2,642) 1,553 Other current and non-current assets (5,684) (6,499) (8,042) (9,588) Accounts Payable (1,889) 9,448 12,326 (4,062) Other current and non-current liabilities 3,031 6,110 7,475 10,997 CASH GENERATED BY OPERATING ACTIVITIES 110,543 122,151 104,038 80,674 INVESTING ACTIVITES: Purchase of marketable securities (29,513) (76,923) (109,558) (114,938) Proceeds from maturities of marketable securities 39,686 29,917 59,023 69,918 Proceeds from sale of marketable securities 5,828 37,446 47,460 50,473 Payments for acquisition of property, plant and equipment (10,959) (10,708) (11,085) (7,309) Payments made in connection with business acquisitions, net (3086) (33) (1,524) Other (1,337) (1,780) (352) (909) CASH USED IN INVESTING ACTIVITIES 3,705 (22,354) (14,545) (4,289) FINANCING ACTIVITIES: Payments for taxes related to net share settlement of equity award (5,431) (6,223) (6,556) (3,634) Payment for dividends and dividend equivalents (15,025) (14,841) (14,467) (14,081) Repurchases of commaon stock (77,550) (89,402) (85,971) (72,358) Proceeds from issuance of term debt, net 5,228 5,465 20,393 16,091 Repayment of term debt (9,543) (8,750) (12,629) Proceeds from/(Repayments of) commercial paper, net 3,955 1,022 (963) Other (160) 976 754 CASH USED IN FINANCING ACTIVITIES (110,749) (93,353) (86,820) Decrease in cash, cash equivalents and restricted cash (10,952) (3,860) (10,435) Cash, cash equivalents and restricted cash, ending balances S 30,737 24,977 35,929 39,789 Supplemental cash flow disclosure: Cash paid for income taxes, net S 18,679 Cash paid for interest S 3,803 Final Financial Analysis - Apple Inc. 2021 to 2023 Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. It also provides AppleCare support and cloud services; and operates various platforms, including the App Store that allow customers to discover and download applications and digital content, such as books, music, video, games, and podcasts. Your final will analyze Apple Inc. and evaluate how they are doing financially in 2023. o You will conduct a comparative analysis of Apple's financial statements from the years 2022 to 2023 looking at ratios to determine their profitability, liquidity, solvency, and efficiency in conducting business. ' o You will complete a Horizontal and Vertical Analysis of the Income Statements from the years 2021, 2022, and 2023 to determine trends or changes by evaluating increases and decreases within the statement line items. o You will aid Apple in determining the best investment opportunity by analyzing the Return on Investment and Payback Periods for the purchase of a new factory. o And finally, you will help determine which factory will provide the best break-even option on the manufacturing and production of the new I[Phone 14. o Along with your overview of Apple Inc. you will present your knowledge of Business Forms, the four Financial Statements and their equations. You will prepare a Balance Sheet and an Income statement for Apple Inc. and you will provide your knowledge of the profitability, liquidity, solvency, and efficiency ratios