Apple INC.: MANAGING A GLOBAL SUPPLY CHAIN. Case Study

1. Financial analysis. Conduct a thorough financial analysis.

Objectives

The objectives of the financial analysis of a company in the case analysis are:

1. To establish the current financial health of the company using data provided in the case.

2. To use conclusions from the financial analysis as one of the metrics to establish whether the company's strategy has been a success.

3. To draw conclusions from the financial analysis about whether the financials rate a constraint on future strategic growth or whether the financials are a facilitator for enhancing future growth.

Ratio Analysis

Profitability, Liquidity, Leverage, and Activity ratios are important, especially the Current Ratio, and Debt-to-Equity ratio. Different industries have different activity ratios that are important, for example, Retail - inventory turnover, sales/square foot; Airlines - cost/seat mile. Identify the activity ratio for the industry covered by the case. Other ratios that may be important: Dividend payout; P/E Some ratios are more relevant if you have the industry ratios

9. value: 5.00 points A difference between debt financing and equity financing is that: O debt financing must be repaid, while repayment of equity financing is not required. O equity financing must be repaid, while repayment of debt financing is not required. O only debt financing can be used to purchase assets. O only equity financing can be used to purchase assets.A difference between debt financing and equity financing is that: Multiple Choice O debt financing must be repaid, while repayment of equity financing is not required. O equity financing must be repaid, while repayment of debt financing is not required. O only debt financing can be used to purchase assets. O only equity financing can be used to purchase assets.Answer: Reducing the number of December advertising spots and increasing the number to be run in January. Acceptable As the Decisions taken by company, it is a business related decision. Giving salespeople a double bonus to exceed December targets. Acceptable Since this offer is for motivating the employees and also to push the business and it is 3?. ethical way of improving business. 3. Extending the close of the fiscal year beyond December 31 so that some sales from next year are counted in the current fiscal year. Un accepted As it is against the rules of the maintaining accounts 4. Persuading customers to accept merchandise for shipment in December that they would normally not order until the following year. Acceptable As there is no bribes are offered to persuade the customer and sales are occurred in December month 5. Altering dates on shipping documents so that sales made in January of the next year appear to have occurred in December of the current year. Unaccepted As it is up ethical and against GAAP E. Deferring advertising costs by asking the outside advertising agency to delay sending out bills for December advertisements until January or by having the agency indicate that advertisements run in December were run in January. Unacceptable As the expenses spent on December and recording forJanuary F. Defer performing routine monthly maintenance on equipment by an outside vendor until January. Accepted; g the expenses not actually spent not on December. What should you do if the president suggests that these actions are taken in every division of 321 and that the consumer division will be greatly harmed if it does not present \"better" results than 3% growth