Does not let me upload whole document. I chose Apple and Dell

Select two companies in the same industry that are publicly traded in a US stock market (ex: NYSE). It must be companies that sell inventory. You will need to use their financial statements for the two most recent fiscal years. They must be obtained from their 10-K filing with the SEC (sec.gov).

Requirements:

1. Using Excel, prepare common size financial statements for both years for each company.

2. Compute the following ratios using Excel for the past two years for each company (you must show all calculations):

Liquidity:

a. Current ratio b. Acid-Test ratio c. Collection period d. Days to sell inventory

Capital Structure and Solvency:

a. Total debt to equity b. Long-term debt to equity c. Times interest earned

Return on Investment: a. Return on assets b. Return on common equity

Operating Performance: a. Gross profit margin b. Operating profit margin (pre-tax) c. Net profit margin

Asset Utilization: a. Cash turnover b. Accounts receivable turnover c. Inventory turnover d. Working capital turnover e. PPE turnover f. Total asset turnover

Market Measures: a. Price-to-earnings b. Earnings yield c. Dividend yield d. Dividend yield payout rate e. Price-to-book

3. Obtain copies of the most recently filed quarterly financial statements (10-Q) from the SEC website.

4. Read all of the notes to the financial statements.

5. Listen to the most recent analyst conference call. There should be a link on the companys website in the investor relations section where you can listen to the recording.

6. Using the information from 1 5 above, prepare a 5-6 page pager discussing these various items:

a. Description of the business and main product(s) sold? Who are their major competitors? What countries do they mainly operate in?

b. Liquidity.

c. Capital Structure.

d. Return on Investment, Operating Performance and Asset Utilization.

e. Market Measures.

f. From the Notes, what method of accounting do they use for the following items (if applicable):

Leases Inventory Capitalization of Long Term Assets Depreciation Intangibles Investments

g. What disclosure (if any) do they have about: Contingencies Accounting changes Financial Instruments and Derivatives Long-Term Debt Incentive Programs (Stock Options, Stock Appreciation Rights, Etc) Pension/Retirement Benefits Income Taxes (and Deferred Taxes)

h. Are there any additional disclosures that would be material to analyzing the company?

i. Do your companies have Other Comprehensive Income? If so, what items are they reporting as part of Other Comprehensive Income and how do they impact the ratios?

j. Do they use the equity method for any of their investments? Are there any investments where they have a controlling interest and there is a non-controlling interest?

k. Are they reporting any special items (unusual or infrequent) or any discontinued operations?

l. During the conference call, did management mention any events that impacted the financial statements? If so, how? Did they discuss any forecast and projections? If so, how will they impact any of the ratios?

m. Is management using any accounting policies to improve any of the ratios? For example, do they have operating leases versus capital leases that impact many of the ratios?

n. What is the companys credit rating?

o. Which company would you invest in? Why?

2/15/20 Form 10-K f Conten Note 8-Comprehensive Income Comprehensive income consists of two components, net income and OCI. OCI refers to revenue, expenses, and gains and losses that under GAAP are recorded as an element of shareholders' equity but are excluded from net income. The Company's OCI consists of foreign currency translation adjustments from those subsidiaries not using the U.S. dollar as their functional currency, net deferred gains and losses on certain derivative instruments accounted for as cash flow hedges and unrealized gains and losses on marketable securities classified as available-for-sale. The following table shows the pre-tax amounts reclassified from AOCI into the Consolidated Statements of Operations, and the associated financial statement line item, for 2015 and 2014 (in millions): Comprehensive Income Components Financial Statement Line Item 2015 2014 Unrealized (gains osses on derivative instruments: Foreign exchange contracts Revenue 2,432 449 Cost of sales 2,168 (295 Other income (expense), net 456 Interest rate contracts Other income (expense), net 17 (4,127) 85 Unrealized (gains osses on marketable securities Other income/(expense), net 205 4,036) S 20) Total amounts reclassified from AOCI The following table shows the changes in AOCI by component for 2015 (in m Ons Cumulative Unrealized Unrealized Gains/Losses Gains/Losses Foreign Currency on Derivative on Marketable Translation nstruments Secu Tota cs Balance at September 28, 2013 05) 175) (191) (471) Other comprehensive income/(loss) before reclassifications (187 687 438 938 Amounts reclassified from AOCI 185 205 20 (333) (82) (365 Tax effect 50 Other comprehensive income/(loss) 137 539 51 1,553 Balance at September 27, 2014 242 364 40 082 other comprehensive income/(loss) before reclassifications (612 3,346 747 987 Amounts reclassified from AOCI 4,127) (4,036 ax effect 201 189 232 622 other comprehensive income (loss) (411) (592) (424) (1,427) 653) S 772 (464) (345) Balance at September 26, 2015 Apple Inc. I 2015 Form 10-K 161 https:iwww.sec.govi Archives/edgaridata 320193 0011931251535635 l/d17062d 10k.htm 6984 2/15/20 Form 10-K f Conten Note 8-Comprehensive Income Comprehensive income consists of two components, net income and OCI. OCI refers to revenue, expenses, and gains and losses that under GAAP are recorded as an element of shareholders' equity but are excluded from net income. The Company's OCI consists of foreign currency translation adjustments from those subsidiaries not using the U.S. dollar as their functional currency, net deferred gains and losses on certain derivative instruments accounted for as cash flow hedges and unrealized gains and losses on marketable securities classified as available-for-sale. The following table shows the pre-tax amounts reclassified from AOCI into the Consolidated Statements of Operations, and the associated financial statement line item, for 2015 and 2014 (in millions): Comprehensive Income Components Financial Statement Line Item 2015 2014 Unrealized (gains osses on derivative instruments: Foreign exchange contracts Revenue 2,432 449 Cost of sales 2,168 (295 Other income (expense), net 456 Interest rate contracts Other income (expense), net 17 (4,127) 85 Unrealized (gains osses on marketable securities Other income/(expense), net 205 4,036) S 20) Total amounts reclassified from AOCI The following table shows the changes in AOCI by component for 2015 (in m Ons Cumulative Unrealized Unrealized Gains/Losses Gains/Losses Foreign Currency on Derivative on Marketable Translation nstruments Secu Tota cs Balance at September 28, 2013 05) 175) (191) (471) Other comprehensive income/(loss) before reclassifications (187 687 438 938 Amounts reclassified from AOCI 185 205 20 (333) (82) (365 Tax effect 50 Other comprehensive income/(loss) 137 539 51 1,553 Balance at September 27, 2014 242 364 40 082 other comprehensive income/(loss) before reclassifications (612 3,346 747 987 Amounts reclassified from AOCI 4,127) (4,036 ax effect 201 189 232 622 other comprehensive income (loss) (411) (592) (424) (1,427) 653) S 772 (464) (345) Balance at September 26, 2015 Apple Inc. I 2015 Form 10-K 161 https:iwww.sec.govi Archives/edgaridata 320193 0011931251535635 l/d17062d 10k.htm 6984