On Your Own: Prepare a DRAFT financial analysis in Excel. The spreadsheet should include 4 worksheets as follows: 1. Company information 2. Income Statement 3. Balance Sheet 4. Financial statement ratios related to accounts specific to cost accounting for your corporation. Vertical and horizontal analysis are important, particularly for the income statement. Consider cost components. How are they changing from year to year? How is the balance sheet, especially stockholders' equity, changing? For example, ratios related to the three inventory accounts, calculation of cost of goods sold, different product line sales in relation to total sales, etc. Be creative and create meaningful cost accounting ratios, variances, etc. to assist management's decision making. a. Formulas must be embedded into the cells (preferable) or written beside the cells. Step 1) Post your DRAFT Excel file, DIRECT LINK to your corporation's SEC 10-K (include page numbers of the financial statements) in the SEC 10K Peer Review Discussion topic. Company Name Ticker Symbol Stock Market State Jurisdiction Address Zip Code IRS Employer ID Link to 10-K Abigail Opsahl Apple, Inc. APPL NASDAQ California 1 Infinite Loop Cupertion, California 95014 94-2404110 http://www.sec.gov/Archives/edgar/data/320193/000119312514383437/d783162d10k.htm#toc783162_11 162_11 Consolidated Statements of Comprehensive Income (in millions) Years ended September 27, $ September 29, 2014 Net income September 28, 2013 2012 39,510 $ 37,037 $ 41,733 Other comprehensive income/(loss): Change in foreign currency translation, net of tax effects of $50, $35 and $13, respectively (137 ) (112 ) (15 ) Change in unrecognized gains/losses on derivative instruments: Change in fair value of derivatives, net of tax benefit/(expense) of $(297), $(351) and $73, respectively 1,390 522 (131 ) Adjustment for net losses/(gains) realized and included in net income, net of tax expense/ (benefit) of $(36), $255 and $220, respectively 149 (458 ) (399 ) Total change in unrecognized gains/losses on derivative instruments, net of tax 1,539 64 (530 ) 285 (791 ) 715 (134 ) (131 ) (114 ) 151 (922 ) 601 1,553 (970 ) 56 Change in unrealized gains/losses on marketable securities: Change in fair value of marketable securities, net of tax benefit/(expense) of $(153), $458 and $(421), respectively Adjustment for net losses/(gains) realized and included in net income, net of tax expense/ (benefit) of $71, $82 and $68, respectively Total change in unrealized gains/losses on marketable securities, net of tax Total other comprehensive income/(loss) Total comprehensive income $ 41,063 $ 36,067 $ 41,789 Consolidated Balance Sheets (in millions, except number of shares which are reflected in thousands and par value) September 27, September 28, 2014 2013 ASSETS: Current assets: Cash and cash equivalents Short-term marketable securities Accounts receivable, less allowances of $86 and $99, respectively Inventories Deferred tax assets Vendor non-trade receivables Other current assets $ 13,844 11,233 26,287 17,460 13,102 2,111 1,764 4,318 3,453 9,759 7,539 9,806 6,882 Total current assets $ 14,259 68,531 73,286 Long-term marketable securities 130,162 106,215 Property, plant and equipment, net 20,624 16,597 Goodwill 4,616 1,577 Acquired intangible assets, net 4,142 4,179 Other assets 3,764 5,146 Total assets $ 231,839 $ LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities: Accounts payable Accrued expenses 207,000 $ 30,196 $ 22,367 18,453 13,856 Deferred revenue 8,491 7,435 Commercial paper 6,308 0 Total current liabilities 63,448 43,658 Deferred revenue - non-current 3,031 2,625 Long-term debt 28,987 16,960 Other non-current liabilities 24,826 20,208 Total liabilities 120,292 83,451 Commitments and contingencies Shareholders' equity: Common stock and additional paid-in capital, $0.00001 par value; 12,600,000 shares authorized; 5,866,161 and 6,294,494 shares issued and outstanding, respectively 23,313 19,764 Retained earnings 87,152 104,256 Accumulated other comprehensive income/(loss) 1,082 (471 ) Total shareholders' equity 111,547 Total liabilities and shareholders' equity 123,549 $ 231,839 $ 207,000 Consolidated Statements of Operations (in millions, except number of shares which are reflected in thousands and per share amounts) Years ended September 27, Net sales Cost of sales September 28, 2014 $ 182,795 112,258 2013 Gross margin September 29, $ 170,910 106,606 70,537 156,508 87,846 64,304 68,662 Operating expenses: 2012 $ Research and development 6,041 4,475 3,381 Selling, general and administrative 11,993 10,830 10,040 Total operating expenses 18,034 15,305 13,421 Operating income 52,503 48,999 55,241 Other income/(expense), net 980 1,156 522 Income before provision for income taxes 53,483 50,155 55,763 Provision for income taxes 13,973 13,118 14,030 Net income $ 39,510 $ 37,037 $ 41,733 Earnings per share: Basic $ 6.49 $ 5.72 $ 6.38 Diluted $ 6.45 $ 5.68 $ 6.31 Shares used in computing earnings per share: Basic Diluted Cash dividends declared per common share 6,085,572 $ 6,477,320 6,543,726 6,122,663 6,521,634 6,617,483 1.82 1.64 $ $ 0.38 Main Ratios Current Quick Total Debt to Total Asset Pre-Tax Return on Net Worth Pre-Tax Return on Assets Equation Current Assets/Current Liabilities (Current Assets - Inventories)/Current Liabilties Total Liabilities/Total Assets Pre Tax Profit/Net Sales Pre Tax Profits/Total Assets Additional Ratios Net Profit Margin Return on Equity Net Income/Net Sales Net Income/Shareholders Equity Activity Ratios Accounts Receivable Turnover Collection Days Inventory Turnover Accounts Payable Turnover Payment Days Total Asset Turnover Debt Ratios Debt to Equity Ratio Current Liab. To Liab. Apple Inc. 1.08 1.05 0.2161437676 0.3542004716 Net Credit Sales/Average Accounts Receivable 365/Receivable Turnover Ratio Sales/Inventory 11.9622406911 30.5126781367 86.5916627191 Net Sales/Average Total Assets 41.0314253648 Total Liabilities/Shareholders' Equity Total Current Liabilities/Total Liabilities 1.0783974468 0.527449872