Question: Vertical and Horizontal Analysis for APPLE - you will need the Balance Sheet, Income statement and statement of Cash Flows for years 2019-2017 Analysis. Use

Vertical and Horizontal Analysis for APPLE - you will need the Balance Sheet, Income statement and statement of Cash Flows for years 2019-2017

Analysis. Use this section to present your findings based on quantitative and qualitative analysis of the financial statements. Include a copy of the financial statements and any ratios or analysis in an appendix as support for your discussion. In particular, this section should cover:

d) Vertical Analysis. Perform a vertical analysis of the income statement and the balance sheet from the most recent three years in order to answer the following questions. Be sure to include supporting calculations and a vertical analysis spreadsheet in an appendix.

1. Does any items in your vertical analysis stand out? Why or why not? Be sure to provide specific examples and explain what elements you considered in arriving at your answer.

2. What does your vertical analysis suggest for managing the company's financial health? Be sure to justify your response. For example, are there things the company might want to look at more closely? Why or why not?

3. What does your vertical analysis suggest with respect to how potential investors would view the company? Justify your response. For example, are there items that might make potential investors less likely to buy the company's stock? Are there items that might make potential creditors wary about lending to the company? Why or why not?

e) Horizontal Analysis. Perform a horizontal analysis of the same key performance measures covered by your vertical analysis to examine trends for the company over the most recent three-year time period. Use your analysis to answer the following questions and include supporting calculations and horizontal analysis spreadsheet in an appendix.

1. Does any items in your horizontal analysis stand out? Why or why not? Be sure to explain what elements you considered in arriving at your answer.

2. What does your horizontal analysis suggest for managing the company's financial health? Be sure to justify your response. For example, are there things the company might want to look at more closely? Why or why not?

3. What does your horizontal analysis suggest with respect to how potential investors would view the company? Justify your response. For example, are there any items that might make potential investors less likely to buy the company's stock? Are there items that might make potential creditors wary about lending to the company? Why or why not?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!