Question

Perform a horizontal analysis of the balance sheet of the Fortune 500 company, Apple. Then please summarize the balance sheet results of the horizontal analysis. Simply select some of the higher or lower %s to discuss. Focus on items you feel are more relevant and telling of the company operations. For example, you could write one paragraph on each section of the balance sheet i.e. assets, liabilities, equity.

Please use the following balance sheets.

Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 29, 2018 September 30, 2017 ASSETS: Current assets: Cash and cash equivalents Marketable securities Accounts receivable, net Inventories Vendor non-trade receivables Other current assets Total current assets 25,913 $ 40,388 23,186 3,956 25,809 12,087 131,339 20,289 53,892 17,874 4,855 17,799 13,936 128,645 Non-current assets: Marketable securities Property, plant and equipment, net Other non-current assets Total non-current assets Total assets 170,799 41,304 22,283 234,386 365,725 194,714 33,783 18,177 246,674 375,319 $ $ LIABILITIES AND SHAREHOLDERS' EQUITY: $ $ Current liabilities: Accounts payable Other current liabilities Deferred revenue Commercial paper Term debt 55.888 32,687 7,543 11,964 8,784 116,866 44.242 30,551 7,548 11,977 6,496 100,814 Total current liabilities Non-current liabilities: Deferred revenue Term debt Other non-current liabilities Total non-current liabilities Total liabilities 2,797 93,735 45,180 141,712 258,578 2,836 97,207 40,415 140,458 241,272 Commitments and contingencies Shareholders' equity: Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 4,754,986 and 5,126,201 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income (loss) Total shareholders' equity Total liabilities and shareholders' equity 40,201 70,400 (3,454) 107,147 365,725 35,867 98,330 (150) 134,047 375,319 S S See accompanying Notes to Consolidated Financial Statements. Apple Inc. I 2018 Form 10-K 140

Answer 1

Correct Answer:

Apple inc
Horizontal analysis balance sheets
	2019	2018	$ change	% change
Assets:
Current Assets:
Cash and cash equivalents	$            48,844	$            25,913	$             22,931	88.49%
Marketable securities, net	$            51,713	$            40,388	$             11,325	28.04%
Accounts receivables, net	$            22,926	$            23,186	$                 (260)	-1.12%
Inventories	$              4,106	$              3,956	$                   150	3.79%
vendor non-trader receivables	$            22,878	$            25,809	$             (2,931)	-11.36%
other current assets	$            12,352	$            12,087	$                   265	2.19%
total current assets	$        1,62,819	$        1,31,339	$             31,480	23.97%
Non-current assets			$                      -
Marketable securities	$        1,05,341	$        1,70,799	$           (65,458)	-38.32%
property, plant and equipment, net	$            37,378	$            41,304	$             (3,926)	-9.51%
other non-current assets	$            32,978	$            22,283	$             10,695	48.00%
total non-current assets	$        1,75,697	$        2,34,386	$           (58,689)	-25.04%
total assets	$        3,38,516	$        3,65,725	$           (27,209)	-7.44%
Liabilities and shareholders' equity:
Current liabilities
Accounts payable	$            46,236	$            55,888	$             (9,652)	-17.27%
other current liabilities	$            37,720	$            33,327	$               4,393	13.18%
Deferred revenue	$              5,522	$              5,966	$                 (444)	-7.44%
commercial paper	$              5,980	$            11,964	$             (5,984)	-50.02%
term debt	$            10,260	$              8,784	$               1,476	16.80%
total current liabilities	$        1,05,718	$        1,15,929	$           (10,211)	-8.81%
Non-current liabilities
term debt	$            91,807	$            93,735	$             (1,928)	-2.06%
other non-current liabilities	$            50,503	$            48,914	$               1,589	3.25%
total non-current liabilities	$        1,42,310	$        1,42,649	$                 (339)	-0.24%
total liabilities	$        2,48,028	$        2,58,578	$           (10,550)	-4.08%
commitments and contingencies
shareholder's equity
Common stock and additional paid-in capital, $ 0.00001 Par value: 12600,000 share authorized 4,443,236 and 4,754,986 share issued and outstanding, respectively	$            45,174	$            40,201	$               4,973	12.37%
Retained earnings	$            45,898	$            70,400	$           (24,502)	-34.80%
accumulated and other comprehensive income/(loss)	$               (584)	$            (3,454)	$               2,870	-83.09%
Total shareholder's equity	$            90,488	$        1,07,147	$           (16,659)	-15.55%
Total liabilities and shareholder's equity	$        3,38,516	$        3,65,725	$           (27,209)	-7.44%

Comments: total current assets have increased by 23.9% but overall total assets have decreased by 7.44%, total liabilities have decreased by 4.08% that shareholder’s equity has decreased by 15.55%

Requirement 2:

Apple inc
Horizontal analysis balance sheets
	2018	2017	$ change	% change
Assets:
Current Assets:
Cash and cash equivalents	$            25,913	$            20,289	$               5,624	27.72%
Marketable securities, net	$            40,388	$            53,892	$           (13,504)	-25.06%
Accounts receivables, net	$            23,186	$            17,874	$               5,312	29.72%
Inventories	$              3,956	$              4,855	$                 (899)	-18.52%
vendor non-trader receivables	$            25,809	$            17,799	$               8,010	45.00%
other current assets	$            12,087	$            13,936	$             (1,849)	-13.27%
total current assets	$        1,31,339	$        1,28,645	$               2,694	2.09%
Non-current assets			$                      -
Marketable securities	$        1,70,799	$        1,94,714	$           (23,915)	-12.28%
property, plant and equipment, net	$            41,304	$            33,783	$         1,37,016	405.58%
other non-current assets	$            22,283	$            18,177	$             23,127	127.23%
total non-current assets	$        2,34,386	$        2,46,674	$       (2,24,391)	-90.97%
total assets	$        3,65,725	$        3,75,319	$             (9,594)	-2.56%
Liabilities and shareholders' equity:
Current liabilities
Accounts payable	$            55,888	$            44,242	$             11,646	26.32%
other current liabilities	$            32,687	$            30,551	$               2,136	6.99%
Deferred revenue	$              7,543	$              7,548	$                     (5)	-0.07%
commercial paper	$            11,964	$            11,977	$                   (13)	-0.11%
term debt	$              8,784	$              6,496	$               2,288	35.22%
total current liabilities	$        1,16,866	$        1,00,814	$             16,052	15.92%
Non-current liabilities
Deffered revenue	$              2,797	$              2,836
term debt	$            93,735	$            97,207	$             (3,472)	-3.57%
other non-current liabilities	$            45,180	$            40,415	$               4,765	11.79%
total non-current liabilities	$        1,41,712	$        1,40,458	$               1,254	0.89%
total liabilities	$        2,58,578	$        2,41,272	$             17,306	7.17%
commitments and contingencies
shareholder's equity
Common stock and additional paid-in capital, $ 0.00001 Par value: 12600,000 share authorized 4,443,236 and 4,754,986 share issued and outstanding, respectively	$            40,201	$            35,867	$               4,334	12.08%
Retained earnings	$            70,400	$            98,330	$           (27,930)	-28.40%
accumulated and other comprehensive income/(loss)	$            (3,454)	$               (150)	$             (3,304)	2202.67%
Total shareholder's equity	$        1,07,147	$        1,34,047	$           (26,900)	-20.07%
Total liabilities and shareholder's equity	$        3,65,725	$        3,75,319	$             (9,594)	-2.56%

End of answer.

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