Running Head: FINANCE 100 Finance 100 Student’s Name Institution of Affiliation Date FINANCE 100 Finance 100 Apple Company 2 FINANCE 100 Cash and Equivalents 14.26 B 13.84 B Receivables 20.64 B 27.22 B Inventories 1.76 B 2.11 B Other Current Assets 6.88 B 9.81 B Total Current Assets 73.29 B 68.53 B The chart showcasing 2014 & 2015. As from the tables, the company exceeded the exceptions on a given share, even though it missed on revenue. As such, it shows that Apple is a good investment for the long run. Anyone willing to have their resources and finances invested in the company would be highly recommended to do so. However, from the stats it shows that the stock has dropped more than 5 points in the past year. Accounts Payable 22.37 B 30.20 B Short Term Debt -- 6.31 B Current Deferred Revenue 7.44 B 9.55 B Other Current Liabilities 8.64 B 9.71 B Total Current Liabilities 43.66 B 63.45 B 3 FINANCE 100 The table shows that the company exceeded the expectations on earnings per share, though it missed on the revenue This is one of the biggest drop of the past four years for Apple shares. Apple continues to face intense margin pressure, particularly as the iPhones and iPads continue to lose in revenues per unit. Without the release of some mind blowing bombshell new products, it will be difficult for Apple to continue sails. Preferred Stock Equity -- -- Common Stock Equity 123.55 B 111.55 B Additional Paid in Capital 19.76 B -- Retained Earnings 104.26 B 87.15 B Treasury Stock Other Equity Adjustments -(471.00 M) 1.08 B 123.55 B 111.55 B TOTAL EQUITY Income Statement 2013 2014 Revenue 170.91 B 182.80 B Cost of Goods Sold 99.85 B 104.31 B 4 FINANCE 100 2013 2014 Gross Profit 71.06 B 78.48 B TOTAL NET INCOME 37.04 B 39.51 B Apples income statement can be explained in these 3 statements. They outgrew their supply chain. Apple has grown so large that it's been eliminating its own production capacity. The competitors are copying its operational model with success. When you look at Microsoft, which has taken a page right out of Apple's own book and has been opening stores in high volume malls around the U.S. with high success, the expectations of investors are flawed or unrealistic. Apple's devices have changed the way we operate, but we falsely assume that it is and will be the only innovating company to existence. 5 ...
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