TACC303 Financial Statements Analysis.


Individual Assignment
Unit: TACC303 Financial Statements Analysis.

To get your Assignment/Homework solutions;

Simply Click ORDER NOW and fill your paper details. Our support team will review the assignment(s) and assign the right expert whose specialization is same to yours to complete it within your deadline. Our Editor(s) will then review the completed paper (to ensure that it is answered accordingly) before we email you a complete paper

Due Date: 5pm Friday, 11 May
Total Marks: 60 marks (15%)
Number of Questions: 1 Part
Instructions: All questions should be attempted.
The marks of each question would be awarded based on your understanding of the questions, concepts and procedures; hence you should demonstrate your answers step by step.
PLEASE READ THIS DOCUMENT CAREFULLY BEFORE YOU BEGIN, SO YOU DO NOT LOSE MARKS.
INSTRUCTIONS TO FOLLOW:
• Any list of the references actually cited must be included in your assignment paper.
• Font type should be Times New Roman (size 12), paragraph spacing should be equal to 1.5.
Marks:
The assignment is worth 15% of the total mark for the unit. The marks awarded will depend on the quality of the reasoning exhibited and the ability to express the argument in a concise manner.
Due date:
The assignment must be submitted on or before 5pm Friday, 11 May 2018. Late assignments will be accepted up to 72 hours after the submission deadline. There will be a deduction of 20% of the total available marks made from the total awarded mark for each 24 hour period or part thereof that the submission is late (for example, 25 hours late means a 40% penalty).
HOW TO SUBMIT YOUR ASSIGNMENT
No hard copy is required
You MUST submit an electronic copy through TURNITIN on Moodle for checking plagiarism. Failure to submit it may result in a zero mark for the entire assessment.
Part A (60 marks)
A Bite of the Apple: Apple Inc.
Apple Inc., under the leadership of Steve Jobs, has been a huge success over the past few years, with new products such as iPhone and iPad received enthusiastically by consumers.
The firm’s stock price increased from $91 at the beginning of 2009 to $350 by mid-year 2011. The income statement and balance sheet for the first quarter of 2011 are shown below. (Assume that, the firm has a statutory tax rate of 37 percent).
a) Reformulate the statements for the 2011 fiscal quarter in a way that shows how Apple adds value through its business. The long-term marketable securities are debt securities. “Other income and expenses” on the income statement is largely income on financial assets. (30 marks)
b) You will observe that Apple holds a large amount of “cash” on its balance sheet, invested largely in government and corporate bonds and commercial paper. it earned an average of only 0.75 percent (on an annual basis, before tax) on this cash during the quarter. With the free cash flow for the full fiscal year ending September 2011 projected to be $14.6 billion, the figure could become much higher. Apple pays no dividends. What could be Apple’s thinking in holding so much cash? (10 marks)
c) Why does Apple have no financing debt? (5 marks)
d) You will notice in your reformulation that Apple has negative net operating assets. What do you infer from this? Calculate residual income from operations for the quarter (using a rough guess of the required return) to provide some insights. (15 marks)
APPLE, INC,
Condensed Consolidated Statements of Operations (Unaudited)
(in millions, except share amounts which are reflected in thousands and per share amounts)
Three Months Ended
Six Months Ended
March 26
2011
March 27
2010
March 26
2011
March 27
2010
Net sales
$24,667
$13,499
$51,408
$29,182
Cost of sales
14,449
7,874
30,892
17,146
Gross margin
10,218
5,625
20,516
12,036
Operating expenses:
Research and development
581
426
1,156
824
Selling, general and administrative
1,763
1,220
3,659
2,508
Total operating expenses
2,344
1,646
4,815
3,332
Operating income
7,874
3,979
15,701
8,704
Other income and expense
26
50
162
83
Income before provision for income taxes
7,900
4,029
15,863
8,787
Provision for income taxes
1,913
955
3,872
2,335
Net income
$ 5,987
$3,074
$11,991
$ 6,452
Earnings per common share:
Basic
$ 6.49
$ 3.39
$ 13.02
$ 7.12
Diluted
$ 6.40
$ 3.33
$ 12.83
$ 7.00
Shares used in computing earnings per share:
Basic
923,196
907,548
921,245
905,545
Diluted
935,944
922,878
934,549
921,331
APPLE, INC.
Condensed Consolidated Balance Sheets (Unaudited)
(in millions except share amounts)
March 26, 2011
September 25, 2010
Assets
Current assets:
Cash and cash equivalents
$15,978
$11,261
Short-term marketable securities
13,256
14,359
Accounts receivable, less allowances of $57 and $55, respectively
5,798
5,510
Inventories
930
1,051
Deferred tax assets
1,683
1,636
Vendor non-trade receivables
5,297
4,414
Other current assets
4,055
3,447
Total current assets
46,997
41,678
Long-term marketable securities
36,533
25,391
Property, plant and equipment, net
6,241
4,768
Goodwill
741
741
Acquired intangible assets, net
507
342
Other assets
3,885
2,263
Total assets
$ 94,904
$ 75,183
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable
$ 13,714
$ 12,015
Accrued expenses
7,022
5,723
Deferred revenue
3,591
2,984
Total current liabilities
24,327
20,722
Deferred revenue-noncurrent
1,230
1,139
Other noncurrent liabilities
7,870
5,531
Total liabilities
33,427
27,392
Commitments and contingencies
Shareholders’ equity
Common stock, no par value; 1,800,000,000 shares authorized; 924,674,079 and 915,970,050 shares issued and outstanding, respectively
12,326
10,668
Retained earnings
49,025
37,169
Accumulated other comprehensive income (loss)
126
(46)
Total shareholders’ equity
61,477
47,791
Total liabilities and shareholders’ equity
$ 94,904
$ 83
END OF THE ASSIGNMENT.

To get your Assignment/Homework solutions;

Simply Click ORDER NOW and fill your paper details. Our support team will review the assignment(s) and assign the right expert whose specialization is same to yours to complete it within your deadline. Our Editor(s) will then review the completed paper (to ensure that it is answered accordingly) before we email you a complete paper

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: