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Colten Reed
October 29 2023
Analysis 5
Analysis
Introduction
In this assignment I was ordered to look over the Balance Sheet for both Apple and Microsoft from the year 2019. We collected the data from the areas Cash, Accounts
Receivable, Inventory, Current Assets, and Current Liabilities. In the other section we calculated the Working Capital, Current Ratio, and Quick Ratio. The results were pretty surprising and they included very high numbers in the 100 millions. Comparison
After finding the results of each of these companies I found that Apple held 48,844 in cash while Microsoft only had 11,356 in cash. It is important to note that these
numbers represent millions. Apple had 162,819 in Current Assets and held 105,718 in Current Liabilities. I was surprised to see that Microsoft had 175,552 in Current Assets while only having 69,420 in Current Liabilities and still having less cash than Apple. Working Capital
Working Capital is your Current assets subtracted by your Current Liabilities. Microsoft's Working Capital would be 175,552 - 69,420 which equals 106,132. Apple's Working Capital was 162,819 - 105,718 which equals 57,101. From the results you can see Microsoft had much more money in their Working Capital than Apple did. Current Ratio
The Current Ratio is your Current Assets divided by your Current Liabilities. Apple's Current Ratio would be 162,819 divided by 105,718 which equals to 1.54. Microsoft has a current ratio of 2.53 and they would divide 175,552 by 69,420 to get that
calculation. Microsoft's Current Ratio is much better than Apples. Quick Ratio
The Quick Ratio is your Quick Assets divided by your Current Liabilities. Microsoft would calculate 175,552 - 2,063.00 divided by 69,420 to get a ratio of 2.50. Apple would take 162,819 - 4,106 and divide it by 105,718 to get the ratio of 1.50. This seems to by the Current Ratio rounded down to the nearest thousandth. Conclusion
Overall this assignment taught me new equations to get answers from the Balance Sheets. Though Apple has more cash Microsoft held much more assets and had substantially less liabilities than Apple. I learned how to find Working Capital and Current and Quick Ratios which are great to understand because they are important parts of the Balance Sheet.
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Related Questions
Calculate the average life, average age, and asset turnover ratios for Exxon Mobil. Discuss what each ratio tells you in the context of your chosen company. Calculate the accounts receivable turnover ratio and convert that ratio into days. Discuss what each ratio tells you in the context of your chosen company.
Assets
Fiscal year is January-December. All values USD millions.
2018
2019
Cash & Short Term Investments
3.04B
3.09B
Cash Only
3.04B
3.09B
Short-Term Investments
-
-
Total Accounts Receivable
24.7B
26.97B
Accounts Receivables, Net
19.64B
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Accounts Receivables, Gross
20.04B
21.51B
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Inventories
18.96B
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Finished Goods
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14.01B
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Raw Materials
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Progress Payments & Other
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1.47B…
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1. Danka Corporation collected a $200,000 accounts receivable. What impact will this transaction
have on working capital? (Hint: Think of the horizontal equation entry for the collection of
accounts receivable and what accounts that will impact)
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Create a new sheet named vertical analysis in the Excel workbook and insert the
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the income statement and balance sheet.
STATEMENT OF INCOME 2020-12-31
2019-12-31
2018-12-31
2017-12-31
Create a new sheet named horizontal analysis in the Excel workbook and insert the
necessary equations or functions in related cells to calculate horizontal analysis for
Sales
768,109,000 1,105,696,000 1,194,376,000 835,983,000
the income statement and balance sheet.
Sales Cost
BALANCE SHEET
12/31/2020
12/31/2019
12/31/2018
12/31/2017
Total Income
768,109,000 1,105,696,000 1,194,376,000 835,983,000
Current Assets
340,079,000
320,122,000
339,609,000
213,006,000
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93,982,000 131,089,000
152,641,000
150,176,000
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51,999,000
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85,161,000
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2020
2019
2018
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4190518
3574704
3,052,269
Time Deposits
828220
1126352
901244
Marketable securities
678731
1127160
1768360
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2372734
2219562
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6614171
6647771
6438306
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568156
489338
Inventories
2434918
2656396
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1236225
805964
833788
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18879237
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2021
2020
2021
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200,400
301,540
230,876
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199,990
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1,187,211
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264,023
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2020
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163,033
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114,123
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40,758
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36,099
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67,663
84,741
Inventory
60,555
55,456
Cash
50,444
67,333
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405.815
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119,673
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260,081
Total Equity
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145.734
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For the Year Ended
Revenue
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3/31/2022
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$ 343,050.56
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$ 74,082.69
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31,400
30,800
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