Analysis5

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Central Washington University *

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Accounting

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Jul 2, 2024

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docx

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Uploaded by DukeGiraffePerson709

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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