Assignment 2: Submission—Course Project - AU ACC201

Running head: FINANCIAL STATEMENTS 1

FINANCIAL STATEMENTS 5

Financial Statements of Publicly Traded Companies

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Financial Statements of Publicly Traded Companies

The three publicly traded companies that will be analyzed are Amazon Inc, Google Company and Apple Inc. The companies will be summarized and analyzed based on the four financial statements; statement of retained earnings, income statement, and cash flows statement, and balance sheet. These financial statements will assist in giving the overview of the condition of a business in terms of finances.

Amazon Inc.

It is an online retailer that provides a number of services and products to enterprises, sellers, and consumers. Headquartered in Seattle Washington, the company was founded in 1994 by Jeffrey Bezos. The company manufactures and sells electronics such as Fire tablets and fire televisions (reuters.com, n.d). It also offers services like publishing, database offerings, and advertising among others. The company operates through three segments; Amazon Web services, International, and North America. The Amazon Web services segment offers a number of services including storage and database to government agencies, institutions, and enterprises. The international segment offers retail services of consumer products through its international websites such as www.amazon.cn and www.amazon.it. The North America segment offers retail sales of consumer products through its websites such as www.amazon.ca and www.amazon.com (Amazon.com, 2017).

Google Company

It is a technology company that builds products and provides services that assist in organizing information. Headquartered in Mountain View, California, the company continues to provide its users with the ability to search. Through its Google search platform, the company provides information online, AdSense platform enables Goggle network websites to deliver advertisements, and Google Now platform offers users with information. The company also provides You Tube services that offer advertisements and videos, Google Play a digital entertainment that stores music, movies, and apps, hardware products like Nexus devices and Chrome OS devices, and Android a mobile software platform among others. Additionally, the company provides Google Maps Application that assists users in finding location and Google Apps such as Calendar and Gmail among others (bloomberg.com, 2018).

Apple Inc

The company designs, manufactures, markets, and sells a number of products including personal computers and mobile communication devices to government agencies, businesses, consumers, and institutions. Headquartered in Cupertino, California, Apple was founded in 1977. Some of its products are Apple Watch, iPad, and iPhone and software are iLife. It also sells a range of networking solutions, accessories, software and digital content and applications. It sells its products through online stores, retail stores, and direct sales. It operates in the following segments; Europe, America, Japan, Asia Pacific, and Greater China. It has Apple Pay that enables users to make purchases with contactless payments (Apple Inc, 2018).

Financial Statements

The income statement the most significant financial statement illustrates the expenses, revenues, and profits of Apple, Amazon, and Google. The three companies have earned profits the period ending 2017, Apple earned net income of $48,351,000, Google earned $12,662,000, and Amazon earned $3,033,000. This is a clear indication that Apple made the most profit compared to Amazon and Google. The balance sheet presents the company’s assets, liabilities, and equity illustrating the condition of the company. Apple has total assets of $375,319,000 and total liabilities of $241,272,000 meaning that the company owns a lot and spends a lot (Apple Inc. (AAPL), 2018). Google has total assets of $197,295,000 and total liabilities of $44,793,000 meaning that the company owns a lot but has managed less spending that could make it more profitable over time (Alphabet Inc. (GOOG), 2018). Amazon has total assets of $131,310,000 and total liabilities of $103,601,000 meaning that it owes much but like Apple spends a lot too (Amazon.com, Inc. (AMZN.SN), 2018).

Cash flow statements illustrate cash generated and used by a company during a given time. It is divided into cash flows financing, investing, and operating activities to illustrate where most cash is coming from. Apple and Google have most of their revenues generated from operating activities. However, Amazon has most of its revenue generated from investing activities. The statement of retained earnings illustrates earning kept to accumulate under owners’ equity after profits have been divided between dividends for shareholders. It appears in the Balance sheet. Amazon’s retained earnings period ending 2017 are $8,636,000, Apple’s retained earnings as of 2017 are $98,330,000 and Goggle’s retained earning as of 2017 are $113,247 ((Amazon.com, Inc. (AMZN.SN), 2018), (Apple Inc. (AAPL), 2018), and (Alphabet Inc. (GOOG), 2018)).

From the financial statement of these three companies, the three companies are stable when it comes to finances. However, I would invest in Apple that seems most appealing in terms of profits.

References Alphabet Inc. (GOOG). (2018). Retrieved from Yahoo Finance: https://finance.yahoo.com/quote/GOOG/balance-sheet?p=GOOG Amazon.com. (2017). Retrieved from Forbes: https://www.forbes.com/companies/amazon/ Amazon.com, Inc. (AMZN.SN). (2018). Retrieved from Yahoo Finance: https://finance.yahoo.com/quote/AMZN.SN/balance-sheet?p=AMZN.SN Amazon.com Inc (AMZN.O). (n.d). Retrieved from Reuters: https://www.reuters.com/finance/stocks/company-profile/AMZN.O Apple Inc. (2018). Retrieved from Reuters: https://www.reuters.com/finance/stocks/company- profile/AAPL.O Apple Inc. (AAPL). (2018). Retrieved from Yahoo Finance: https://finance.yahoo.com/quote/AAPL/financials?p=AAPL Company Overview of Google LLC. (2018). Retrieved from Bloomberg: https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=312932093