Financial Statement Development and Analysis - ACT 10

profileskomel
apple_solutions.xls
Home>Business & Finance homework help>Financial Statement Development and Analysis - ACT 10

Supplement I

Apple Computer, Inc.
Income Statement
(in millions of dollars)
2002 2001 2000 1999 1998
Net sales $ 5,742 $5,363 $ 7,983 $ 6,134 $ 5,941
Cost of sales 4,139 4,128 5,817 4,438 4,462
Gross margin 1,603 1,235 2,166 1,696 1,479
Operating expenses:
Research and development 446 430 380 314 303
Selling, general and administration 1,111 1,138 1,166 996 908
Executive bonus (2) - 0 90
Restructuring costs 30 - 0 8 27 -
In-process research and development 1 11 - 0 - 0 7
Total operating expenses 1,586 1,579 1,644 1,337 1,218
Operating income 17 (344) 522 359 261
Other income and (expenses) 70 304 570 317 68
Income (loss) before taxes 87 (40) 1,092 676 329
Provision (benefit) for taxes 22 (15) 306 75 20
Net income (loss) $ 65 $ (25) $ 786 $ 601 $ 309
Basic EPS $ 0.18 ($0.07) $ 2.42 $ 2.10 $2.34
Diluted EPS $ 0.18 ($0.07) $ 2.18 $ 1.81 $2.10
Table A: Apple Income Statement
Apple Computer, Inc.
Balance Sheet
(in millions of dollars)
Assets 2002 2001 2000 1999 1998
Current Assets
Cash and equivalents $ 2,252 $ 2,310 $ 1,191 $ 1,326 $ 1,481
Short-term investments 2,085 2,026 2,836 1,900 819
Accounts receivable, net 565 466 953 681 955
Inventories 45 11 33 20 78
Deferred tax assets 166 169 162 143
Other current assets 275 161 252 215 365
Total current assets 5,388 5,143 5,427 4,285 3,698
Property, plant & equipment, net 621 564 313 318 348
Non-current investments 39 128 786 339
Other assets 250 186 277 219 243
Total assets $ 6,298 $6,021 $ 6,803 $ 5,161 $ 4,289
Liabilities
Current Liabilities
Notes payable $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Accounts payable 911 801 1,157 812 719
Accrued expenses 747 717 776 737 801
Total current liabilities 1,658 1,518 1,933 1,549 1,520
Long-term debt 316 317 300 300 954
Deferred tax liabilities 229 266 463 208 173
Total liabilities 2,203 2,101 2,696 2,057 $ 2,647
Shareholders' Equity
Preferred stock - 0 0 76 150 150
Common stock 1,826 1,693 1,502 1,349 633
Retained earnings 2,325 2,260 2,285 1,499 898
Other equity (56) -33 244 106 (39)
Total shareholders' equity 4,095 3,920 4,107 3,104 1,642
Total liabilities and S/E $ 6,298 $6,021 $ 6,803 $ 5,161 $ 4,289
Table B: Apple Balance Sheet
Apple Computer, Inc.
Statements of Cash Flows
(in millions of dollars)
2002 2001 2000 1999 1998
Operating Activities
Net income (loss) $ 65 ($25) $ 786 $ 601 $ 309
Depreciation and amortization expense 118 102 84 85 111
Deferred income taxes (34) (36) 163 (35) 1
IPRD and gains from equity sales 42 (88) (364) (230) 7
Change in accounts receivable (99) 487 (272) 274 72
Change in inventory (34) 22 (13) 58 359
Change in accounts payable 110 (356) 345 93 34
Restructuring costs - 0 (27) 2 (107)
Other (79) 79 124 (50) (11)
Cash generated by operating act. $ 89 $185 $ 826 $ 798 $ 775
Investing Activities
Purchase of short-term investments $ (4,144) ($4,268) $ (4,267) $ (4,236) $ (2,313)
Proceeds from sale of S-T investments 4,100 5,089 3,331 3,155 1,723
Proceeds from sale of P,P&E - 0 - 0 11 23 89
Purchase of P,P&E (174) (232) (107) (47) (46)
Acquisition of technology - 0 (10)
Proceeds from sale of equity invest. 25 340 372 245 24
Other (59) (37) (270) (104) (10)
Cash used for investing activities $ (252) $892 $ (930) $ (964) $ (543)
Financing Activities
Notes payable to bank $ - 0 - 0 - 0 - 0 $ (25)
Long-term borrowings - 0 - 0 - 0 - 0 3
Proceeds from issuance of pref. stock - 0 - 0 - 0 - 0
Increase in common stock, net 105 42 (31.00) 11.00 41
Dividends - 0 - 0 - 0 - 0
Cash generated by financing act. $ 105 $42 $ (31) $ 11 $ 19
Total cash generated (used) $ (58) $1,119 $ (135) $ (155) $ 251
Cash and cash equiv., beginning of year $ 2,310 $1,191 $ 1,326 $ 1,481 $ 1,230
Cash and cash equivalents, end of year $ 2,252 $2,310 $ 1,191 $ 1,326 $ 1,481
Table C: Apple Statement of Cash Flows

Income Statements

Apple Computer, Inc.
Income Statement
(in millions of dollars)
2002 2001 2000 1999 1998
Net sales $ 5,742 $5,363 $ 7,983 $ 6,134 $ 5,941
Cost of sales 4,139 4,128 5,817 4,438 4,462
Gross margin 1,603 1,235 2,166 1,696 1,479
Operating expenses:
Research and development 446 430 380 314 303
Selling, general and administration 1,111 1,138 1,166 996 908
Executive bonus (2) - 0 90
Restructuring costs 30 - 0 8 27 -
In-process research and development 1 11 - 0 - 0 7
Total operating expenses 1,586 1,579 1,644 1,337 1,218
Operating income 17 (344) 522 359 261
Other income and (expenses) 70 304 570 317 68
Income (loss) before taxes 87 (40) 1,092 676 329
Provision (benefit) for taxes 22 (15) 306 75 20
Net income (loss) $ 65 $ (25) $ 786 $ 601 $ 309
Basic EPS $ 0.18 ($0.07) $ 2.42 $ 2.10 $2.34
Diluted EPS $ 0.18 ($0.07) $ 2.18 $ 1.81 $2.10
Part B
Apple Computer, Inc.
Income Statement
Vertical Common Size
(in millions of dollars)
2002 2001 2000 1999 1998
Sales Revenue $ 5,742 100.00% $5,363 100.00% $ 7,983 100.00% $ 6,134 100.00% $ 5,941 100.00%
Cost of goods sold 4,139 72.08% 4,128 76.97% 5,817 72.87% 4,438 72.35% 4,462 75.11%
Gross profit 1,603 27.92% 1,235 23.03% 2,166 27.13% 1,696 27.65% 1,479 24.89%
Expenses:
Research and development 446 7.77% 430 8.02% 380 4.76% 314 5.12% 303 5.10%
Selling, general and administration 1,111 19.35% 1,138 21.22% 1,166 14.61% 996 16.24% 908 15.28%
Executive bonus (2) -0.03% - 0 0.00% 90 1.13% - 0 0.00% - 0 0.00%
Restructuring costs 30 0.52% - 0 0.00% 8 0.10% 27 0.44% - 0 0.00%
In-process research and development 1 0.02% 11 0.21% - 0 0.00% - 0 0.00% 7 0.12%
Total operating expenses 1,586 27.62% 1,579 29.44% 1,644 20.59% 1,337 21.80% 1,218 20.50%
Operating income 17 0.30% (344) -6.41% 522 6.54% 359 5.85% 261 4.39%
Other income and (expenses) 70 1.22% 304 5.67% 570 7.14% 317 5.17% 68 1.14%
Income (loss) before taxes 87 1.52% (40) -0.75% 1,092 13.68% 676 11.02% 329 5.54%
Provision (benefit) for taxes 22 0.38% (15) -0.28% 306 3.83% 75 1.22% 20 0.34%
Net income (loss) $ 65 1.13% $ (25) -0.47% $ 786 9.85% $ 601 9.80% $ 309 5.20%
Basic EPS $ 0.18 ($0.07) $ 2.42 $ 2.10 $2.34
Diluted EPS $ 0.18 ($0.07) $ 2.18 $ 1.81 $2.10
Part C
Apple Computer, Inc.
Income Statement
Horizontally Common Size
(in millions of dollars)
2002 2001 2000 1999 1998
Net sales $ 5,742 107.07% $5,363 67.18% $ 7,983 130.14% $ 6,134 103.25% $ 5,941 100.00%
Cost of sales 4,139 100.27% 4,128 70.96% 5,817 131.07% 4,438 99.46% 4,462 100.00%
Gross margin 1,603 129.80% 1,235 57.02% 2,166 127.71% 1,696 114.67% 1,479 100.00%
Operating expenses:
Research and development 446 103.72% 430 113.16% 380 121.02% 314 103.63% 303 100.00%
Selling, general and administration 1,111 97.63% 1,138 97.60% 1,166 117.07% 996 109.69% 908 100.00%
Executive bonus (2) 0.00% - 0 0.00% 90 0.00% - 0 0.00% - 100.00%
Restructuring costs 30 0.00% - 0 0.00% 8 29.63% 27 0.00% - 100.00%
In-process research and development 1 9.09% 11 0.00% - 0 0.00% - 0 0.00% 7 100.00%
Total operating expenses 1,586 100.44% 1,579 96.05% 1,644 122.96% 1,337 109.77% 1,218 100.00%
Operating income 17 -4.94% (344) -65.90% 522 145.40% 359 137.55% 261 100.00%
Other income and (expenses) 70 23.03% 304 53.33% 570 179.81% 317 466.18% 68 100.00%
Income (loss) before taxes 87 -217.50% (40) -3.66% 1,092 161.54% 676 205.47% 329 100.00%
Provision (benefit) for taxes 22 -146.67% (15) -4.90% 306 408.00% 75 375.00% 20 100.00%
Net income (loss) $ 65 -260.00% $ (25) -3.18% $ 786 130.78% $ 601 194.50% $ 309 100.00%
Basic EPS $ 0.18 ($0.07) $ 2.42 $ 2.10 $2.34
Diluted EPS $ 0.18 ($0.07) $ 2.18 $ 1.81 $2.10
Part D
Apple Computer, Inc.
Compound Annual Growth Rate
(in millions of dollars)
2002 2001 2000 1999 1998 Growth
Net sales $ 5,742 $5,363 $ 7,983 $ 6,134 $ 5,941 -1%
Cost of sales 4,139 4,128 5,817 4,438 4,462 -2%
Gross margin 1,603 1,235 2,166 1,696 1,479 2%
Operating expenses:
Research and development 446 430 380 314 303 10%
Selling, general and administration 1,111 1,138 1,166 996 908 5%
Executive bonus (2) - 0 90 -
Restructuring costs 30 - 0 8 27 -
In-process research and development 1 11 - 0 - 0 7 -39%
Total operating expenses 1,586 1,579 1,644 1,337 1,218 7%
Operating income 17 (344) 522 359 261 -49%
Other income and (expenses) 70 304 570 317 68 1%
Income (loss) before taxes 87 (40) 1,092 676 329 -28%
Provision (benefit) for taxes 22 (15) 306 75 20 2%
Net income (loss) $ 65 $ (25) $ 786 $ 601 $ 309 -32%

Balance Sheets

Apple Computer, Inc.
Balance Sheet
(in millions of dollars)
Assets 2002 2001 2000 1999 1998
Current Assets
Cash and equivalents $ 2,252 $ 2,310 $ 1,191 $ 1,326 $ 1,481
Short-term investments 2,085 2,026 2,836 1,900 819
Accounts receivable, net 565 466 953 681 955
Inventories 45 11 33 20 78
Deferred tax assets 166 169 162 143
Other current assets 275 161 252 215 365
Total current assets 5,388 5,143 5,427 4,285 3,698
Property, plant & equipment, net 621 564 313 318 348
Non-current investments 39 128 786 339
Other assets 250 186 277 219 243
Total assets $ 6,298 $6,021 $ 6,803 $ 5,161 $ 4,289
Liabilities
Current Liabilities
Notes payable $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Accounts payable 911 801 1,157 812 719
Accrued expenses 747 717 776 737 801
Total current liabilities 1,658 1,518 1,933 1,549 1,520
Long-term debt 316 317 300 300 954
Deferred tax liabilities 229 266 463 208 173
Total liabilities 2,203 2,101 2,696 2,057 $ 2,647
Shareholders' Equity
Preferred stock - 0 0 76 150 150
Common stock 1,826 1,693 1,502 1,349 633
Retained earnings 2,325 2,260 2,285 1,499 898
Other equity (56) -33 244 106 (39)
Total shareholders' equity 4,095 3,920 4,107 3,104 1,642
Total liabilities and S/E $ 6,298 $6,021 $ 6,803 $ 5,161 $ 4,289
Part B
Apple Computer, Inc.
Balance Sheet
Vertical Common Size
(in millions of dollars)
Assets 2002 2001 2000 1999 1998
Current Assets
Cash and equivalents $ 2,252 35.76% $ 2,310 38.37% $ 1,191 17.51% $ 1,326 25.69% $ 1,481 34.53%
Short-term investments 2,085 33.11% 2,026 33.65% 2,836 41.69% 1,900 36.81% 819 19.10%
Accounts receivable, net 565 8.97% 466 7.74% 953 14.01% 681 13.20% 955 22.27%
Inventories 45 0.71% 11 0.18% 33 0.49% 20 0.39% 78 1.82%
Deferred tax assets 166 2.64% 169 2.81% 162 2.38% 143 2.77% - 0 0.00%
Other current assets 275 4.37% 161 2.67% 252 3.70% 215 4.17% 365 8.51%
Total current assets 5,388 85.55% 5,143 85.42% 5,427 79.77% 4,285 83.03% 3,698 86.22%
Property, plant & equipment, net 621 9.86% 564 9.37% 313 4.60% 318 6.16% 348 8.11%
Non-current investments 39 0.62% 128 2.13% 786 11.55% 339 6.57% - 0 0.00%
Other assets 250 3.97% 186 3.09% 277 4.07% 219 4.24% 243 5.67%
Total assets $ 6,298 100.00% $6,021 100.00% $ 6,803 100.00% $ 5,161 100.00% $ 4,289 100.00%
Liabilities
Current Liabilities
Notes payable $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Accounts payable 911 14.46% 801 13.30% 1,157 17.01% 812 15.73% 719 27.16%
Accrued expenses 747 11.86% 717 11.91% 776 11.41% 737 14.28% 801 30.26%
Total current liabilities 1,658 26.33% 1,518 25.21% 1,933 28.41% 1,549 30.01% 1,520 57.42%
Long-term debt 316 5.02% 317 5.26% 300 4.41% 300 5.81% 954 36.04%
Deferred tax liabilities 229 3.64% 266 4.42% 463 6.81% 208 4.03% 173 6.54%
Total liabilities 2,203 34.98% 2,101 34.89% 2,696 39.63% 2,057 39.86% $ 2,647 100.00%
Shareholders' Equity
Preferred stock - 0 0.00% 0 0.00% 76 1.12% 150 2.91% 150 3.50%
Common stock 1,826 28.99% 1,693 28.12% 1,502 22.08% 1,349 26.14% 633 14.76%
Retained earnings 2,325 36.92% 2,260 37.54% 2,285 33.59% 1,499 29.04% 898 20.94%
Other equity (56) -0.89% -33 -0.55% 244 3.59% 106 2.05% (39) -0.91%
Total shareholders' equity 4,095 65.02% 3,920 65.11% 4,107 60.37% 3,104 60.14% 1,642 38.28%
Total liabilities and S/E $ 6,298 100.00% $6,021 100.00% $ 6,803 100.00% $ 5,161 100.00% $ 4,289 100.00%
Part C
Apple Computer, Inc.
Balance Sheet
Horizontal Common Size
(in millions of dollars)
Assets 2002 2001 2000 1999 1998
Current Assets
Cash and equivalents $ 2,252 97.49% $ 2,310 193.95% $ 1,191 89.82% $ 1,326 89.53% $ 1,481 100.00%
Short-term investments 2,085 102.91% 2,026 71.44% 2,836 149.26% 1,900 231.99% 819 100.00%
Accounts receivable, net 565 121.24% 466 48.90% 953 139.94% 681 71.31% 955 100.00%
Inventories 45 409.09% 11 33.33% 33 165.00% 20 25.64% 78 100.00%
Deferred tax assets 166 98.22% 169 104.32% 162 113.29% 143 0.00% - 0 100.00%
Other current assets 275 170.81% 161 63.89% 252 117.21% 215 58.90% 365 100.00%
Total current assets 5,388 104.76% 5,143 94.77% 5,427 126.65% 4,285 115.87% 3,698 100.00%
Property, plant & equipment, net 621 110.11% 564 180.19% 313 98.43% 318 91.38% 348 100.00%
Non-current investments 39 30.47% 128 16.28% 786 231.86% 339 0.00% - 0 100.00%
Other assets 250 134.41% 186 67.15% 277 126.48% 219 90.12% 243 100.00%
Total assets $ 6,298 104.60% $6,021 88.51% $ 6,803 131.82% $ 5,161 120.33% $ 4,289 100.00%
Liabilities
Current Liabilities
Notes payable $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Accounts payable 911 113.73% 801 69.23% 1,157 142.49% 812 112.93% 719 100.00%
Accrued expenses 747 104.18% 717 92.40% 776 105.29% 737 92.01% 801 100.00%
Total current liabilities 1,658 109.22% 1,518 78.53% 1,933 124.79% 1,549 101.91% 1,520 100.00%
Long-term debt 316 99.68% 317 105.67% 300 100.00% 300 31.45% 954 100.00%
Deferred tax liabilities 229 86.09% 266 57.45% 463 222.60% 208 120.23% 173 100.00%
Total liabilities 2,203 104.85% 2,101 77.93% 2,696 131.06% 2,057 77.71% $ 2,647 100.00%
Shareholders' Equity
Preferred stock - 0 0.00% 0 0.00% 76 50.67% 150 100.00% 150 100.00%
Common stock 1,826 107.86% 1,693 112.72% 1,502 111.34% 1,349 213.11% 633 100.00%
Retained earnings 2,325 102.88% 2,260 98.91% 2,285 152.43% 1,499 166.93% 898 100.00%
Other equity (56) 169.70% -33 -13.52% 244 230.19% 106 -271.79% (39) 100.00%
Total shareholders' equity 4,095 104.46% 3,920 95.45% 4,107 132.31% 3,104 189.04% 1,642 100.00%
Total liabilities and S/E $ 6,298 104.60% $6,021 88.51% $ 6,803 131.82% $ 5,161 120.33% $ 4,289 100.00%
Part D
Apple Computer, Inc.
Compound Annual Growth Rate
(in millions of dollars)
Assets 2002 2001 2000 1999 1998 Growth
Current Assets
Cash and equivalents $ 2,252 $ 2,310 $ 1,191 $ 1,326 $ 1,481 11%
Short-term investments 2,085 2,026 2,836 1,900 819 26%
Accounts receivable, net 565 466 953 681 955 -12%
Inventories 45 11 33 20 78 -13%
Deferred tax assets 166 169 162 143
Other current assets 275 161 252 215 365 -7%
Total current assets 5,388 5,143 5,427 4,285 3,698 10%
Property, plant & equipment, net 621 564 313 318 348 16%
Non-current investments 39 128 786 339 - 0
Other assets 250 186 277 219 243 1%
Total assets $ 6,298 $6,021 $ 6,803 $ 5,161 $ 4,289 10%
Liabilities
Current Liabilities
Notes payable $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Accounts payable 911 801 1,157 812 719 6%
Accrued expenses 747 717 776 737 801 -2%
Total current liabilities 1,658 1,518 1,933 1,549 1,520 2%
Long-term debt 316 317 300 300 954 -24%
Deferred tax liabilities 229 266 463 208 173 7%
Total liabilities 2,203 2,101 2,696 2,057 $ 2,647 -4%
Shareholders' Equity
Preferred stock - 0 0 76 150 150 -100%
Common stock 1,826 1,693 1,502 1,349 633 30%
Retained earnings 2,325 2,260 2,285 1,499 898 27%
Other equity (56) -33 244 106 (39) 9%
Total shareholders' equity 4,095 3,920 4,107 3,104 1,642 26%
Total liabilities and S/E $ 6,298 $6,021 $ 6,803 $ 5,161 $ 4,289 10%

Average BS

Apple Computer, Inc.
Balance Sheet
(in millions of dollars)
Assets 2002 2001 2000 1999 1998
Current Assets
Cash and equivalents $ 2,252 $ 2,310 $ 1,191 $ 1,326 $ 1,481
Short-term investments 2,085 2,026 2,836 1,900 819
Accounts receivable, net 565 466 953 681 955
Inventories 45 11 33 20 78
Deferred tax assets 166 169 162 143
Other current assets 275 161 252 215 365
Total current assets 5,388 5,143 5,427 4,285 3,698
Property, plant & equipment, net 621 564 313 318 348
Non-current investments 39 128 786 339
Other assets 250 186 277 219 243
Total assets $ 6,298 $6,021 $ 6,803 $ 5,161 $ 4,289
Liabilities
Current Liabilities
Notes payable $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Accounts payable 911 801 1,157 812 719
Accrued expenses 747 717 776 737 801
Total current liabilities 1,658 1,518 1,933 1,549 1,520
Long-term debt 316 317 300 300 954
Deferred tax liabilities 229 266 463 208 173
Total liabilities 2,203 2,101 2,696 2,057 $ 2,647
Shareholders' Equity
Preferred stock - 0 0 76 150 150
Common stock 1,826 1,693 1,502 1,349 633
Retained earnings 2,325 2,260 2,285 1,499 898
Other equity (56) -33 244 106 (39)
Total shareholders' equity 4,095 3,920 4,107 3,104 1,642
Total liabilities and S/E $ 6,298 $6,021 $ 6,803 $ 5,161 $ 4,289
Apple Computer, Inc.
Balance Sheet
(in millions of dollars)
2002 2001 2000 1999 1998
Current Assets
Cash and equivalents $ 2,281 $ 1,751 $ 1,259 $ 1,404 $ 1,481
Short-term investments 2,056 2,431 2,368 1,360 819
Accounts receivable, net 516 710 817 818 955
Inventories 49 27 22 28 78
Deferred tax assets 168 166 153 72
Other current assets 218 207 234 290 365
Total current assets 5,266 5,285 4,856 3,992 3,698
Property, plant & equipment, net 593 439 316 333 348
Non-current investments 84 457 563 170
Other assets 218 232 248 231 243
Total assets $ 6,160 $ 6,412 $ 5,982 $ 4,725 $ 4,289
Liabilities
Current Liabilities
Notes payable $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Accounts payable 856 979 985 766 719
Accrued expenses 732 747 757 769 801
Total current liabilities 1,588 1,726 1,741 1,535 1,520
Long-term debt 317 309 300 627 954
Deferred tax liabilities 248 365 336 191 173
Total liabilities 2,152 2,399 2,377 2,352 $ 2,647
Shareholders' Equity
Preferred stock - 0 38 113 150 150
Common stock 1,760 1,598 1,426 991 633
Retained earnings 2,293 2,273 1,892 1,199 898
Other equity (45) 106 175 34 (39)
Total shareholders' equity 4,008 4,014 3,606 2,373 1,642
Total liabilities and S/E $ 6,160 $ 6,412 $ 5,982 $ 4,725 $ 4,289

Ratios

Apple Computer, Inc.
Balance Sheet
(in millions of dollars)
Assets 1998 1999 2000 2001 2002
Current Assets
Cash and equivalents $ 1,481 $ 1,326 $ 1,191 $ 2,310 $ 2,252
Short-term investments 819 1,900 2,836 2,026 2,085
Accounts receivable, net 955 681 953 466 565
Inventories 78 20 33 11 45
Deferred tax assets 143 162 169 166
Other current assets 365 215 252 161 275
Total current assets 3,698 4,285 5,427 5,143 5,388
Property, plant & equipment, net 348 318 313 564 621
Non-current investments 339 786 128 39
Other assets 243 219 277 186 250
Total assets $ 4,289 $ 5,161 $ 6,803 $6,021 $ 6,298
Liabilities
Current Liabilities
Notes payable $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Accounts payable 719 812 1,157 801 911
Accrued expenses 801 737 776 717 747
Total current liabilities 1,520 1,549 1,933 1,518 1,658
Long-term debt 954 300 300 317 316
Deferred tax liabilities 173 208 463 266 229
Total liabilities $ 2,647 2,057 2,696 2,101 2,203
Shareholders' Equity
Preferred stock 150 150 76 0 - 0
Common stock 633 1,349 1,502 1,693 1,826
Retained earnings 898 1,499 2,285 2,260 2,325
Other equity (39) 106 244 -33 (56)
Total shareholders' equity 1,642 3,104 4,107 3,920 4,095
Total liabilities and S/E $ 4,289 $ 5,161 $ 6,803 $6,021 $ 6,298
Apple Computer, Inc.
Balance Sheet
(in millions of dollars)
Assets 1999 2000 2001 2002
Current Assets
Cash and equivalents $ 1,404 $ 1,259 $ 1,751 $ 2,281
Short-term investments $ 1,360 $ 2,368 $ 2,431 $ 2,056
Accounts receivable, net $ 818 $ 817 $ 710 $ 516
Inventories $ 49 $ 27 $ 22 $ 28
Deferred tax assets $ 72 $ 153 $ 166 $ 168
Other current assets $ 290 $ 234 $ 207 $ 218
Total current assets $ 3,992 $ 4,856 $ 5,285 $ 5,266
Property, plant & equipment, net $ 333 $ 316 $ 439 $ 593
Non-current investments $ 170 $ 563 $ 457 $ 84
Other assets $ 231 $ 248 $ 232 $ 218
Total assets $ 4,725 $ 5,982 $ 6,412 $ 6,160
Liabilities $ - 0 $ - 0 $ - 0 $ - 0
Current Liabilities $ - 0 $ - 0 $ - 0 $ - 0
Notes payable $ - 0 $ - 0 $ - 0 $ - 0
Accounts payable $ 766 $ 985 $ 979 $ 856
Accrued expenses $ 769 $ 757 $ 747 $ 732
Total current liabilities $ 1,535 $ 1,741 $ 1,726 $ 1,588
Long-term debt $ 627 $ 300 $ 309 $ 317
Deferred tax liabilities $ 191 $ 336 $ 365 $ 248
Total liabilities $ 2,352 $ 2,377 $ 2,399 $ 2,152
$ - 0 $ - 0 $ - 0 $ - 0
Shareholders' Equity $ - 0 $ - 0 $ - 0 $ - 0
Preferred stock $ 150 $ 113 $ 38 $ - 0
Common stock $ 991 $ 1,426 $ 1,598 $ 1,760
Retained earnings $ 1,199 $ 1,892 $ 2,273 $ 2,293
Other equity $ 34 $ 175 $ 106 $ (45)
Total shareholders' equity $ 2,373 $ 3,606 $ 4,014 $ 4,008
Total liabilities and S/E $ 4,725 $ 5,982 $ 6,412 $ 6,160
Income Statement
(in millions of dollars)
1999 2000 2001 2002
Net sales $ 6,134 $ 7,983 $5,363 $ 5,742
Cost of sales 4,438 5,817 4,128 4,139
Gross margin 1,696 2,166 1,235 1,603
Operating expenses:
Research and development 314 380 430 446
Selling, general and administration 996 1,166 1,138 1,111
Executive bonus 90 - 0 (2)
Restructuring costs 27 8 - 0 30
In-process research and development - 0 - 0 11 1
Total operating expenses 1,337 1,644 1,579 1,586
Operating income 359 522 (344) 17
Other income and (expenses) 317 570 304 70
Income (loss) before taxes 676 1,092 (40) 87
Provision (benefit) for taxes 75 306 (15) 22
Net income (loss) $ 601 $ 786 $ (25) $ 65
Basic EPS $ 2.10 $ 2.42 ($0.07) $ 0.18
Diluted EPS $ 1.81 $ 2.18 ($0.07) $ 0.18
1999 2000 2001 2002
Working Capital 2457 3115 3559.5 3677.5
   Current (Working Capital) Ratio 2.601 2.789 3.063 3.316
    Quick (Acid-Test) Ratio 1.451 1.845 1.833 1.637
         Inventory Turnover 90.571 219.509 187.636 147.821
                 Number of Days In Inventory 4.030 1.663 1.945 2.469
                  Accounts Receivable Turnover (assume all sales are credit sales) 7.499 9.771 7.559 11.139
                    Number of Days In Accounts Receivable 48.675 37.355 48.288 32.769
                   Inventory Conversion Cycle 52.705 39.018 50.233 35.238
                    Accounts Payable Turnover (use cost of goods sold as the numerator) 5.798 5.909 4.217 4.835
                 Number of Days In Accounts Payable 62.958 61.775 86.564 75.487
                 Net Cash Conversion Cycle -10.253 -22.757 -36.331 -40.249
              Liquidity Index 46.151 36.234 46.894 31.208