Account analysis

profilehelpneded
apple_solutions_2.xls
Home>Business & Finance homework help>Accounting homework help>Account analysis

Supplement 1

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

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%