Calculate and analyze Financial Ratios
The assignment this week is to calculate and analyze Financial Ratios. If you have not done the Cash Flow exercise now would be a good time to do it as it will greatly help you with the assignment. The assignment specifics are similar to the other financial exercises in Appendix B of your text book. The assignment has two parts. Both parts involve using the financial statements from Apple. See attachment. Apple+Financials.pdf Part one. Using the Apple Financial Statements, perform the following calculations. I suggest you create a table or spreadsheet for your answers. I want to see the formulas you used to make your calculations as well as the results. Using the Kimberly-Clark table in Appendix B (page 261-262), calculate each of the Profitability, Leverage, Liquidity and Efficiency ratios for Apple for 2013 and 2012. Note: to complete the Inventory Days (DII) you will have to find a piece of data (inventory) that is not in the attached Apple financials. You can find the missing data in Apple′s 2011 annual report (http://investor.apple.com/
Part two
Based on your results, answer the following two questions. What trends do you see by looking at the ratios? What are they telling you? Note: Identify yourself and this assignment (Income Statement: Calculation and Analysis) on the cover page of your paper. My expectation is the paper will contain the following: Calculations. Show formulas and results. Grading will be based using the correct formula and correct results. Analysis. Restate the questions and your responses. Grading will be based on your level of insight. As for volume, think about a two paragraphs per answer. Remember to sight your sources if you use them in your write up. Your submission should be in MS Word. If you are using a spreadsheet, embed it in the document.
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