Financial Statement Development and Analysis - ACT 12
skomelapple_solutions.xls
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% |