Assignments

2.14 Tishas Toys inventory

2.19 Balance Sheet for Chester Co.
2.20 ShopWorld Analysis
2.34 Comparison of Apple and Dell
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2.14 Tishas Toys Inventory
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2.19 Chester Co.
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2.20 ShopWorld
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2.20 ShopWorld
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2.34 Comparison of Apple and Dell
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Following are selected income statement and balance sheet data from two computer
competitors: Apple and Dell.
Income Statement ($ millions) Apple Dell
Sales $ 65,225 $ 61,494
Cost of goods sold 39,541 50,098
Gross profit 25,684 11,396
Total expenses 11,671 8,761
Net income $ 14,013 $ 2,635
Balance Sheet ($ millions) Apple Dell
Current assets $ 41,678 29,021
Long-term assets 33,505 9,578
Total assets $ 75,183 38,599
Current liabilties $ 20,722 19,483
Long-term liabilities 6,670 11,350
Total liabilities 27,392 30,833
Stockholders' Equity 47,791 7,766
Total liabilities and equity $ 75,183 38,599
2.34 Comparison of Apple and Dell
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A. Express each income statement amount as a percentage of sales.
Comment on any differences observed between the two companies especially
as they relate to their respective business models. For example Apples gross
profit percentage of sales is considerably higher than Dells. What aspect of
sales is driving its profitability?

B. Express each balance sheet amount as a percentage of total assets.
Comment on any differences observed between the two companies. Apple
has chosen to structure itself with a higher proportion of equity than Dell. How
does this capital structure decision affect our perception of the relative
riskiness of these two companies?