TITLE PAGE

BAGNOL, DOROTHY LORRAINE

BAUTISTA, ALYSSANDRA
ELTAGONDE, MARIAH ALYSSA
ESPERA, MIGUEL
JAVINES, LEXUS JOSEF
LAPE, JAYMARC
LOZADA, KYRELLE MAE
SIBAL, LICHAEL MART
WAGNER, TIMOTHY
1. Why do you think that despite Microsoft having a higher amount of total
current assets, Apple still has a higher amount of total assets?
While it’s true that Microsoft is greater in terms of total current assets as
compared to Apple, this amount is not a reflection of the said company’s amount of total
assets. In fact, Apple has the higher amount of non-current assets, ranging up to
$232,891,000—barely catching up to Microsoft’s total assets of $263,281,000.

2. Based on the SFP, which do you think is performing better, Apple or Microsoft?
Why?
We have reason to believe that the performance of Apple, Inc. is better than that
of Microsoft Corporation based on their recent SFPs.

3. Which do you think is better, having higher current liability, or having higher
non-current liability?
Assuming that a company had invested on debts which it can surely benefit from
in the long run and that it is financially able to settle these, we think that having higher
non-current liability is more favorable than having higher current liability. To give further
justification, we’ll include Leonard’s (2018) statement that current liabilities factor into
the immediate needs of the company while non-current liabilities are considered a
capital investment into the long-term growth of the company. While paying immediate
needs is important, improving the company’s overall quality is something the employees
must consider as well.

4. Is it okay for a corporation to have no liability? Why or why not?

Ideally speaking, having no obligations to pay or worry about at all sounds good.
But in reality, if a corporation’s main goal is to optimize wealth maximization among its
common stockholders, keeping its assets stagnant isn’t exactly the wisest way to start.
Aside from it being a permanent staple in the financial statements, liabilities are there to
impose constraints on a firm’s cash flow (Anderson, n.d.). At some times, even a liability
can be considered beneficial to the increase of the corporation’s overall value. By
simply examining and studying the proper utilization of debt to build equity, things like
purchasing necessary equipment or financing a new marketing endeavor can be done
for the sake of the corporation’s improvement (Johnston, n.d.).

REFERENCES
https://witnesseth.typepad.com/blog/current-liabilities.html
https://www.accountingcoach.com/blog/are-liabilities-bad
https://smallbusiness.chron.com/effect-liabilities-share-equity-company-10659.html
https://smallbusiness.chron.com/companies-prefer-longterm-debt-61041.html
https://smallbusiness.chron.com/current-vs-longterm-liabilities-51157.html
https://www.investopedia.com/articles/investing/051315/how-microsoft-apples-balance-sheets-
compare.asp