Assignment FRA Part 3

PLEASE READ AND FOLLOW THESE INSTRUCTIONS CAREFULLY

 This is the second part of your assignment for FRA.

 Do NOT submit this, or any, part of your assignment separately.

 Other parts will be published soon and the entire assignment will be
submitted (as one document) in the final week of this semester.

Once you have found the figures and completed the calculations, type in the
answers into the appropriate places in the tables.

Complete the following tables for Apple and a company you been allocated.
Use figures provided on MyGUST for Apple.

The list of companies allocated for each student will be published on MyGUST
on April 5th

The purpose of this project is to develop your independent research

and analysis skills.

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Assignment FRA Part 3

Summary of steps to follow when you have been allocated a company

(published on MyGUST on April 5th ).

1. Read the instructions and guidance provided in this file and in the excel
file (on MyGUST) with the names and web addresses of each company.
2. Read the instructions again!
3. Try to find the figures you need applying your knowledge of Financial
Reporting and the guidance provided.
4. If not sure of a figure:
a. Read the instructions again!!
b. Check with your colleagues via WhatsApp etc.
c. Ask for clarification in class
5. The project will not be submitted until the final week of the semester
and you will have plenty of time find the relevant figures and (if
necessary) to check with your colleagues or to clarify anything in class.
6. If you are working on this late in the semester near the submission date
and cannot follow the steps outlined in 4 above, then make an
assumption and state this on the last page of the assignment.
7. As stated previously, and in fairness to the students who are following
the instructions provided, no checking of figures will be provided outside
of class hours. You can ask to chat at the end of the class if necessary.

If you have a critical urgent query relating to some issue not covered in the
lectures or in the notes on MyGUST, and the issue absolutely must be dealt
with before the next class, any email (or MS Teams private message) sent
should state the Course Code (FRA, Acct409-81 or 409-82) in the subject
header. Also, as a matter of basic business courtesy, please acknowledge (with
a brief email) any response received.

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 Apple Inc.
CONSOLIDATED BALANCE SHEETS
(In millions, except number of shares
which are reflected in thousands and par
September 28, September 29,
2019 2018
ASSET S:
Current assets:
Cash and cash equivalents $ 48,844 $ 25,913
Marketable securities 51,713 40,388
Accounts receivable, net 22,926 23,186
Inventories 4,106 3,956
Vendor non-trade receivables 22,878 25,809
Other current assets 12,352 12,087
Total current assets 162,819 131,339

Non-current assets:
Marketable securities 105,341 170,799
Property, plant and equipment, net 37,378 41,304
Other non-current assets 32,978 22,283

Total non-current assets 175,697 234,386

Total assets $ 338,516 $ 365,725

LIABILITIES AND SHAREHOLDERS’ EQUITY:

Current liabilities:
Accounts payable $ 46,236 $ 55,888
Other current liabilities 37,720 33,327
Deferred revenue 5,522 5,966
Commercial paper 5,980 11,964

Term debt 10,260 8,784

Total current liabilities 105,718 115,929

Non-current liabilities:
Term debt 91,807 93,735
Other non-current liabilities 50,503 48,914

Total non-current liabilities 142,310 142,649

Total liabilities 248,028 258,578

Shareholders’ equity:
Common stock and additional paid-in capital,
$0.00001 par value: 12,600,000 shares
authorized; 4,443,236 and 4,754,986 shares
45,174 40,201
issued and outstanding, respectively
Retained earnings 45,898 70,400
Accumulated other comprehensive
(584 ) (3,454 )
income/(loss)
Total shareholders’ equity 90,488 107,147

Total liabilities and

$ 338,516 $ 365,725
shareholders’ equity

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 TABLE 3
[NOTE: Please read the guidance notes below)
NAME OF Year CSVA Largest Item in: Current
Current Assets Current Assets (CA) Ratio
COMPANY (Note 4) Current Liabilities (CL) (Note 5)
McDonalds (Note 1) 2017 16% CA: Cash and Equivalents 1.8: 1
CL: Accrued Payroll and Other
Liabilities
Microsoft (Note 1) 2018 66% CA: Short-term investments 2.90: 1
CL: Short-term unearned
revenue

Verizon (Note 1) 2017 12% CA: Accounts receivable, net of 0.9: 1

allowances
CL: Accounts payable and
accrued liabilities

Walmart (Note 1) 2018 29% CA: Inventories 0.7:1

CL: Accounts payable

Apple (Note 2) 2019 48% CA: Marketable securities 1.54: 1

CL: Accounts payable

WALGREENS BOOTS 2020 21% CA: Inventories 0.7:1

CL: Accounts payable
ALLIANCE, INC. AND
SUBSIDIARIES

GUIDELINES FOR TABLE 3

Note 1
Use figures from the online video resource https://www.youtube.com/watch?
v=dkiSWO2OYho
You should use the years demonstrated in the video for each company. [Start at 5.54]

Note 2
Use figures from Apple’s Balance Sheet for 2019 (see page 4 above).

Note 3
Use figures for your company for the most recent year from the Excel file
__V3-A_FRA Co Project List
(See MyGUST 4 April)

Note 4
Insert the Common Size Vertical Analysis figure for Current Assets (CA/TA x 100).

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You may round each figure to the nearest whole number expressed as percentage.

Note 5
Insert the Current Ratio (CA/CL) in this column for each company. You should show the
result expressed to one decimal place.
Note also, that this figure is expressed as a ratio, i.e. it is always compared to a base of 1.
For example: 1.8: 1

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