APA (edition "APA 6") Business and Management

Stocks and Earnings

Assignment

1.

Go to Apples Investor Relations website

2.

Select the Financial Information tab.

3.

Select the 10-K annual report dated 2016

1.

Go to Microsofts Investor Relations website

2.

Select Annual Reports

3.

Select 2016 Annual Report

Source: Apple Inc. Investor Relations. Retrieved from http://investor.apple.com/

Source: Microsoft. Investor Relations. Retrieved from https://www.microsoft.com/en-us/investor

You are part of a team of consultants analyzing the financial statements of Apple Inc. and Microsoft Inc. in order to assist investors in making decisions. You and your teammates will analyze different components of the Apple and Microsoft financial statements. You will use the contributions from your virtual teammates to address the concerns of the potential investors. The following conversation takes place in your team meeting:

Bill: Hi team, our goal is to gather data about Apple Inc. and Microsoft Inc.in order to provide our customers with accurate information about investing in these companies.

Sue: We need information about the companys assets and liabilities to ensure that they are in a stable financial position.

Bill: Right Sue, we need to know the companys cash and cash equivalents as well as the total current assets and liabilities. Can you get me that information as soon as possible? An investor wants to know if the company will use their money to grow or pay debt. Lets bring you in to take a look at the current stock and equity of the company.

Sue: Sounds good, we can always use another set of eyes.

Assignment Checklist:

What types of stock do Apple and Microsoft have and what is the par value?
What CPA firm last audited the Apple and Microsoft financial statements?
What are the earnings per share for Apple and Microsoft in the most current year?
Has Apple or Microsoft paid any dividends in the most current year?
Based on the information provided by your team members and any other relevant news articles you may find, compute the current ratio for Apple and Microsoft to use in your recommendation for investment.
Provide Bill, the team leader, with the checklist information. In addition, provide a written analysis (12 paragraphs) to the potential investor that clearly states if an investment in Apple or Microsoft is a good idea. Provide supporting documentation as needed. Ensure that you have used correct spelling, grammar, punctuation, mechanics, and usage. When citing sources (in-text citations and reference list), you should use current APA format and style. Review Writing Center resources on APA style and formatting. Access the Writing Center from the Academic Success Center found in the Academic Tools area in your course.

Sues team input

What data about cash and cash equivalents are shown in the consolidated balance sheet?

Apple: Cash and cash equivalents are reported at $20,484 million for 2016 and $21,120 million for 2015.

Microsoft: Cash and cash equivalents are reported at $6,510 million for 2016 and $5,950 million for 2015.

What were the total current assets and total current liabilities at September 28, 2013?

Apple: Total current assets at September 28, 2016, $106,869 million; total current liabilities at September 28, 2016, $79,006 million.

Microsoft: Total current assets at June 30, 2016, $139,660 million; total current liabilities at June 30, 2016, $59,570 million.

Your Input:

What type of stock do Apple and Microsoft have and what is the par or stated value per share of Apples common stock?

Apple has common stock.

Microsoft has common stock.

What CPA firm performed the audit of Apple and Microsoft financial statements?

Ernst & Young LLP was the CPA firm that audited Apples financial statements.

Deloitte & Touche LLP was the CPA firm that audited Microsofts financial statements.

What was the amount of Apples earnings per share in 2016? What was the amount of Microsofts earnings per share in 2016?

Apples basic earnings per share was $8.35, and its diluted earnings per share was $8.31.

Microsofts basic earnings per share was $2.12, and its diluted earnings per share was $2.10.

What amount, if any, did Apple and Microsoft declare in dividends on common stock in the year ended September 28, 2016?

According to the Consolidated Statements of Shareholders Equity, Apple declared $12,188 in dividends and dividend equivalent.

According to the Consolidated Statements of Shareholders Equity, Microsoft declared $11,329 in dividends and dividend equivalent.