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Reviewer: (type your name here)
Read and review this Executive Summary memo on Apple’s BS and SOCF. Highlight errors in yellow
(four of them) using Word’s Text Highlight tool (located in the Header bar, Home tab, Font section).
Executive Summary
Date: April 5, 2018
To: Financial Analysts
From: Eric Mlynarczyk
Subject: Comprehensive Financial Analysis – Apple Inc.
Financial Condition – Balance Sheet
Assets: The trend for total assets has increased over the years, with footings of $207.0 billion in 2013 year-
end and $375.3 billion in 2017 year-end. The CAGR for the period was 16.0%. Total assets at the 2017
year-end were 16.7% higher than the prior year. The trend for current assets was mixed. Short-term
investments, accounts receivable, inventory, and other current assets all increased from 2016 year-end to
2017 year-end. Cash & cash equivalents had a slight decrease in the current year over year comparison.
Total current assets are currently 34.3% of total assets, compared to 30.8% at the prior year-end. The trend
for long-term assets has increased over the years, but has been mixed as a percentage of total assets. Long-
term assets consists of primarily long-term investments followed by property, plant, and equipment,
acquired intangible assets and goodwill, and other assets. Long-term assets are currently 65.7% of total
assets, compared to 66.8% at the prior year-end.
Liabilities: The trend for total liabilities has increased, with footings of $83.5 billion at 2013 year-end and
$241.3 billion at 2017 year-end. The current year represents the high point. The CAGR for the period was
37.1%. Total liabilities at 2017 year-end were 24.7% higher than the prior year-end. The trend for current
liabilities was mixed, only showing a decrease in 2016 year-end. While accounts payable and short-term
debt has increased over the years, accrued liabilities and deferred revenue have increased until 2016 year-
end when they decreased resulting in a mixed trend. Total current liabilities are currently 26.9% of total
assets, compared to 24.6% at the prior year-end. The trend for long-term liabilities has increased over the
years. Long-term debt has increased from 8.2% of total assets in 2013 to 25.9% at the current year-end.
flows have been adequate for capital expenditures and security investment activity. Financing activities
have focused primarily on cash outflows for stock repurchases and dividend payments. The 2015 cash flow
reported a sizeable increase in cash from the issuance of debt and high earnings compared to other years.