Reference no: EM131522442
Assignment: Apple Corporation Financial Statement Analysis 2016 vs 2015
1. What percent of Apple's assets are financed by liabilities versus equity in 2016 and 2015? Based on that analysis, what does that say about the company's risk tolerance? Risky or Conservative or moderate risk and why?
2. What is Treasury Stock and why does a company engage in Treasury Stock transactions?
3. If the company doesn't engage in Treasury Stock transactions what three alternatives does the company have?
4. What impact does Treasury Stock have on the remaining shareholders?
5. How many shares of Treasury Stock did Apple purchase in 2016?
6. On average how much did Apple pay for each Treasury Share in 2016? If you are one of the remaining shareholders did Apple make the right decision to engage in Treasury Stock transactions during 2016? How do you know?
7. Taking into consideration any new common stock issued what percent has the company shrunk in terms of shareholders from 2013 to 2016? Which financial statement did you use to calculate your answer?
8. Calculate Apple's Current Ratio for 2015 and 2016? What has been the trend? What does the Current Ratio measure?
9. If a company has a 10:1 current ratio, why might you be concerned if you're a shareholder? Do you have the same concern if you're a vendor that supplies the company with inventory and explain why?