FINANCIAL ANALYSIS MODEL

ANALYST'S NAME Professor Dee Malone

NAME OF COMPANY Apple Inc.

2006

NUMBER OF YEARS OF DATA 5

INCOME STATEMENT 2006 2007 2008 2009 2010

Sales Revenue $19,315 $24,006 $32,479 $42,905 $65,225

Less: Cost of Goods Sold $13,507 $15,555 $20,898 $24,999 $38,609

Gross Profits $5,808 $8,451 $11,581 $17,906 $26,616 =IF($B$8>4,F13-F14," ")

Less: Operating Expenses:

Selling Expense $3,145 $3,745 $4,870 $5,482 $7,299

Depreciation Expense $210 $297 $436 $684 $932

Total Operating Expenses $3,355 $4,042 $5,306 $6,166 $8,231 =IF($B$8>4,SUM(F17:F20)," ")

Operating Profits $2,453 $4,409 $6,275 $11,740 $18,385 =IF($B$8>4,F15-F21," ")

Less: Interest Expense $0 $0 $0 $0 $0

$365 $599 $620 $326 $155

Net Profits Before Taxes $2,818 $5,008 $6,895 $12,066 $18,540 =IF($B$8>4,F22-F23," ")

Less: Taxes $829 $1,512 $2,061 $3,831 $4,527

Net Profit After Taxes $1,989 $3,496 $4,834 $8,235 $14,013 =IF($B$8>4,F24-F25," ")

Less: Pref. Stock Divds. $0 $0 $0 $0 $0

$1,989 $3,496 $4,834 $8,235 $14,013 IF($B$8>4,F26-F27," ")

BALANCE SHEET

Current Assets:

Cash $10,110 $15,386 $24,490 $23,464 $25,620

Accounts Receivable $2,845 $4,029 $4,704 $5,057 $9,924

Inventories $270 $346 $509 $455 $1,051

Prepaid Expenses $208 $417 $475 $309 $157

Other Current Assets $1,076 $1,778 $4,512 $2,270 $4,926

Total Current Assets $14,509 $21,956 $34,690 $31,555 $41,678 =IF($B$8>4,SUM(F33:F36)," ")

Gross Fixed Assets (at cost):

Gross Plant, Property &Equipment $2,075 $2,841 $3,747 $4,667 $7,234

Total Gross Fixed Assets $2,075 $2,841 $3,747 $4,667 $7,234 =IF($B$8>4,SUM(F39:F43)," ")

Less: Accumulated Depreciation $794 $1,009 $1,292 $1,713 $2,466

Net Fixed Assets $1,281 $1,832 $2,455 $2,954 $4,768 =IF($B$8>4,F44-F45," ")

Other Assets $1,415 $1,559 $2,427 $12,992 $28,737

Total Assets $17,205 $25,347 $39,572 $47,501 $75,183 =IF($B$8>4,F37+F46," ")

Current Liabilities: 2006 2007 2008 2009 2010 =IF($B$8>4,F37+F46," ")

Accounts Payable $3,390 $4,970 $5,520 $5,601 $12,015

Accruals $2,011 $2,374 $3,038 $3,197 $4,850

Taxes Payable $0 $0 $0 $430 $210

Other Current Liabilities $1,070 $1,955 $5,534 $2,278 $3,647

Total Current Liabilities $6,471 $9,299 $14,092 $11,506 $20,722 =IF($B$8>4,SUM(F51:F55)," ")

L / T Debt (Inc. Financial Leases) $750 $1,516 $4,450 $4,355 $6,670

Total Liabilities $7,221 $10,815 $18,542 $15,861 $27,392 =IF($B$8>4,F56+F57," ")

Preferred Stock $0 $0 $0 $0 $0

Common Stock $4,355 $5,368 $7,177 $8,210 $10,668

Paid-In Capital In Excess of Par $0 $0 $0 $0 $0

Retained Earnings $5,629 $9,164 $13,853 $23,430 $37,123

Note: Enter data in Blue-coded cells; Black cells are computer generated

FIRST CALENDAR YEAR OF DATA

Non Operating Income/ Expense

Earnings Available for Common Stockholders

A B C D E F G H I

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

56

57

Total Stockholders' Equity $9,984 $14,532 $21,030 $31,640 $47,791 =IF($B$8>4,SUM(F59:F62)," ")

Total Liabs. & Stockhldrs' Equity $17,205 $25,347 $39,572 $47,501 $75,183 =IF($B$8>4,F58+F63," ")

Reconciliation TA & TL/SE $0 $0 $0 $0 $0 =IF($B$8>4,F64-F48," ")

Number of Common Shares 855 872 888 900 916

End-of-Year Stock Price $76.98 $153.47 $113.66 $185.35 $283.75

RATIO ANALYSIS

Current Ratio 2.24 2.36 2.46 2.74 2.01 =IF($B$8>4,F37/F56," ")

Quick Ratio 2.00 2.09 2.07 2.48 1.72 =IF($B$8>4,(F37-F36)/F56," ")

Inventory Turnover 50.03 44.96 41.06 54.94 36.74 =IF($B$8>4,F14/F36," ")

Average Collection Period 53.03 60.42 52.14 42.43 54.77 =IF($B$8>4,F35/(F13/360)," ")

Fixed Asset Turnover 15.08 13.10 13.23 14.52 13.68 =IF($B$8>4,F13/F46," ")

Total Asset Turnover 1.12 0.95 0.82 0.90 0.87 =IF($B$8>4,F13/F48," ")

Debt Ratio 0.42 0.43 0.47 0.33 0.36 =IF($B$8>4,F58/F48," ")

Debt-to-Equity 0.08 0.10 0.21 0.14 0.14 =IF($B$8>4,F57/F63," ")

Times Interest Earned #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! =IF($B$8>4,F22/F23," ")

Gross Profit Margin 30.07% 35.20% 35.66% 41.73% 40.81% =IF($B$8>4,F15/F13," ")

Operating Profit Margin 12.70% 18.37% 19.32% 27.36% 28.19% =IF($B$8>4,F22/F13," ")

Net Profit Margin 10.30% 14.56% 14.88% 19.19% 21.48% =IF($B$8>4,F26/F13," ")

Return on Total Assets (ROA) 11.56% 13.79% 12.22% 17.34% 18.64% =IF($B$8>4,F26/F48," ")

Return on Equity (ROE) 19.92% 24.06% 22.99% 26.03% 29.32% =IF($B$8>4,F26/F63," ")

Earnings Per Share $2.33 $4.01 $5.44 $9.15 $15.30 =IF($B$8>4,F28/F66," ")

Price/Earnings Ratio 33.10 38.29 20.89 20.25 18.55 =IF(AND(F67>0,F89>0),F67/F89," ")

DUPONT ANALYSIS

Net Profit AT/Sales 10.30% 14.56% 14.88% 19.19% 21.48% =IF($B$8>4,F26/F13," ")

Sales/Total Assets 112.26% 94.71% 82.08% 90.32% 86.75% =IF($B$8>4,F13/F48," ")

ROA 11.56% 13.79% 12.22% 17.34% 18.64% =IF($B$8>4,F94*F95," ")

Net Profit AT/Total Assets 11.56% 13.79% 12.22% 17.34% 18.64% =IF($B$8>4,F26/F48," ")

Total Assets/Stockhldrs. Equity 172.33% 174.42% 188.17% 150.13% 157.32% =IF($B$8>4,F48/F63," ")

ROE 19.92% 24.06% 22.99% 26.03% 29.32% =IF($B$8>4,F97*F98," ")

STATEMENT OF CASH FLOWS

2006 2007 2008 2009 2010

Net Profit After Taxes $3,496 $4,834 $8,235 $14,013

Depreciation $215 $283 $421 $753

Decrease in Accts. Receiv. ($1,184) ($675) ($353) ($4,867)

Decrease in Inventories ($76) ($163) $54 ($596)

Decrease in Prepaid Expenses ($209) ($58) $166 $152

Decrease in Other Assets ($846) ($3,602) ($8,323) ($18,401)

Increase in Accounts Pay. $1,580 $550 $81 $6,414

Increase in Accruals $363 $664 $159 $1,653

Increase in Taxes Payable $0 $0 $430 ($220)

Increase in Other Cur. Lia. $885 $3,579 ($3,256) $1,369

Cash Flow from Oper. Act. $4,224 $5,412 ($2,386) $270

Increase in Gross Fixed Assets ($766) ($906) ($920) ($2,567)

Cash Flow from Investments ($766) ($906) ($920) ($2,567)

CASH FLOW FROM OPERATING ACTIVITIES

CASH FLOW FROM INVESTMENT ACTIVITIES

A B C D E F G H I58

59

60

61

62

63

64

65

66

67

68

69

70

71

72

73

74

75

76

77

78

79

80

81

82

83

84

85

86

87

88

89

90

91

92

93

94

95

96

97

98

99

100

101

102

103

104

105

106

107

108

109

110

111

112

113

114

115

116

Increase in Notes Payable $0 $0 $0 $0

Increase in Long-Term Debt $766 $2,934 ($95) $2,315

Changes in Stockholders' Equity $1,013 $1,809 $1,033 $2,458

Preferred Dividends Paid $0 $0 $0 $0

$39 ($145) $1,342 ($320)

$1,818 $4,598 $2,280 $4,453

Net Incr. in Cash / Mark. Securities $5,276 $9,104 ($1,026) $2,156

CASH FLOW FROM FINANCING ACTIVITIES

Common Dividends paid/ Additional paid in capital

Cash Flow from Financing Activities

A B C D E F G H I

117

118

119

120

121

122

123

124

125