BUS 401 SNHU Apple Micro Annual Balance 2019 & Annual Balance Sheet 2019 Report Part II Prompt For this section of your employment exam, you will select tw

BUS 401 SNHU Apple Micro Annual Balance 2019 & Annual Balance Sheet 2019 Report Part II Prompt For this section of your employment exam, you will select two companies. The first company needs to come from your TDAU thinkorswim portfolio. The second needs to be a competitor of the first company from the same industry. You will be responsible for collecting, synthesizing, and making decisions regarding both companies. After evaluating these companies’ financial data, you will then decide which company’s stock is the better investment. This section of your employment examination must be submitted in two parts. Part A will contain the workbooks that house all of your quantitative data and formulas, along with any of the information that is relevant for your chosen companies. Part B will contain your answers to the questions asked below, composed in a cohesive manner. If you are referring to data that is found within the workbooks in Part A, be sure to include a citation—for example, “rate of return is 3.570 USD (E64, WB2),” where E64 is the cell that the calculation took place in and WB2 is designating “workbook 2.” This ensures that your instructor can quickly and accurately check data entry, formula use, and financial calculations. Your submission must address the following critical elements: I. Preparing the Workbooks A. Download the annual income statements, balance sheets, and cash flow statements for the last three completed fiscal years for your chosen companies. This information must be included in your final submission. B. Prepare a worksheet for each of the companies to display their financial data for the last three fiscal years. Ensure your data is accurate and organized. Include these worksheets as a workbook in your final submission. C. Find historical stock prices for both companies and add this information to the respective spreadsheets. Consider the appropriate date range you should use. II. Three-Year Returns A. What is the three-year return on the stock price of the first company (Company A)? How is the stock performing? Ensure that you use the appropriate formula in your spreadsheets to calculate the three-year return on the given company’s stock price. B. What is the three-year return on the stock price of the second company (Company B)? How is this stock performing? Ensure that you use the appropriate formula in your spreadsheets to calculate the three-year return on your chosen company’s stock price. C. How do these two stocks compare in terms of three-year returns? What does this indicate about these two companies? III. Financial Calculations A. Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the price-to-earnings ratio for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula. B. Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the debt-to-equity ratios for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula. C. Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the return-on-equity ratios for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula. D. Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the earnings per share for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula. E. Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the profit margins for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula. F. Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the free cash flows for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula. IV. Industry Averages A. Obtain current industry averages of three of the financial calculations above for both companies and add this information to your spreadsheet for comparison. Ensure the accuracy and organization of your data. B. In this context, how is each company’s financial health? How do these two companies compare to one another? Consider the appropriate date range you should use. V. Performance Over Time A. Analyze the performance of the Company A over time. What financial strengths and weaknesses does this company have? Consider addressing the free cash flows and ratios you calculated earlier. B. Analyze the performance of your Company B over time. What financial strengths and weaknesses does this company have? Consider addressing the free cash flows and ratios you calculated earlier. C. Analyze how the data differ between these two companies. Why do you think this is? Consider addressing the free cash flows and ratios you calculated earlier. VI. Investment A. Are the companies considered growth or value companies? Why? B. Which company’s stock is the better investment? Consider supporting your answer with data. Final Project Part II Rubric Guidelines for Submission: This part of the final project will be submitted in two parts. Part A will contain the workbooks that house all of your quantitative data and formulas, along with any of the information that is relevant for your chosen company. Part B will contain your answers to the prompts, composed in a cohesive manner. Part B should use double spacing, 12-point Times New Roman font, and one-inch margins. Citations should be formatted according to APA style. Company A Name & Stock Symbol
Exchange rate used is that of the Year End reported date
As Reported Annual Balance Sheet
Report Date
Currency
Audit Status
Consolidated
Scale
Cash & cash equivalents
Restricted cash & marketable securities
Restricted cash
Accounts receivable
Raw materials
Work in process
Finished goods
Service parts
Inventory
Prepaid expenses & other current assets
Total current assets
Operating lease vehicles, net
Machinery, equipment & office furniture
Tooling
Leasehold improvements
Building & building improvements
Land
Computer equipment & software
Construction in progress
Property & equipment, gross
Less: accumulated depreciation & amortization
Property & equipment, net
Restricted cash
Emission credits
Debt issuance costs, net
Other assets
Other assets
Other assets
Total assets
Accounts payable
Accrued warranty, current portion
Build to suit finance obligation, current portion
Accrued interest
Environmental liabilities, current portion
Other accrued expenses
Taxes payable
Accrued purchases
Payroll & related costs
Warranty & other accrued expenses
Accrued liabilities
12/31/2015
USD
Not Qualified
Yes
Thousands
845,889
3,012
49,109
184,665
42,500
69,324
43,866
340,355
27,574
1,265,939
382,425
322,394
230,385
94,763
67,707
45,020
42,073
76,294
878,636
140,142
738,494
6,435
13,930
7,315
2,392
23,637
2,416,930
303,969
19,917
2,132
2,578
38,067
19,023
26,535
108,252
Deferred revenue
Resale value guarantee
Capital lease obligations, current portion
Customer deposits
Convertible debt, current portion
Long term debt & capital leases
Total current liabilities
Deferred revenue
Long term debt & capital leases
Resale value guarantee
Capital lease obligations, less current portion
Convertible debt, less current portion
Accrued warranty, less current portion
Deferred rent liability
Deferred tax liabilities
Environmental liabilities, less current portion
Other long-term liabilities
Other long-term liabilities
Other long-term liabilities
Convertible senior notes
Total liabilities
Common stock
Additional paid-in capital
Accumulated other comprehensive income (loss)
Retained earnings (accumulated deficit)
Total stockholders’ equity (deficit)
91,882
7,722
163,153
182
675,160
181,180
236,299
12,855
586,119
33,265
9,886
6,821
3,364
4,861
1,749,810
123
1,806,617
-1,139,620
667,120
Reference (example)
Mergent Online. (2018). Company A Retrieved January 21, 2018 from: (link to financial statement here)
See Ratios on 2017 Balance Sheet
(Students: Let your instructor know where your ratios are located if it’s not on the first ta
Data quality check:
Assets = Liabilities + Equity
2,416,930
2,416,930
cial statement here)
Company A Name & Stock Symbol
Exchange rate used is that of the Year End reported date
As Reported Annual Balance Sheet
Report Date
Currency
Audit Status
Consolidated
Scale
Cash & cash equivalents
Restricted cash & marketable securities
Restricted cash
Accounts receivable
Raw materials
Work in process
Finished goods
Service parts
Inventory
Prepaid expenses & other current assets
Total current assets
Operating lease vehicles, net
Machinery, equipment & office furniture
Tooling
Leasehold improvements
Building & building improvements
Land
Computer equipment & software
Construction in progress
Property & equipment, gross
Less: accumulated depreciation & amortization
Property & equipment, net
Restricted cash
Emission credits
Debt issuance costs, net
Other assets
Other assets
Other assets
Total assets
Accounts payable
Accrued warranty, current portion
Build to suit finance obligation, current portion
Accrued interest
Environmental liabilities, current portion
Other accrued expenses
Taxes payable
Accrued purchases
Payroll & related costs
Warranty & other accrued expenses
Accrued liabilities
12/31/2016
USD
Not Qualified
Yes
Thousands
1,905,713
17,947
226,604
392,292
56,114
397,318
107,951
953,675
94,718
3,198,657
766,744
720,746
295,906
230,270
154,362
49,478
98,970
572,125
2,121,857
292,590
1,829,267
11,374
43,209
5,849,251
777,946
32,321
21,030
7,222
3,573
10,470
71,229
68,547
54,492
268,884
Deferred revenue
Resale value guarantee
Capital lease obligations, current portion
Customer deposits
Convertible debt, current portion
Long term debt & capital leases
Total current liabilities
Deferred revenue
Long term debt & capital leases
Resale value guarantee
Capital lease obligations, less current portion
Convertible debt, less current portion
Accrued warranty, less current portion
Deferred rent liability
Deferred tax liabilities
Environmental liabilities, less current portion
Other long-term liabilities
Other long-term liabilities
Other long-term liabilities
Convertible senior notes
Total liabilities
Common stock
Additional paid-in capital
Accumulated other comprehensive income (loss)
Retained earnings (accumulated deficit)
Total stockholders’ equity (deficit)
191,651
9,532
257,587
601,566
2,107,166
292,271
487,879
12,267
1,806,518
173,244
58,196
4,937,541
126
2,345,266
-1,433,682
911,710
Reference (example)
Mergent Online. (2018). Company A Retrieved January 21, 2018 from: (link to financial statement here)
cial statement here)
Data quality check:
Assets = Liabilities + Equity
5,849,251
5,849,251
Company A Name & Stock Symbol
Exchange rate used is that of the Year End reported date
As Reported Annual Balance Sheet
Report Date
Currency
Audit Status
Consolidated
Scale
Cash & cash equivalents
Restricted cash & marketable securities
Restricted cash
Accounts receivable
Raw materials
Work in process
Finished goods
Service parts
Inventory
Prepaid expenses & other current assets
Total current assets
Operating lease vehicles, net
Machinery, equipment & office furniture
Tooling
Leasehold improvements
Building & building improvements
Land
Computer equipment & software
Construction in progress
Property & equipment, gross
Less: accumulated depreciation & amortization
Property & equipment, net
Restricted cash
Emission credits
Debt issuance costs, net
Other assets
Other assets
Other assets
Total assets
Accounts payable
Accrued warranty, current portion
Build to suit finance obligation, current portion
Accrued interest
Environmental liabilities, current portion
Other accrued expenses
Taxes payable
Accrued purchases
Payroll & related costs
Warranty & other accrued expenses
Accrued liabilities
12/31/2017
USD
Not Qualified
Yes
Thousands
1,196,908
22,628
168,965
528,935
163,830
476,512
108,561
1,277,838
125,229
2,791,568
1,791,403
1,694,910
550,902
338,392
461,303
60,234
175,512
693,207
3,974,460
571,126
3,403,334
31,522
74,633
8,092,460
916,148
101,206
140,540
86,859
94,193
422,798
Deferred revenue
Resale value guarantee
Capital lease obligations, current portion
Customer deposits
Convertible debt, current portion
Long term debt & capital leases
Total current liabilities
Deferred revenue
Long term debt & capital leases
Resale value guarantee
Capital lease obligations, less current portion
Convertible debt, less current portion
Accrued warranty, less current portion
Deferred rent liability
Deferred tax liabilities
Environmental liabilities, less current portion
Other long-term liabilities
Other long-term liabilities
Other long-term liabilities
Convertible senior notes
Total liabilities
Common stock
Additional paid-in capital
Accumulated other comprehensive income (loss)
Retained earnings (accumulated deficit)
Total stockholders’ equity (deficit)
423,961
136,831
283,370
633,166
2,816,274
446,105
2,040,375
1,293,741
364,976
42,045
7,003,516
131
3,414,692
-3,556
-2,322,323
1,088,944
References (example)
Mergent Online. (2018). Company A Retrieved January 21, 2018 from: (link to financial statement here)
Industry Averages. (2018). Industry: Example Only – Major. Retrieved February 11, 2018 from: (link to industry averages here)
Ratios
2017
Current Ratio
Debt / Equity Ratio
Free Cash Flow (000)
Earnings per Share
Price / earnings ratio
Return on Equity
Net profit margin
2016
0.99
1.52
6.43
5.42
-$2,159,349
-$1,027,222
$
(6.93) $
(2.36) $
-34.62
-94.20
-81.61%
-32.25%
-21.96%
-9.19%
Stock Data
Number of Shares Outstanding
131,425
125,688
Closing Price Last Business Day in December
240.01
222.41
2015
1.88
2.62
-$6,230
(0.62)
-242.72
-11.09%
-3.68%
123,091
150.43
Data quality check:
Assets = Liabilities + Equity
8,092,460
8,092,460
o financial statement here)
ary 11, 2018 from: (link to industry averages here)
Industry Average (Students: include a reference for this data too)
109.19
1.63
13.00
12.40%
5.00%
Company A Name & Stock Symbol
Exchange rate used is that of the Year End reported date
As Reported Annual Income Statement
Report Date
Currency
Audit Status
Consolidated
Scale
Development services
Automotive sales
Services & other revenues
Total revenues
Development services
Automotive sales
Services & other cost of revenues
Total cost of revenues
Gross profit (loss)
Research & development
Selling, general & administrative
Total operating expenses
Income (loss) from operations
Interest income
Interest expense
Other income (expense), net
Income (loss) before income taxes – domestic
Income (loss) before income taxes – international
Income (loss) before income taxes
Current state income taxes (benefit)
Current foreign income taxes (benefit)
Current income taxes (benefit)
Deferred foreign income taxes (benefit)
Deferred income taxes (benefit)
Provision for income taxes (benefit)
Net income (loss)
Weighted average shares outstanding-basic
Weighted average shares outstanding-diluted
Year end shares outstanding
Net income (loss) per share – basic
Net income (loss) per share – diluted
Number of full time employees
Number of common stockholders
Foreign currency translation adjustments
12/31/2015
USD
Not Qualified
Yes
Thousands
15,710
1,997,786
2,013,496
13,356
1,543,878
1,557,234
456,262
231,976
285,569
517,545
-61,283
189
32,934
22,602
-75,279
3,853
-71,426
178
2,349
2,527
61
61
2,588
-74,014
119,421
119,421
123,091
-1
-1
5,859
699
–
Reference (example)
Mergent Online. (2018). Company A Retrieved January 21, 2018 from: (link to financial statement here)
Company A Name & Stock Symbol
Exchange rate used is that of the Year End reported date
As Reported Annual Income Statement
Report Date
Currency
Audit Status
Consolidated
Scale
Development services
Automotive sales
Services & other revenues
Total revenues
Development services
Automotive sales
Services & other cost of revenues
Total cost of revenues
Gross profit (loss)
Research & development
Selling, general & administrative
Total operating expenses
Income (loss) from operations
Interest income
Interest expense
Other income (expense), net
Income (loss) before income taxes – domestic
Income (loss) before income taxes – international
Income (loss) before income taxes
Current state income taxes (benefit)
Current foreign income taxes (benefit)
Current income taxes (benefit)
Deferred foreign income taxes (benefit)
Deferred income taxes (benefit)
Provision for income taxes (benefit)
Net income (loss)
Weighted average shares outstanding-basic
Weighted average shares outstanding-diluted
Year end shares outstanding
Net income (loss) per share – basic
Net income (loss) per share – diluted
Number of full time employees
Number of common stockholders
Foreign currency translation adjustments
12/31/2016
USD
Not Qualified
Yes
Thousands
5,633
3,192,723
3,198,356
6,674
2,310,011
2,316,685
881,671
464,700
603,660
1,068,360
-186,689
1,126
100,886
1,813
-60,451
-224,185
-284,636
257
9,203
9,460
-56
-56
9,404
-294,040
124,539
124,539
125,688
-2
-2
10,161
769
–
Reference (example)
Mergent Online. (2018). Company A Retrieved January 21, 2018 from: (link to financial statement here)
Company A Name & Stock Symbol
Exchange rate used is that of the Year End reported date
As Reported Annual Income Statement
Report Date
Currency
Audit Status
Consolidated
Scale
Development services
Automotive sales
Services & other revenues
Total revenues
Development services
Automotive sales
Services & other cost of revenues
Total cost of revenues
Gross profit (loss)
Research & development
Selling, general & administrative
Total operating expenses
Income (loss) from operations
Interest income
Interest expense
Other income (expense), net
Income (loss) before income taxes – domestic
Income (loss) before income taxes – international
Income (loss) before income taxes
Current state income taxes (benefit)
Current foreign income taxes (benefit)
Current income taxes (benefit)
Deferred foreign income taxes (benefit)
Deferred income taxes (benefit)
Provision for income taxes (benefit)
Net income (loss)
Weighted average shares outstanding-basic
Weighted average shares outstanding-diluted
Year end shares outstanding
Net income (loss) per share – basic
Net income (loss) per share – diluted
Number of full time employees
Number of common stockholders
Foreign currency translation adjustments
12/31/2017
USD
Not Qualified
Yes
Thousands
3,740,973
305,052
4,046,025
2,823,302
299,220
3,122,522
923,503
717,900
922,232
1,640,132
-716,629
1,508
118,851
-41,652
-415,694
-459,930
-875,624
525
10,342
10,867
2,172
2,172
13,039
-888,663
128,202
128,202
131,425
-7
-7
13,058
836
-10,999
Reference (example)
Mergent Online. (2018). Company A Retrieved January 21, 2018 from: (link to financial statement here)
Company A Name & Stock Symbol
Exchange rate used is that of the Year End reported date
As Reported Annual Cash Flow
Report Date
Currency
Audit Status
12/31/2015
USD
Not Qualified
Consolidated
Yes
Scale
Thousands
Net income (loss)
-74,014
Depreciation & amortization
106,083
Stock-based compensation
80,737
Amortization of discount on convertible debt
9,143
Inventory write-downs
8,918
Write-off of Department of Energy (DOE) loan origination costs
5,558
Change in fair value of DOE warrant liability
-10,692
Fixed asset disposal
Other non-cash operating activities
3,611
Foreign currency transaction loss (gain)
3,655
Account receivables
-21,917
Inventories & operating lease vehicles
-463,270
Prepaid expenses & other current assets
-17,466
Other assets
-342
Accounts payable
-243
Accrued liabilities
66,567
Accounts payable & accrued expenses
Deferred revenue
268,153
Customer deposits
24,243
Resale value guarantee
236,299
Other long-term liabilities
32,971
Net cash flows from operating activities
257,994
Purchases of property & equipment excluding capital leases
-264,224
Withdrawals out of (transfers into) our dedicated Department of Energy account,
14,752 net
Decrease (increase) in restricted cash
55
Purchase of short-term marketable securities
Maturities of short-term marketable securities
Business acquisition
Net cash flows from investing activities
-249,417
Proceeds from issuance of convertible debt
660,000
Proceeds from issuance of convertible debt & other debt
Proceeds from issuance of common stock in public
360,000
Proceeds from issuance of warrants
120,318
Proceeds from exercise of stock options & other stock issuances
95,307
Proceeds from issuance of common stock in private placements
55,000
Principal payments on DOE loans
-452,337
Purchase of convertible note hedges
-177,540
Common stock & convertible debt issuance costs
-16,901
Principal payments on capital leases & other debt
-8,425
Collateralized lease borrowings
Net cash flows from financing activities
635,422
Effect of exchange rate changes on cash & cash equivalents
–
Net increase (decrease) in cash & cash equivalents
Cash & cash equivalents at beginning of period
Cash & cash equivalents at end of period
Interest paid
Income taxes paid
643,999
201,890
845,889
9,041
257
Reference (example)
Mergent Online. (2018). Company A Retrieved January 21, 2018 from: (link to financial statement here)
Company A Name & Stock Symbol
Exchange rate used is that of the Year End reported date
As Reported Annual Cash Flow
Report Date
Currency
Audit Status
12/31/2016
USD
Not Qualified
Consolidated
Yes
Scale
Thousands
Net income (loss)
-294,040
Depreciation & amortization
231,931
Stock-based compensation
156,496
Amortization of discount on convertible debt
69,734
Inventory write-downs
15,609
Write-off of Department of Energy (DOE) loan origination costs
Change in fair value of DOE warrant liability
Fixed asset disposal
14,178
Other non-cash operating activities
7,471
Foreign currency transaction loss (gain)
-1,891
Account receivables
-183,658
Inventories & operating lease vehicles
-1,050,264
Prepaid expenses & other current assets
-60,637
Other assets
-4,493
Accounts payable
252,781
Accrued liabilities
162,075
Accounts payable & accrued expenses
Deferred revenue
209,681
Customer deposits
106,230
Resale value guarantee
249,492
Other long-term liabilities
61,968
Net cash flows from operating activities
-57,337
Purchases of property & equipment excluding capital leases
-969,885
Withdrawals out of (transfers into) our dedicated Department of Energy account,
– net
Decrease (increase) in restricted cash
-3,849
Purchase of short-term marketable securities
-205,841
Maturities of short-term marketable securities
189,131
Business acquisition
Net cash flows from investing activities
-990,444
Proceeds from issuance of convertible debt
2,300,000
Proceeds from issuance of convertible debt & other debt
Proceeds from issuance of common stock in public
Proceeds from issuance of warrants
389,160
Proceeds from exercise of stock options & other stock issuances
100,455
Proceeds from issuance of common stock in private placements
Principal payments on DOE loans
Purchase of convertible note hedges
-603,428
Common stock & convertible debt issuance costs
-35,149
Principal payments on capital leases & other debt
-11,179
Collateralized lease borrowings
3,271
Net cash flows from financing activities
2,143,130
Effect of exchange rate changes on cash & cash equivalents
-35,525
Net increase (decrease) in cash & cash equivalents
Cash & cash equivalents at beginning of period
Cash & cash equivalents at end of period
Interest paid
Income taxes paid
1,059,824
845,889
1,905,713
20,539
3,120
Reference (example)
Mergent Online. (2018). Company A Retrieved January 21, 2018 from: (link to financial statement here)
Company A Name & Stock Symbol
Exchange rate used is that of the Year End reported date
As Reported Annual Cash Flow
Report Date
Currency
Audit Status
12/31/2017
USD
Not Qualified
Consolidated
Yes
Scale
Thousands
Net income (loss)
-888,663
Depreciation & amortization
422,590
Stock-based compensation
197,999
Amortization of discount on convertible debt
72,063
Inventory write-downs
44,940
Write-off of Department of Energy (DOE) loan origination costs
Change in fair value of DOE warrant liability
Fixed asset disposal
37,723
Other non-cash operating activities
26,373
Foreign currency transaction loss (gain)
55,765
Account receivables
46,267
Inventories & operating lease vehicles
-1,573,860
Prepaid expenses & other current assets
-29,595
Other assets
-24,362
Accounts payable
Accrued liabilities
Accounts payable & accrued expenses
263,345
Deferred revenue
322,203
Customer deposits
36,721
Resale value guarantee
442,295
Other long-term liabilities
23,697
Net cash flows from operating activities
-524,499
Purchases of property & equipment excluding capital leases
-1,634,850
Withdrawals out of (transfers into) our dedicated Department of Energy account,
– net
Decrease (increase) in restricted cash
-26,441
Purchase of short-term marketable securities
Maturities of short-term marketable securities
Business acquisition
-12,260
Net cash flows from investing activities
-1,673,551
Proceeds from issuance of convertible debt
Proceeds from issuance of convertible debt & other debt
318,972
Proceeds from issuance of common stock in public
730,000
Proceeds from issuance of warrants
Proceeds from exercise of stock options & other stock issuances
106,611
Proceeds from issuance of common stock in private placements
20,000
Principal payments on DOE loans
Purchase of convertible note hedges
Common stock & convertible debt issuance costs
-17,025
Principal payments on capital leases & other debt
-203,780
Collaterali…
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