Question

Select one (1) U.S. publicly traded company and review its most recent Annual Report. (You may use one (1) of the three (3) companies you selected for your Stock Journal assignment.)

Use the Income Statement and Balance Sheet to determine the changes in:

• assets, liabilities, and equity

• total revenue and net income

Briefly describe the change from the current and prior years in each of these key areas and determine if the changes would be positive or negative from an investor / stockholder's view.

Answer 1

I am choosing Apple Inc. Its financial statements are available for september 2017 and 2016.

1. Changes in Total Assets- In 2017, total assets are $375319000 that has increased from previous year ($321686000).
2. Changes in Total Liabilities- In 2017, total liabilities are $241272000 that has increased from previous year ($193437000)
3. Changes in Equity- Total equity is $134047000 in 2017 that has increased from 2016 ($128249000) because of increase in common stocks and retained earnings.
4. Change in Total Revenue- Apple Inc.'s total revenue in 2017 is $229234000 that has increased as compare to previous year ($215639000).
5. Change in Net Income- Its net income for the year 2017 is $48351000 that has increased from previous year ($45687000).

Conclusion- All the above changes are positive changes, everything is increasing in 2017 as compare to 2016 but increase in liability is not good as it brings more obligation.