In: Accounting
Common-Sized Balance Sheets
The following end-of-the-year balance sheets (in millions) were adapted from recent financial statements of Apple (AAPL).
Year 1 | Year 2 | |||||
Current assets: | ||||||
Cash | $13,844 | $21,120 | ||||
Marketable securities | 11,233 | 20,481 | ||||
Accounts receivable | 27,219 | 30,343 | ||||
Inventory | 2,111 | 2,349 | ||||
Other | 14,124 | 15,085 | ||||
Total current assets | $68,531 | $89,378 | ||||
Long-term assets: | ||||||
Long-term marketable securities | $130,162 | $164,065 | ||||
Property, plant, and equipment | 20,624 | 22,471 | ||||
Other long-term assets | 12,522 | 14,565 | ||||
Total long-term assets | $163,308 | $201,101 | ||||
Total assets | $231,839 | $290,479 | ||||
Current liabilities: | ||||||
Accounts payable and similar liabilities | $48,649 | $60,671 | ||||
Current portion of long-term debt | 0 | 2,500 | ||||
Other | 14,799 | 17,439 | ||||
Total current liabilities | $63,448 | $80,610 | ||||
Long-term liabilities | 56,844 | 90,514 | ||||
Total liabilities | $120,292 | $171,124 | ||||
Stockholders' equity | ||||||
Common stock | $23,313 | $27,416 | ||||
Retained earnings | 87,152 | 92,284 | ||||
Other items | 1,082 | (345) | ||||
Total stockholders' equity | $111,547 | $119,355 | ||||
Total liabilities and stockholders' equity | $231,839 | $290,479 |
1. Prepare common-sized balance sheets for Apple for Years 1 and 2. Round your percentage answers to one decimal place. If an amount is zero, enter "0". (Note: Due to rounding, amounts may not total 100%.)
Apple | |||
Common-Sized Balance Sheet | |||
For Years 1 and 2 | |||
Year 1 | Year 2 | Increase (Decrease) | |
Current assets: | |||
Cash | % | % | % |
Marketable securities | |||
Accounts receivable | |||
Inventory | |||
Other | |||
Total current assets | % | % | % |
Long-term assets: | |||
Long-term marketable securities | % | % | % |
Property, plant and equipment | |||
Other long-term assets | |||
Total long-term assets | % | % | % |
Total assets | % | % | % |
Current liabilities: | |||
Accounts payable and similar liabilities | % | % | % |
Current portion of long-term debt | |||
Other | |||
Total current liabilities | % | % | % |
Long-term liabilities | |||
Total liabilities | % | % | % |
Stockholders' Equity | |||
Common stock | % | % | % |
Retained earnings | |||
Other items | |||
Total stockholders' equity | % | % | % |
Total liabilities and stockholders' equity | % | % | % |
2. A comparison of liabilities for Years 1 and 2 indicates a(n) in both current and long-term liabilities as a percent of total liabilities plus stockholders' equity. Total liabilities have by % relative to total liabilities plus stockholders' equity. A corresponding occurred in .