ENG111 HW1

Name: Dylan Ler

Student ID: 104172087
1.
All values
in $
Company
1:
Apple
Company
2:
Intel

Cash
Holdings
3,612,000

Long Term
Debt
28,987,000

Equity

Revenue

111,547,00
0

42,123,000

Net
Income
8,467,000

3,143,000

12,103,000

56,073,000

14,554,000

3,317,000

a. It is really difficult to compare the financial health of these two companies

because there is no sufficient information about their Net Working Capital
which is obtained by subtracting the current liabilities from the current assets
of the company. Generally, a positive Net Working Capital is a good sign of a
financially healthy company.
b. We are also unable to obtain some other financial ratios that can determine
the financial performance of the company. Ratios such as the inventory
turnover which tells the companys inventory turnover rate can only be
obtained if we take the Cost of Goods Sold (COGS) and divide it by the
average inventory.
c. By only knowing the amount of cash and net income of the companies above,
it is still hard to say which is financially better off than the other. Some other
values like investments, brand recognition, customer loyalty and user base
can heavily alter the value of the company.

2.
Income Statement
Revenue
Cost of Goods Sold
Operating Income

$1,100
$700
$400

Tax
Interest
Net Income

$122.5
$50
$227.5
Balance Sheet

Current Assets
Cash
Inventory

$250
$200

Total current assets

$450

Fixed Assets
Plant & Equipment

$600

Total fixed assets

$600

Current Liabilities
Accounts Payable
Total current
liabilities
Long Term
Liabilities
Long Term Debt
Total long-term
liabilities
Stockholders
Equity
Owners Equity
Total equity

Total Assets

$1,050

Total liabilities
and stockholders
equity

$150
$150

$400
$400

$500
$500
$1,050