The following income statement data (in millions) for Dell Computer CorporationandApple
Computer Inc.were taken from their recent annual reports:92 Chapter 2 Basic Accounting Concepts
Case 2-3
Vertical analysisCase 2-4
Financial informationDecember 31, 2004 December 31, 2003
Assets:
Cash $ 3,204 $ 4,633
Receivables 7,260 6,430
Inventories 4,247 5,338
Property, plant, and equipment 8,443 8,432
Intangible assets and goodwill 2,903 2,948
Prepaid pension cost 12,588 8,542
Investments 13,754 12,951
Other assets 1,564 3,761
TOTAL ASSETS $53,963 $53,035Stockholders’ Equity: Capital Stock and Dividends
Accounts payable $17,989 $17,304
Notes payable 12,200 14,443
Other liabilities 12,488 13,149
Total liabilities $42,677 $44,896
Stockholders’ equity 11,286 8,139
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $53,963 $53,035Dell Apple
Net sales $49,205 $8,279
Cost of goods sold 40,190 6,020
Gross profit $ 9,015 $2,259
Operating expenses 4,761 1,933
Operating income (loss) $ 4,254 $ 326- Prepare a vertical analysis of the income statement for Dell. Round to one decimal place.
- Prepare a vertical analysis of the income statement for Apple. Round to one decimal
place. - Based upon (1) and (2), how does Dell compare to Apple?
Yahoo.com’s finance Internet site provides summary financial information about public companies,
such as stock quotes, recent financial filings with the Securities and Exchange Commission,
and recent news stories. Go to Yahoo.com’s financial Web site (http://finance.yahoo.com/) and
enterWm. Wrigley Jr. Company’s stock symbol, WWY. Answer the following questions
concerning Wm. Wrigley Jr. Company by clicking on the various items under the tab “More on
WWY.”- At what price did Wrigley’s stock last trade?
- What is the 52-week range of Wrigley’s stock?
- When was the last time Wrigley’s stock hit a 52-week high?
- Over the last six months, has there been any insider selling or buying of Wrigley’s stock?
- Who is the president of Wm. Wrigley Jr. Company, and how old is the president?