Bus 5110 Managerial Accounting - Discussion Forum Unit 7

UNIVERSITY OF THE PEOPLE MASTERS IN BUSINESS ADMINISTRATION (MBA) BUS 5110: MANAGERIAL ACCOUNTING DISCUSSION FORUM UNIT 7 The Trend Analysis DR JACENT GAYLE DECEMBER 20211 | P a g e The trend analysis assists in evaluating an organizations activities over time (Heisinger & Hoyle, n.d). The below tabulated trend examination represents Apple Company income statement together with the balance sheet (Apple Inc Flnencials). Trends Analysis 2019 2018 2017 2016 Total Revenue 120.6 123.17% 106.3 100.0 Gross Profit 116.7 120.86% 104.6 100.0 R&D expenses 161.4 141.72% 115.2 100.0 Net Income 120.9 130.30% 105.8 100.0 Trend analysis shows some fascinating long-term improvements with the Apple strategy: Whereas revenue and net income increased considerably from 2016, they reduced to some extent from 2018 to 2019. This can be made clear by the saturation of the Smartphone market. Apple is very conversant with the risk of drenched revenue and is gradually stepping up investment in research and development. Apple increased its inventory in 2017; however, it has remained the same for the last 3 years. Due to the need to invest in new R&D, Apple has enlarged its liability inclination beyond the trends of asset growth. This results in a nonstop reduction in shareholdings.