Apple Bonus

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School

Pennsylvania State University *

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211

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Finance

Date

Jan 9, 2024

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docx

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2

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Group Project: Apple Inc. Bonus Assignment Group member(s): This may be completed individually or as a group for bonus points. Refer to Apple’s 2019 financial statements and answer the following questions. 1. For each year from 2015 to 2019, what are the amounts of: a. net sales b. net income 2015 2016 2017 2018 2019 Net Sales $229,234 $265,595 $260,174 Net Income $48,351 $59,531 $55,256 What trend do you see from these results? What do you foresee happening in 2020 and beyond based on these results? The net sales and net income were increasing until 2018 there was a decrease so in 2020, there could be another decrease due to COVID and other issues or could increase. 2. Compute for 2019 and 2018 the: a. debt to assets ratio 2019: / 338,516 2018: / 365,725 b. times interest earned (See Note 4 for interest expense.) What do these ratios mean? 3. Total assets at September 30, 2017, were $375,319 million and total stockholders’ equity at September 30, 2017, was $134,047 million. Compute for 2019 and 2018
the: a. profit margin b. asset turnover c. return on assets d. return on common stockholders’ equity How would you evaluate Apple’s profitability?
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