Case 3-26 (Static) Analysis of liquidity and profitability measures of Apple Incorporated LO 3-3, 3-4, 3-6, 3-7 The following summarized data (amounts in millions) are taken from the September 26, 2020, and September 28, 2019, comparative financial statements of Apple Incorporated, a company that designs, manufactures, and markets mobile communication and media devices and personal computers; sells a variety of related software, services, accessories, networking solutions, and offers third-party digital content and applications: (Amounts Expressed in Millions) For the Fiscal Years Ended September 26 and September 28, respectively: Net sales Costs of sales Operating income. Net income At Year-End: Assets Current assets: Cash and cash equivalents Short-term marketable securities Accounts receivable, net Inventories Vendor non-trade receivables Other current assets Total current assets Loca Noncurrent assets: Long-term marketable securities Property, plant, and equipment, net Other noncurrent assets Total noncurrent assets Total assets Liabilities and Shareholders' Equity Current liabilities: Accounts payable Other current liabilities Deferred revenue Commercial paper Current portion of term debt Total current liabilities 2020 $ 274,515 169,559 66,288 $ 57,411 $ 38,016 52,927 16,120 4,061 21,325 11,264 143,713 100,887 36,766 42,522 $ 180,175 $ 323,888 $ 42,296 42,684 6,643 4,996 8,773 105,392 2019 $ 260,174 161,782 63,930 $ 55,256 $ 48,844 51,713 22,926 4,106 22,878 12,352 162,819 105,341 37,378 32,978 $ 175,697 $ 338,516 $ 46,236 37,720 5,522 5,980 10,260 105,718
Case 3-26 (Static) Analysis of liquidity and profitability measures of Apple Incorporated LO 3-3, 3-4, 3-6, 3-7 The following summarized data (amounts in millions) are taken from the September 26, 2020, and September 28, 2019, comparative financial statements of Apple Incorporated, a company that designs, manufactures, and markets mobile communication and media devices and personal computers; sells a variety of related software, services, accessories, networking solutions, and offers third-party digital content and applications: (Amounts Expressed in Millions) For the Fiscal Years Ended September 26 and September 28, respectively: Net sales Costs of sales Operating income. Net income At Year-End: Assets Current assets: Cash and cash equivalents Short-term marketable securities Accounts receivable, net Inventories Vendor non-trade receivables Other current assets Total current assets Loca Noncurrent assets: Long-term marketable securities Property, plant, and equipment, net Other noncurrent assets Total noncurrent assets Total assets Liabilities and Shareholders' Equity Current liabilities: Accounts payable Other current liabilities Deferred revenue Commercial paper Current portion of term debt Total current liabilities 2020 $ 274,515 169,559 66,288 $ 57,411 $ 38,016 52,927 16,120 4,061 21,325 11,264 143,713 100,887 36,766 42,522 $ 180,175 $ 323,888 $ 42,296 42,684 6,643 4,996 8,773 105,392 2019 $ 260,174 161,782 63,930 $ 55,256 $ 48,844 51,713 22,926 4,106 22,878 12,352 162,819 105,341 37,378 32,978 $ 175,697 $ 338,516 $ 46,236 37,720 5,522 5,980 10,260 105,718
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Case 3-26 (Static) Analysis of liquidity and profitability measures of Apple Incorporated LO 3-3, 3-4, 3-6,
3-7
The following summarized data (amounts in millions) are taken from the September 26, 2020, and September 28, 2019, comparative
financial statements of Apple Incorporated, a company that designs, manufactures, and markets mobile communication and media
devices and personal computers; sells a variety of related software, services, accessories, networking solutions, and offers third-party
digital content and applications:
(Amounts Expressed in Millions)
For the Fiscal Years Ended September 26 and September 28, respectively:
Net sales
Costs of sales
Operating income.
Net income
At Year-End: Assets
Current assets:
Cash and cash equivalents
Short-term marketable securities
Accounts receivable, net
Inventories
Vendor non-trade receivables
Other current assets
Total current assets
Loca
Noncurrent assets:
Long-term marketable securities
Property, plant, and equipment, net
Other noncurrent assets
Total noncurrent assets
Total assets
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable
Other current liabilities
Deferred revenue
Commercial paper
Current portion of term debt
Total current liabilities
2020
$ 274,515
169,559
66,288
$ 57,411
$ 38,016
52,927
16,120
4,061
21,325
11,264
143,713
100,887
36,766
42,522
$ 180,175
$ 323,888
$ 42,296
42,684
6,643
4,996
8,773
105,392
2019
$ 260,174
161,782
63,930
$ 55,256
$ 48,844
51,713
22,926
4,106
22,878
12,352
162,819
105,341
37,378
32,978
$ 175,697
$ 338,516
$ 46,236
37,720
5,522
5,980
10,260
105,718
Transcribed Image Text:Noncurrent liabilities:
Noncurrent portion of term debt
Other noncurrent liabilities
Total noncurrent liabilities
Total liabilities
Shareholders' equity:
Common stock and additional paid-in capital, $0.00001 par value:
50,400,000 shares authorized; 16,976,763 and 17,772,945 shares
issued and outstanding, respectively
Retained earnings
Accumulated other comprehensive income/(loss)
Total shareholders' equity
Total liabilities and shareholders' equity
98,667
54,490
153,157
258,549
50,779
14,966
(406)
65,339
$ 323,888
At September 29, 2018, total assets were $365,725 and total shareholders' equity was $107,147.
91,807
50,503
142,310
248,028
45,174
45,898
(584)
90,488
$ 338,516
Required:
a. Calculate Apple Incorporated's working capital, current ratio, and acid-test ratio at September 26, 2020, and September 28, 2019.
b. Calculate Apple's ROE for the years ended September 26, 2020, and September 28, 2019.
c. Calculate Apple's ROI, showing margin and turnover, for the years ended September 26, 2020, and September 28, 2019.
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