Shown below are Apple Inc’s Consolidated Statements of Operations for years ended September 24, 2022; September 25, 2021 and September 26, 2020; and Consolidated Balance Sheets at September 24, 2022 and September 25, 2021. Determine the following for apple a) return on equity for the year ended September 24,2022b) Acid-test ratio at September 24,2022c) Number of days sales in accounts receivable at September 24, 2022d) Inventory turnover for the year ended September 24,2022,e. With a common stock market price of $150.43 at September 24,2022, the Price Earnings ratio for the year ended September 24, 2022f. Do you consider the PE ratio in part e to be below average, average or above average? Why?g. The debt to equity ratio at September 24, 2022 ## Apple Inc.### CONSOLIDATED BALANCE SHEETS*(In millions, except number of shares which are reflected in thousands and par value)*#### ASSETS:**September 24, 2022** | **September 25, 2021**- **Current assets:** - Cash and cash equivalents: $23,646 | $34,940 - Marketable securities: $24,658 | $27,699 - Accounts receivable, net: $28,184 | $26,278 - Inventories: $4,040 | $6,580 - Vendor non-trade receivables: $32,748 | $26,228 - Other current assets: $21,723 | $14,111 - **Total current assets:** $135,405 | $134,836- **Non-current assets:** - Marketable securities: $120,805 | $127,877 - Property, plant and equipment, net: $42,117 | $39,440 - Other non-current assets: $54,428 | $48,849 - **Total non-current assets:** $217,350 | $216,166 - **Total assets:** $352,755 | $351,002#### LIABILITIES AND SHAREHOLDERS' EQUITY:- **Current liabilities:** - Accounts payable: $64,115 | $54,763 - Other current liabilities: $80,845 | $47,493 - Deferred revenue: $7,912 | $7,812 - Commercial paper: $9,622 | $6,009 - Term debt: $11,488 | $9,403 - **Total current liabilities:** $153,982 | $125,480- **Non-current liabilities:** - Term debt: $98,959 | $109,106 - Other non-current liabilities: $49,142 | $53,325 - **Total non-current liabilities:** $148,101 | $162,431 - **Total liabilities:** $302,083 | $287,912- **Shareholders' equity:** - Common stock and additional paid-in capital (par value: $0.00001 per value; 50,400,000 shares authorized; 16, **Important Financial Metrics Calculation Using Apple Inc.'s Consolidated Financial Statements**The text below illustrates critical financial metrics for Apple Inc. using its Consolidated Statements of Operations and the Consolidated Balance Sheets for the years ending September 24, 2022, September 25, 2021, and September 26, 2020. Below are the analysis and calculations for the given date.1. **Return on Equity (ROE) for the year ended September 24, 2022:** - ROE = Net Income / Shareholder's Equity. - Shareholder’s equity details need to be extracted from the balance sheet data which isn't provided in the image. However, the formula entails dividing the net income by the shareholders' equity for the given period.2. **Acid-Test Ratio at September 24, 2022:** - Acid-Test Ratio = (Current Assets - Inventories) / Current Liabilities. - Specific values for current assets, inventories, and current liabilities are not detailed in the provided segment; refer to the balance sheet for these figures to compute the ratio.3. **Number of Days Sales in Accounts Receivable at September 24, 2022:** - Days Sales Outstanding = (Accounts Receivable / Total Sales) * Number of Days. - Precise accounts receivable numbers are necessary from the balance sheet along with total sales indicated in the income statement.4. **Inventory Turnover for the year ended September 24, 2022:** - Inventory Turnover = Cost of Goods Sold (COGS) / Average Inventory. - The COGS can be found in the income statement, while average inventory values are needed from the balance sheets of the beginning and end of the period.5. **Price Earnings (PE) Ratio at September 24, 2022:** - PE Ratio = Market Value per Share / Earnings Per Share (EPS). - Given: Market price per share = $150.43. - EPS for 2022 (Basic) = $6.15 (from the income statement). - PE Ratio = $150.43 / $6.15 = 24.46.6. **Evaluation of the PE Ratio:** - To determine if the PE ratio is below average, average, or above average, one needs to compare it with industry averages or historical company data. Generally, a PE ratio of 24.

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Current assets: Cash and cash equivalents Marketable securities Accounts receivable, net Inventories Vendor non-trade receivables Other current assets Total current assets Non-current assets: Marketable securities Property, plant and equipment, net Other non-purrent assets Total non-current assets Total assets Current liabilities: Accounts payable Other current liabilities Deferred revenue Commercial paper Term debt Total current liabilities Non-current liabilities: Term debt Other non-current liabilities Total non-current liabilities Total liabilities Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) Commitments and contingencies Accumulated other comprehensive income/(loss) Total shareholders' equity ASSETS: Shareholders' equity. Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,043,425 and 16,420,786 shares issued and outstanding, respectively Retained earnings/(Accumulated deficit) Total liabilities and shareholders' equity LIABILITIES AND SHAREHOLDERS' EQUITY: See accompanying Notes to Consolidated Financial Statements. Apple Inc. | 2022 Form 10-K | 31 S September 24, 2022 23,646 $ 24,658 28,184 4,940 32.748 21.223 135,405 120,805 42,117 54,428 217,350 352,755 S 64,115 S 60,845 7.912 0,992 11,128 153,982 98,959 49,142 148,101 302,083 64,849 (3.068) (11,109) 50,672 352,755 September 25, 2021 34,040 27,699 26,278 6,580 25,228 14,111 134,838 127,877 39,440 48,849 218,168 351,002 54,783 47,493 7,612 6,000 9,613 125,481 109,100 53,325 162,431 287.912 57,365 5,562 163 63,090 351,002

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q