he following summarized data (amounts in millions) are taken from the September 30, 2017, and September 24, 2016, comparative financial statements of Apple Inc., 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 30 and September 24, respectively: 2017 2016 Net sales $ 229,234 $ 215,639 Costs of sales 114,048 131,376 Operating income 61,344 60,024 Net income $ 48,351 $ 45,687 At Year End: Assets Current assets: Cash and cash equivalents $ 20,289 $ 20,484 Short-term marketable securities 53,892 46,671 Accounts receivable, less allowance of $58 and $53, respectively 17,874 15,754 Inventories 4,855 2,132 Vendor nontrade receivables 17,799 13,545 Other current assets 13,936 8,283 Total current assets 128,645 106,869 Long-term marketable securities 194,714 170,430 Property, plant, and equipment, net 33,783 27,010 Goodwill 5,717 5,414 Acquired intangible assets, net 2,298 3,206 Other assets 10,162 8,757 Total assets $ 375,319 $ 321,686 Liabilities and Shareholders’ Equity Current liabilities: Accounts payable $ 49,049 $ 37,294 Accrued expenses 25,744 22,027 Deferred revenue 7,548 8,080 Commercial paper 11,977 8,105 Current portion of long-term debt 6,496 3,500 Total current liabilities 100,814 79,006 Deferred revenue—noncurrent 2,836 2,930 Long-term debt 97,207 75,427 Other noncurrent liabilities 40,415 36,074 Total liabilities 241,272 193,437 Shareholders’ Equity: Common stock and additional paid-in capital, $0.00001 par value, 12,600,000 shares authorized; 5,126,201 and 5,336,166 shares issued and outstanding, respectively 35,867 31,251 Retained earnings 98,330 96,364 Accumulated other comprehensive income (loss) (150 ) 634 Total shareholders’ equity 134,047 128,249 Total liabilities and shareholders’ equity $ 375,319 $ 321,686 At September 26, 2015, total assets were $290,345 and total shareholders’ equity was $119,355. Required: A. Calculate Apple Inc.’s working capital, current ratio, and acid-test ratio at September 30, 2017, and September 24, 2016. B. Calculate Apple’s ROE for the years ended September 30, 2017, and September 24, 2016. C. Calculate Apple’s ROI, showing margin and turnover, for the years ended September 30, 2017, and September 24, 2016.

he following summarized data (amounts in millions) are taken from the September 30, 2017, and September 24, 2016, comparative financial statements of Apple Inc., 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 30 and September 24, respectively: 2017 2016 Net sales $ 229,234 $ 215,639 Costs of sales 114,048 131,376 Operating income 61,344 60,024 Net income $ 48,351 $ 45,687 At Year End: Assets Current assets: Cash and cash equivalents $ 20,289 $ 20,484 Short-term marketable securities 53,892 46,671 Accounts receivable, less allowance of $58 and $53, respectively 17,874 15,754 Inventories 4,855 2,132 Vendor nontrade receivables 17,799 13,545 Other current assets 13,936 8,283 Total current assets 128,645 106,869 Long-term marketable securities 194,714 170,430 Property, plant, and equipment, net 33,783 27,010 Goodwill 5,717 5,414 Acquired intangible assets, net 2,298 3,206 Other assets 10,162 8,757 Total assets $ 375,319 $ 321,686 Liabilities and Shareholders’ Equity Current liabilities: Accounts payable $ 49,049 $ 37,294 Accrued expenses 25,744 22,027 Deferred revenue 7,548 8,080 Commercial paper 11,977 8,105 Current portion of long-term debt 6,496 3,500 Total current liabilities 100,814 79,006 Deferred revenue—noncurrent 2,836 2,930 Long-term debt 97,207 75,427 Other noncurrent liabilities 40,415 36,074 Total liabilities 241,272 193,437 Shareholders’ Equity: Common stock and additional paid-in capital, $0.00001 par value, 12,600,000 shares authorized; 5,126,201 and 5,336,166 shares issued and outstanding, respectively 35,867 31,251 Retained earnings 98,330 96,364 Accumulated other comprehensive income (loss) (150 ) 634 Total shareholders’ equity 134,047 128,249 Total liabilities and shareholders’ equity $ 375,319 $ 321,686 At September 26, 2015, total assets were $290,345 and total shareholders’ equity was $119,355. Required: A. Calculate Apple Inc.’s working capital, current ratio, and acid-test ratio at September 30, 2017, and September 24, 2016. B. Calculate Apple’s ROE for the years ended September 30, 2017, and September 24, 2016. C. Calculate Apple’s ROI, showing margin and turnover, for the years ended September 30, 2017, and September 24, 2016.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Case 3-24 (Static) Analysis of liquidity and profitability measures of Apple Inc. LO 3, 4, 6, 7

The following summarized data (amounts in millions) are taken from the September 30, 2017, and September 24, 2016, comparative financial statements of Apple Inc., 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 30 and September 24, respectively:	2017	2016
Net sales	$	229,234	$	215,639
Costs of sales		114,048		131,376
Operating income		61,344		60,024
Net income	$	48,351	$	45,687
At Year End: Assets
Current assets:
Cash and cash equivalents	$	20,289	$	20,484
Short-term marketable securities		53,892		46,671
Accounts receivable, less allowance of $58 and $53, respectively		17,874		15,754
Inventories		4,855		2,132
Vendor nontrade receivables		17,799		13,545
Other current assets		13,936		8,283
Total current assets		128,645		106,869
Long-term marketable securities		194,714		170,430
Property, plant, and equipment, net		33,783		27,010
Goodwill		5,717		5,414
Acquired intangible assets, net		2,298		3,206
Other assets		10,162		8,757
Total assets	$	375,319	$	321,686
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	49,049	$	37,294
Accrued expenses		25,744		22,027
Deferred revenue		7,548		8,080
Commercial paper		11,977		8,105
Current portion of long-term debt		6,496		3,500
Total current liabilities		100,814		79,006
Deferred revenue—noncurrent		2,836		2,930
Long-term debt		97,207		75,427
Other noncurrent liabilities		40,415		36,074
Total liabilities		241,272		193,437
Shareholders’ Equity:
Common stock and additional paid-in capital, $0.00001 par value, 12,600,000 shares authorized; 5,126,201 and 5,336,166 shares issued and outstanding, respectively		35,867		31,251
Retained earnings		98,330		96,364
Accumulated other comprehensive income (loss)		(150	)	634
Total shareholders’ equity		134,047		128,249
Total liabilities and shareholders’ equity	$	375,319	$	321,686

At September 26, 2015, total assets were $290,345 and total shareholders’ equity was $119,355.

Required:

A. Calculate Apple Inc.’s working capital, current ratio, and acid-test ratio at September 30, 2017, and September 24, 2016.

B. Calculate Apple’s ROE for the years ended September 30, 2017, and September 24, 2016.

C. Calculate Apple’s ROI, showing margin and turnover, for the years ended September 30, 2017, and September 24, 2016.

I NEED ALL PARTS A B AND C THANK YOU!

Complete this question by entering your answers in the tabs below.
Required A
Required B
Required C
Calculate Apple Inc.'s working capital, current ratio, and acid-test ratio at September 30, 2017, and September 24, 2016.
(Round your ratio answers to 1 decimal place. Enter "Working capital" in million of dollars.)
2017
2016
Working capital
Current ratio
Acid-test ratio

Required A
Required B
Required C
Calculate Apple's ROI, showing margin and turnover, for the years ended September 30, 2017, and September 24, 2016.
(Round "Turnover" answers to 2 decimal places. Round your percentage answers to 1 decimal place.)
2017
2016
ROI
%
Margin
%
%
Turnover

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