Integrating Accounting for Liabilities and Equity Obtain Apple's 2016 10-K (filed October 26, 2016) either through the "Investor Relations" portion of its website (do a web search for "Apple Investor Relations") or go to www.sec.gov and click "Company Filings Search" under "Filings." Required: Using Apple's 10-K, answer the following questions (Hint: It may be easier to use the Word or PDF file and use the search feature within the program): 1. Calculate Apple's current, quick, and cash ratios for 2015 and 2016. The industry averages for these ratios for 2016 were 1.72, 1.41, and 0.77, respectively. Round your answers to two decimal places. 2016 2015 Current Ratio fill in the blank 1 fill in the blank 2 Quick Ratio fill in the blank 3 fill in the blank 4 Cash Ratio fill in the blank 5 fill in the blank 6 Comment on Apple's short-term liquidity. For 2016, Apple ____?______ the industry average for the cash but is below the industry average for the current and quick ratio. However, because there is little concern about Apple's ability to sell its inventories, the current ratio provides relatively high confidence that Apple _______?_____ be able to meet its short-term obligations.
Integrative Exercise
Integrating Accounting for Liabilities and Equity
Obtain Apple's 2016 10-K (filed October 26, 2016) either through the "Investor Relations" portion of its website (do a web search for "Apple Investor Relations") or go to www.sec.gov and click "Company Filings Search" under "Filings."
Required:
Using Apple's 10-K, answer the following questions (Hint: It may be easier to use the Word or PDF file and use the search feature within the program):
1. Calculate Apple's current, quick, and cash ratios for 2015 and 2016. The industry averages for these ratios for 2016 were 1.72, 1.41, and 0.77, respectively. Round your answers to two decimal places.
| 2016 | 2015 | |
| fill in the blank 1 | fill in the blank 2 | |
| Quick Ratio | fill in the blank 3 | fill in the blank 4 |
| Cash Ratio | fill in the blank 5 | fill in the blank 6 |
Comment on Apple's short-term liquidity.
For 2016, Apple ____?______ the industry average for the cash but is below the industry average for the current and quick ratio. However, because there is little concern about Apple's ability to sell its inventories, the current ratio provides relatively high confidence that Apple _______?_____ be able to meet its short-term obligations.
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