Chapter 13, Problem 1AA

To determine

Concept Introduction:

Shares: The total capital of the company is divided into small pieces which termed as shares of the company. It is issued by the company to the investors for certain amount of interest of the company.

Requirement 1:

Determine number of Common Stock issued and outstanding of Apple Inc. at (a) September 30, 2017, and (b) September 24, 2016

To determine

Concept Introduction:

Dividends are basically small portions of net income earned by the company which is distributed among the stockholders.

Requirement 2:

Determine the total amount of cash dividends paid to common stockholders for the years ended (a) September 30, 2017, and (b) September 24, 2016?

To determine

Concept Introduction:

Earnings per Share:

The net income of the company available for the common stockholders is called earnings per share. It is computed by dividing the net income during an accounting period by the number of outstanding common stock.

Requirement 3:

Earnings per share amounts for 2017 and 2016

To determine

Concept Introduction:

Earnings per share is considered favorable when it is increasing and unfavorable when it is decreasing. The two major factors which increases or decreases the EPS are; the amount of net income and the number of outstanding shares.

Requirement 4:

Whether the change in EPS from 2016 to 2017 is favorable or unfavorable?

To determine

Concept Introduction:

Outstanding Shares:

The total number of shares which is not reacquired by the company is called outstanding shares. Outstanding shares are computed by deducting number of treasury stock from the total number of issued shares. The number of outstanding is used as denominator to compute the EPS.

Requirement 5

Increase or decrease in EPS if Apple buys back number of outstanding shares from investors?