Chapter 6, Problem 1BTN

To determine

1.

Introduction: Each company is required to file its annual report that contains its financial statements and other information which are material for the owners of the company and other stakeholders to know.

To State: The amount of inventories reported by Apple in its financial statements on September 26, 2015 and on September 27, 2014.

To determine

2.

Introduction: Each company is required to file its annual report that contains its financial statements and other information which are material for the owners of the company and other stakeholders to know.

To calculate: Percentage of inventory on total assets held by the company on September 26, 2015 and September 27, 2014.

To determine

3.

Introduction: Each company is required to file its annual report that contains its financial statements and other information which are material for the owners of the company and other stakeholders to know.

To State: The relative size of inventory with total assets and comment on the figures reported by Apple in its financial statements on September 26, 2015 and on September 27, 2014.

To determine

4.

Introduction: Each company is required to file its annual report that contains its financial statements and other information which are material for the owners of the company and other stakeholders to know.

To State: The method of accounting chosen by Apple to compute value of inventory in its balance sheet.

To determine

5.

Introduction: Each company is required to file its annual report that contains its financial statements and other information which are material for the owners of the company and other stakeholders to know.

To calculate: Inventory turnover of the company and days sale in inventory on September 26, 2015.