Chapter 6, Problem 5BTN

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 products manufactured by Apple.

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

To determine

3.

Introduction: Gross Margin refers to the profit percentage earned by the business on its core business i.e., to say it does not account for administrative expenses it just considers product revenues and product costs.

To calculate: Gross Margin and gross margin ratio for 2015 and comment on it.

To determine

4.

Introduction: Inventory turnover ratio determines how many times the inventory of the company get rotates within a year under consideration. Days sale in inventory further states

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