Refer to Apple’s financial statements in Appendix A to answer the following.

Required

1. Assume that the amounts reported for inventories and cost of sales reflect items purchased in a form ready for resale. Compute the net cost of goods purchased for the year ended September 29, 2018.

2. Compute the current ratio and acid-test ratio as of September 29, 2018, and September 30, 2017. Note: Do not include vendor non-trade receivables with quick assets.

3. Does Apple’s 2018 current ratio outperform or underperform the (assumed) industry average of 1.5?

4. Does Apple’s 2018 acid-test ratio outperform or underperform the (assumed) industry average of 1.0?