Comparing Income Statements and Balance Sheets of Competitors Following are selected income statement and balance sheet data from two computer competitors, Apple and HP Inc., for the fiscal years ended September 26, 2015, and October 31, 2015, respectively.

Income Statement ($ millions) Apple HP Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $233,715 $103,355 Cost of goods sold. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140,089 78,596 Gross profit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93,626 24,759 Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,232 20,205 Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 53,394 $ 4,554 Balance Sheet ($ millions) Apple HP Current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 89,378 $ 51,787 Long-term assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201,101 55,095 Total assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $290,479 $106,882 Current liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 80,610 $ 42,191 Long-term liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90,514 36,540 Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171,124 78,731 Stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119,355 28,151 Total liabilities and equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $290,479 $106,882

a. Express each income statement amount as a percentage of sales. Comment on any differences observed between the two companies, especially as they relate to their respective business models. (????int:
Apple’s gross profit as a percentage of sales is considerably higher than HP’s. What aspect of Apple’s business do we believe is driving its profitability?)

b. Express each balance sheet amount as a percentage of total assets. Comment on any differences observed between the two companies. Apple has chosen to structure itself with a higher proportion of equity (and a lower proportion of debt) than HP. How does this capital structure decision affect our evaluation of the relative riskiness of these two companies?