Apple, Inc. manufactures and markets mobile phones, personal computers, and related software. The following data were taken from the company’s 2018 and 2015 annual reports. All dollar amounts are in millions.

Required

a. Calculate the EBIT for each year.

b. Calculate the times-interest-earned ratio for each year.

c. Calculate the current ratio and debt-to-assets ratio for each year.

d. Did the company’s level of financial risk increase or decrease from 2015 to 2018? Explain.

Transcribed Image Text:

Fiscal Years Ending Account Title September 29, 2018 September 26, 2015 $ 131,339 $ 89,378 290,479 Current assets Total assets 365,725 Current liabilities 116,866 80,610 258,578 3,240 13,372 59,531 Total liabilities 171,124 Interest expense Income tax expense 733 19,121 Net income 53,394