Apple, Inc.

Consolidated Balance Sheets

$($In millions, except number of shares which are reflected in thousands and par value$)$

September $28,2019$ September $29,2018$ Select data from $2017$

Current assets

Cash and cash equivalents $$48,844$ $$25,913$

Marketable securities $51,71340,388$

Accounts receivable, net $22,92623,18617,874$

Inventory $4,1063,9564,855$

Vendor non$-$trade receivables $22,87825,809$

Other current assets $12,35212,087$

Total current assets $162,819131,339$

Non$-$current assets

Marketable securities $105,341170,799$

Property, plant and equipment, net $37,37841,304$

Other non$-$current assets $32,97822,283$

Total non$-$current assets $175,697234,386$

Total assets $$338,516$ $$365,725$ $$375,319$

Current liabilities

Accounts payable $$46,236$ $$55,888$

Other current liabilities $37,72033,327$

Deferred revenue $5,5225,966$

Commercial paper $5,98011,964$

Term debt $10,2608,784$

Total current liabilities $105,718115,929$

Non$-$current liabilities

Term debt $91,80793,735$

Other non$-$current liabilities $50,50348,914$

Total non$-$current liabilities $142,310142,649$

Total liabilities $248,028258,578$

Shareholders' equity

Common stock and additional paid$-$in capital, $$0\mathrm{.}00001$ par value: $12,600,000$ shares authorized; $4,443,236$ and $4,754,986$ shares issued and outstanding, respectively $45,17440,201$

Retained earnings $45,89870,400$

Accumulated other comprehensive income $($loss$)(584)(3,454)$

Total shareholders' equity $90,488107,147$

Total liabilities and shareholders' equity $$338,516$ $$365,725$

Apple, Inc.

Consolidated Statements of Operations

$($In millions, except per share amounts$)$

Years ended September $28,2019$ September $29,2018$ September $30,2017$

Net sales $260,174265,595229,234$

Cost of sales $161,782163,756141,048$

Gross margin $98,392101,83988,186$

Operating expenses:

Research and development $16,21714,23611,581$

Selling, general and administrative $18,24516,70515,261$

Total operating expenses $34,46230,94126,842$

Operating income $63,93070,89861,344$

Other income $($expense$),$ net $1,8072,0052,745$

Income before provision for income taxes $65,73772,90364,089$

Provision for income taxes $10,48113,37215,738$

Net income $$55,256$ $$59,53148,351$

Weighted$-$average common shares outstanding $($used to find EPS$)$:

Basic number of shares $4,617\mathrm{.}834$

Market value $($price$)$ per share $($to find PE ratio$)$:

Market price per share on Sept. $30,2019$ $$293\mathrm{.}65$ Ch$.1$

Calculate the return on assets $($ROA$)$ in $2019$ for each company. Use formulas with cell references.

Select the company with the highest return on assets, and fill in $($see paint can icon above$)$ the cell with yellow. $($Select one cell as a team $--$ choose Apple, Google, or Samsung.$)$

Ch$.1$

Assume that an ROA of $8\%$ is the industry average for these companies. Is the $2019$ return on assets for each company better or worse than the industry average? Enter "Better" or "Worse" for each company.

Ch$.2$

Calculate the debt ratio for each company in $2019$ and $2018.$ Use formulas with cell references.

Ch$.2$

Did your company's financial leverage increase or decrease from $2018$ to $2019?$ Enter "Increase" or "Decrease" in the $2019$ column for each company.

Ch$.2$

Looking at the $2019$ debt ratio, is your company a more risky or less risky investment than the two competitiors? $($Hint: If your company is Apple, then decide if Apple a more or less risky investment than Google and Samsung.$)$ In the $2019$ column for your company, write a short statement like, "Company A is a more risky investment than Company B but less risky than Company C$."$

Ch$.3$

Calculate the profit margin for each company in $2019$ and $2018.$ Use formulas with cell references.

For $2019$ and $2018,$ select the company with the highest profit margin and fill in the cells with yellow. $($Select two cells as a team $--$ for each year choose Apple, Google, or Samsung.$)$

Ch$.3$

Calculate the current ratio for each company in $2019$ and $2018.$ Use formulas with cell references.

For $2019$ and $2018,$ select the company that has the best ability to pay short$-$term obligations based on the current ratio and fill in the cells with yellow. $($Select two cells as a team $--$ for each year choose Apple, Google, or Samsung.$)$

Ch$.4$

Calculate the gross margin ratio for each company in $2019$ and $2018.$ Use formulas with cell references.

For $2019$ and $2018,$ select the company that earns more in gross margin for each dollar of net sales and fill in the cells with yellow. $($Select two cells as a team $--$ for each year choose Apple, Google, or Samsung.$)$

Ch$.4$

For $2019$ and $2018,$ did your company's gross margin ratio underperform or outperform the $35\%$ industry average? Enter "underperform" or "outperform" for each company for each year.