1. Apple Inc.

INCOME STATEMENT
 (Figures in $ millions)
 Net sales: $260,000
 Cost of goods sold: $153,600
 Other expenses: $74,000
 Depreciation: $12,000
 Earnings before interest and taxes (EBIT): $20,400
 Interest expense: $3,600
 Income before tax: $16,800
 Taxes (at 21%): $3,528
 Net income: $13,272
 Dividends: $5,000

BALANCE SHEET
 (Figures in $ millions)

	End of Year	Start of Year
Assets
Cash and marketable securities	$50,000	$48,500
Receivables	$20,000	$19,500
Inventories	$6,500	$6,000
Other current assets	$10,500	$10,000
Total current assets	$87,000	$84,000
Net property, plant, and equipment	$92,000	$90,000
Other long-term assets	$45,000	$44,000
Total assets	$224,000	$218,000
Liabilities and shareholders’ equity
Payables	$30,000	$28,500
Short-term debt	$10,000	$9,500
Other current liabilities	$12,000	$11,500
Total current liabilities	$52,000	$49,500
Long-term debt and leases	$60,000	$62,000
Other long-term liabilities	$40,000	$38,500
Shareholders’ equity	$72,000	$68,000
Total liabilities and shareholders’ equity	$224,000	$218,000

Calculate the following financial ratios for Apple Inc.: a. Return on equity (use average balance sheet figures)% b. Return on assets (use average balance sheet figures)% c. Return on capital (use average balance sheet figures)______% d. Days in inventory (use start-of-year balance sheet figures)____days e. Inventory turnover (use start-of-year balance sheet figures) f. Average collection period (use start-of-year balance sheet figures)____days g. Operating profit margin ____% h. Long-term debt ratio (use end-of-year balance sheet figures) i. Total debt ratio (use end-of-year balance sheet figures) j. Times interest earned k. Cash coverage ratio l. Current ratio (use end-of-year balance sheet figures) m. Quick ratio (use end-of-year balance sheet figures)