Apple Inc. is an American multinational technology company that designs, develops, and sells consumer electronics, computer software, and online services. company's hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, and the Apple atch smartwatch. Apple's consumer software includes the macOS and ioS operating systems, the ITunes media player, and the Safari web browser. Its online services include the iTunes Store, Apple Music, and iCloud. Established on April 1, 1976 in Cupertino, California, the company was previously named Apple Computer, Inc., for its first 30 years, but removed the word "Computer" in 2007, to reflect the company's ongoing expansion into the consumer electron addition to its traditional focus on personal computers. Apple is the world's largest information technology company by revenue and the world's second-largest mobile phone manufacturer after Samsung. In August 2018, Apple became the first U.S company to be valued at over US$1 trillion. The company employs 132,000 full-time employees (2018). Apple's worldwide annual revenue totaled $265 billion for the 2018 fiscal year. The company enjoys a high level of brand loyalty and has been repeatedly ranked as the world's most valuable brand. ics market in Answer the following questions from Apple's 2015 Financial Report (found in the Appendix of Wild, Larson & Chiappetta, pages A-2 to A-5, starting on page 703). The purpose of this assignment is to familiarize you with a company's annual report and basic financial statement analysis What were Apple's basic earnings per common share for the fiscal year ended September 26, 2015 1. What was the value of net sales for Apple for the fiscal year ended September 26, 20157 Be precise when giving your answer. 2. Calculate the profit margin ratio for the fiscal years ended September 26.2015 and September 27, 2014 (show calculations). Formula: Net Income/Net Sales--% 3. 2015 2014 4. What was Apple's return on total assets for 2015? Formula: Return on total assets Net income- Avg. Total Assets =--% [Avg. Total Assets = (Beg. Total Assets + End. Total Assets)/2] 5. Calculate days sales in inventory for 2015 (show calculation). Formula: Ending Inventories x365 days Cost of Goods Sold *Note: Cost of Goods Sold is sometimes called "Cost of Sales" 6. Calculate the total asset turnover ratio for 2015 (show calculation). Formula: Net Sales Avg. Total Assets times Calculate the current ratio for 2015 and 2014 (show calculation). Formula: Current Assets/Current Liabilitiestimes 7. 2014 2015 Calculate the acid test ratio for 2015 and 2014 (show calculation). Formula: "Quick" Assets/Current Liabilities 8. times 2014 2015 Calculate the debt-to-equity ratio for Apple for 2015 and 2014 (show calculation) Formula: Total Liabilities 9. Total Stockholders' Equity Note: The higher the ratio, the more debt the company has relative to investments by owners (ie. riskier) 2014 2015 10. What was Apple's return on common stockholders' equity for 2015? Netincome-PreferredDividends (if any) Avg. Stockholders' Equity =--% Formula: Apple Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY Ta millions, escept sumber of shares wich are reflected in thousands) Total Comprehensive Common Stock and Additional Paid-In Capital Retained 499 5 Balances as of September 29, 2012 01289 Net income Oher comprohonsive income oss Dividends and divideed oqaivalents dectaed Repurchase of common stock (970) 22.950 Coon tock inned, net of share 48,873 143) (444) Tas besefe from equity swans, lnclading 123,549 Balances as of September 2H, 2013 104,256 6,294,494 Net income Oher comprchensive incomeo Dividends and dsidend oqulvalents declared Repurchase of commosn stock 1,553 11.215) (45,000) (488677) (45,000) Coos sock issued, net of shares wiheld for employee tases aofer pricing dustmcnn Balances as of September 22, 201 111,347 Ner income Other comprchesive inconeoss Dividen and dividend equivalests declared Repunchase of common stock 1.427) 11527 325002) (36.,026) 3.586 3586 Commin sock issued, netof shares withheld for employer taes Tas beacti rom equily ads,incloding 37,624 alaoces a of Sepeber 26, 2015 See accompanying Notes to Consolidated Financial Stutements Apple Inc CONSOLIDATED BALANCE SHEETS da milions.escept umber of shares which are rneflected in thousands and par valoe) Septomber 27, 20 September 26,2015 Curent a 13,844 11.233 17,460 2111 4318 9,759 9.806 68531 30,162 20,624 21,120 20481 16,849 2.349 5,546 13,494 Cash and cash equivalent o-term marktable securitis Accouns celvable, less allowances of 582 and 586, mspectiveb Defermd tas asses her currt Long-term marktable secit Vendor son-trde roceivles 89378 164,065 22,471 5,116 3,893 Total curress Property,plan and qiment Doodwill Acquired istangible ass, Other assem 4,142 231.839 290,479 Toal aets IABILITIES AND SHAREHOLDERS BQUITY lisbilities 0,196 18,453 8,491 6.308 35,490 Accoonts pyable Accrued espenses 25,181 8940 8,499 2.500 80,610 3624 53,463 3421 Commencial pager 63,448 3031 28,987 24,.82 120,292 Total cunt liahllitie Deferred te-00-c Long-term debt 171,124 Total iabtie Commmeis and contingci Common nock and dditional paid-in capial 50.00ooI par value: 12,600,000 hare horind 5.578 753 d 5.6161 aes issued and ostandingspectively Retained arnings 23.313 87,152 1082 111,547 31839 27416 92,284 345) 119,355 290,479 Tital shareholders' ipity Toalbtes and sarholdersqi Soe accompanying Notes to Consolidaned Pinancial Stasements Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS except nomher of shares which are reflected in thousands and per share amounn la millionm,e September 28,1 September 27, 2014 182,795 Years ended Na sales Cot of sales September 26 201 233,715 140,089 93,626 0537 Giroes margio Operating expenses 6,041 1,993 180s4 Research and developme 8,067 Sellinggeral and adnisiaive 13.305 Ttal uperating espemses Operating income Other income, net 50,153 Income before provision for incoma tae Provision for income taxe Net incom 13,973 99.510 19,121 Eamings per share 6.49 6.45 5,72 5.68 9.28 Shares ned incomputing carnings er 6,477330 652164 164 ,753,421 Dilsed Cah dividends declared per common share 1.82 ee accompaning Notes to Comdd Finncial Statement Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME le million Years ended Nei income Oher conpchevcme ( Septeomber 26,2015 Seplember 27,2014 September 28, 2013 37 037 3,394 9510 Change in foreign currency tramlation,net of tx effect of 5201, S50 S35, respectively 411) 11z Change in malined gansloes on derivative instrun Change in fair valae of dervatives, net of as benetit (espense of 5(4411 5297) and 8:3511, respocsively 2.905 1390 522 Adjoment or losss (ai) realized and incloded in oet income net of tax espense dhenet of $630, 536) and $255, mpectively 3,497) Total change in coised ioss on derivative instruments, net of tax 1.539 64 ange io i on markable socurities Change in air value of makatable securities nes of t heneti epensel of 5264, 5(153) and 5458, espectively (483) 285 791) Adpment for nes (ais) loes alised and incloded io et incoe of tas expese (beneio of 34 571 and 582pectiely 59 Toal changr in unealied pinses on markctable securitis net of ax (424) 427) otal compreheve incom 410635 ee accompanying Nos to Cosolidated Financial Stateme Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS da million 3015 September 27, 20a September 28, 301 10,746 Years ended Cash and cash nquivalents,begiing of the yar 4,259 13 39.510 7 017 Net income 6757 2251 1141 7.946 11.257 3586 1,382 Depreciation and amio Deferred incose tas espense ccounts receivahle n 4.232 76) 2,172 611 0,735 179) 5,400 Vendor non-trade oceivables Other cu and o-cuet ccoupayahle Deled Other cument and non-cue iahilitie 167 5,938 1460 6010 9.713 2340 8.746 81.266 Cash geied by opersting activities Invesing acivities (166.402) 14.538 107,447 343) (11.247) 241) 21712 18810 189301 (3,765) Ph of markable securities Phoconds from maturities of marketable securities Phocoeds om sales of marktable securities mms made in com ction with business acquisitions, net Poment for acquisition of property.plant and equime StI Paymet for quisition of intanghle assets (22579) Cah used in vesting activities 56274 33 77 530 543 749 1,499 011 561) 35,253) 27,114 2.191 730 739 1,158) 11126) 45.000) 11.960 Procends from ce of common stock ce a beneits eqpity wands ases paid nelated to nshare setlement of equity awands Dividends and dividend squivalents pald Repurchase ofcomon stock Proceeds fr ance of em debne Change in commercial aper, net 1082 7 549 Cash sed in acig activities 3513 14259 7,276 21.120 lscmase (docrease) io cash and cash equivaients Cash and cash quivalensend of the year Supplemental cash flow disclos 9,128 13,252 S 10.026 339 S Cash paid for incoe taxes, net Cah paid for eres Nos to Comolidated Financial Statement See