• Apple Inc. reported the following financial data for the year:
  • Net Sales: $275 billion
  • Cost of Goods Sold: $120 billion
  • Operating Expenses: $90 billion
  • Income Tax Expense: $25 billion
  • Net Income: $40 billion

• Requirements:
  1. Calculate Apple’s gross profit margin for the year.
  2. Prepare an income statement showing the components of operating expenses.
  3. Analyze the effective tax rate for Apple based on income tax expense and net income.
  4. Discuss the impact of foreign exchange rates on Apple's international operations.
  5. Evaluate the strategic importance of cost control in maintaining Apple’s profitability.