• Calculate the Net Income for Apple Inc. based on the following information:
  • Gross Sales: $100,000,000
  • Sales Returns and Allowances: $2,000,000
  • Cost of Goods Sold: $40,000,000
  • Operating Expenses: $20,000,000
  • Interest Expense: $5,000,000
  • Income Tax Rate: 25%

• Requirement 2: Prepare a vertical analysis of Apple Inc.'s income statement, showing each expense item as a percentage of net sales.
• Requirement 3: Calculate the Return on Assets (ROA) for Apple Inc. using the formula: ROA = Net Income / Total Assets.
• Requirement 4: Prepare a comparative balance sheet for Apple Inc. for the years 2022 and 2023, highlighting changes in key asset and liability categories.
• Requirement 5: Discuss how the revenue recognition principle applies to Apple Inc.'s financial statements.