Case 3-24 Analysis of liquidity and profitability measures of Apple Inc. [LO 3, 4, 6, 7]

The following summarized data (amounts in millions) are taken from the September 27, 2014, and September 28, 2013,comparative financial statements of Apple Inc., a manufacturer of mobile communication and media devices, personal computers, portable digital music players, and seller of a variety of related software, services, accessories, networking solutions, and third-party digital content and applications:

(Amounts Expressed in Millions)
For the Fiscal Years Ended September 27 and September 28, respectively:	2014	2013
Net sales	$	182,795	$	170,910
Costs of sales		112,258		106,606
Operating income		52,503		48,999
Net income	$	39,510	$	37,037
At Year End: Assets
Current assets:
Cash and cash equivalents	$	13,844	$	14,259
Short-term marketable securities		11,233		26,287
Accounts receivable, less allowance of $84 and $99, respectively		17,460		13,102
Inventories		2,111		1,764
Deferred tax assets		4,318		3,453
Vendor nontrade receivables		9,759		7,539
Other current assets		9,806		6,882
Total current assets		68,531		73,286
Long-term marketable securities		130,162		106,215
Property, plant, and equipment, net		20,624		16,597
Goodwill		4,616		1,577
Acquired intangible assets, net		4,142		4,179
Other assets		3,764		5,146
Total assets	$	231,839	$	207,000
Liabilities and Shareholders Equity
Current liabilities:
Accounts payable	$	30,196	$	22,367
Accrued expenses		18,453		13,856
Deferred revenue		8,491		7,435
Commercial paper		6,308		0
Total current liabilities		63,448		43,658
Deferred revenuenoncurrent		3,031		2,625
Long-term debt		28,987		16,960
Other noncurrent liabilities		24,826		20,208
Total liabilities		120,292		83,451
Shareholders Equity:
Common stock and additional paid-in capital, $0.00001 par value, 12,600,000 shares authorized; 929,277 and 915,970 shares issued and outstanding, respectively		23,313		19,764
Retained earnings		87,152		104,256
Accumulated other comprehensive income (loss)		1,082		(471	)
Total shareholders equity		111,547		123,549
Total liabilities and shareholders equity	$	231,839	$	207,000

At September 29, 2012, total assets were $176,064 and total shareholders equity was $118,210.

Required:

a.Calculate Apple Inc.s working capital, current ratio, and acid-test ratio at September 27, 2014, and September 28, 2013.(Round your ratio answers to 1 decimal place. Enter "Working capital" in million of dollars.)

b.Calculate Apples ROE for the years ended September 27, 2014, and September 28, 2013.(Round your answers to 1 decimal place.)

c.Calculate Apples ROI, showing margin and turnover, for the years ended September 27, 2014, and September 28, 2013.(Round "Turnover" answers to 2 decimal places.Round your percentage answersto 1 decimal place.)