Case C

Below is the company data for Apple Inc, currently being traded on the US markets. The measures are stated om millions of USD currency.

• Cash & marketable securities

• Fixed assets

• Net sales

• Earnings Before Interests and Taxes (EBIT)

• Net Earnings After Taxes (NEAT )

• Quick Ratio ((CA-Inventory)/CL)

• Current Ratio (CA/CL)

• Average Collection Period (ACP)

• Return on Equity (ROE, NEAT/Net Common Equity)

• Tax rate

$165 $286 $1320 $143 

$ 66 2.1 to 1 3.4 to 1 45.60 days 13% 25%

For Apples Liabilities & Equity side, they only report common equity, debt and current operating liabilities. Based on the detailed information above, find the following calculations;

• (1) Accounts Receivables, (2) Current Operating Liabilities, (3) Current Assets, (4) Total Assets, (5) Net Common Equity,and (6) Debt. (10 marks)

• With the increase in online commerce, assume Apple has decreased its ACP by 15.60 days (i.e., totaling 30 days) while holding all other variables constant, how much cash could they generate? (10 marks).

• What is Apples ROIC (post-tax) ? (10 marks)