Check Apple's and Google's income statements in Appendix A both show increasing sales and cost of sales. The gross margin ratio can be used to analyze how well companies control costs as sales increase. Required: 1. Compute the gross margin ratio for Apple for each of the fiscal years ended September 30, 2017, and September 24, 2016, 2. Compute the gross margin ratio for Google for each of the fiscal years ended December 31, 2017, and December 31, 2016. 3. Which company (Apple, Google, or neither) improved its control of costs during 2017, as reflected in the gross margin ratio? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the gross margin ratio for Apple for each of the fiscal years ended September 30, 2017, and September 24, 2016. (Round your final answers to 3 decimal places.) es Year Ended Sept. 30, 2017 Year Ended Sept. 24, 2018 Apple grous margin ratio Required 2 > Prev 1 of 2 !!! Next > Apple's and Google's income statements in Appendix A both show increasing sales and cost of sales. The gross margin ratio can be used to analyze how well companies control costs as sales increase. Required: 1. Compute the gross margin ratio for Apple for each of the fiscal years ended September 30, 2017, and September 24, 2016. 2. Compute the gross margin ratio for Google for each of the fiscal years ended December 31, 2017, and December 31, 2016. 3. Which company (Apple, Google, or neither) improved its control of costs during 2017, as reflected in the gross margin ratio? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the grass margin ratio for Google for each of the fiscal years ended December 31, 2017, and December 31, 2016. (Round your final answers to 3 decimal places.) Year Ended Year Ended Dec 31, 2017 Dec 31, 2016 Google gross margin ratio A-2 Appendix A Financial Statement Information September 24, 2016 $ Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 30, 2017 ASSETS Current assets Cash and cash equivalents $ 20,289 Short-term marketable securities 53,892 Accounts receivable, less allowances of $58 and $53, respectively 17,874 Inventories 4,855 Vendor non-trade receivables 17.799 Other current assets 13,936 Total current assets 128,645 Long-term marketable securities 194,714 Property, plant and equipment, net 33,783 Goodwill 5,717 Acquired intangible assets, net 2,298 Other non-current assets 10,162 Total assets 375,319 20,484 46,671 15,754 2,132 13,545 8,283 106,869 170,430 27,010 5,414 3.206 8,757 321,686 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable Accrued expenses Deferred revenue Commercial paper Current portion of long-term debt Total current liabilities Deferred revenue, non-current Long-term debt Other non-current liabilities Total liabilities Commitments and contingencies Shareholders' equity Common stock and additional puid-in capital, 50.00001 par value: 12,600,000 shares authorized: 5.126.201 and 5.336,166 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income (los) Total shareholders equity Total liabilities and shareholders' equity See accompanying Notes to Consolidated Financial Statements 49.049 25.744 7,548 11.977 6,496 100,814 2.836 97.207 40,415 241,272 37.294 22,027 8,080 8,105 3.500 79,006 2,930 75,427 36,074 193,437 I 35.867 98.330 31.251 96,364 (150) 13.047 375 319 128.249 321,68 September 26, 2015 233,715 140,089 93.626 Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) Years ended September 30, 2017 September 24, 2016 Net sales 229.24 $ 215,639 Cost of sala 141.045 131376 Gross margin 88,186 84.263 Operating expenses Research and development 11,581 10,045 Selling, general and administrative 15.161 14.194 Total operating expenses 26,842 24,239 Operating income 61 344 60,024 Other income (expense), et 2,745 1,348 Income before provision for income taxes 64,089 61,372 Provision for income taxes 15,738 15.685 Net income 48,351 45,687 Earnings per share: Basic 9.27 835 Deted 9.21 $ 831 Shares used in computing ning per share 5.217.242 5,470,820 Diluted 5.251,692 5,500,281 Cash dividends declared per share 2.40 $ 2.18 8,067 14,329 22,396 71,230 1.285 72,515 19,121 53,394 $ 9.28 $ $ 5,753,421 5,793,069 $ See accompanying Notes to Consolidated Financial Statements September 26, 2015 S 53394 Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME in millions) Years ended September 20, 2017 September 24, 2016 Net income 48 351 S 45.687 Other comprehensive income doss) Change in foreign currency translation, net of tax effects of 50771.58 and 5201, respectively 2:34 75 Cung in need painossos derivative Instruments Change in fair value of derivatives, set of tax benefit expense) of 48 507) (441), respectively 1.315 Adjustment for meg) losses realized and included in net income et of tax expense benefit of $475, 5131 and 5630, respectively 741) Touldhange in lied gainos o derivative (1621 (734) 2.905 (3497) (592) Change in favor of the securities to be expense of 5425.506) and 5364, respectively 1.582 (483) (461 1.618 979 1434) Total comprehensive income Apple Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In millions, except number of shares which we reflected in thousande) Accumulated Other Commen Steck and Comprehensive Total Additional Paid-In Capital Retained Income Shareholders Shares Amount Farning Equity Balances as of September 27, 2014 5.866,161 $ 23,313 5 87,152 S 1,082 5 111,547 Net income 53,194 53,394 Other comprehensive income (ous) (1,427) (1.427) Dividends and dividend equivalents declared (11,627) (11,627) Repurchase of common stock (325,032) (36,026) (36,026) Share-based compensation 3.586 3,586 Common stock imad, met of shares withheld for employee taxes 37.624 (231) (609) (840) Tax benefit from equity www.ds, including transfer pricing adjustments 748 748 Balances as of September 26, 2015 5,578,753 $ 27,416 5 92,284 5 (345) 119,355 Net income 45.687 45687 Other comprehensive income foss) 979 979 Dividends and dividend equivalents declared (12.188) (12,185) Repurchase of common ock (29,000 (29,000) Share-based compensation 4,262 Common stock issued, set of shares withheld for employees (800) (419) (1,225) Tux benefit from equity wwards, including transfer pricing justments 379 379 Balances as of September 24, 2016 5.136.1665 31.251s 96,364 $ 634 5 128.249 Net 48351 48,351 Other comprehensive income foss) (754) (784) Dividends and dividend equivalent declared (12,803) (12.803) Repurchase of common stock (346.425) (33,001) (33,001) Share-based competi 4,909 4,909 Common stock med et of shares withild for employees 36.531 (913) (581) (1.490 Text beef from awards, including Balances as of September 30, 2017 620 15,67 150 See accoming Notes to Consolidated Financial Statement 37.622 kals - Goc Galtterent Appendix Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS APPL September 30, 2017 20.484 September 24, 2016 September 26, 2015 $ 21,120 $ 13.844 48.351 59,394 10,157 4,840 5,955 (166) 10.505 4.210 4,938 11.257 3,586 1,182 385 Years ended Cash and cash equivalents, beginning of the year Operating activities Netice Adjustments to reconcile net income to cash generated by operating activities Depreciation and amortization Share based compensation expense Deferred income tax expense Other Changes in operating and liabilities: Accounts receivable, net leveres Vendor non-trade receivables Other current and non-current Accuble Deferred revenge Other current and current liabilities Cashewed by operating activities Investing activities Purchases of marketable securities Proceeds from maturities of marketable securities Proceeds from sales of marketable securities Payments made is connection with business squisitions et Payments for acquisition of property, plant and equipment Payments for acquisition of pible assets Payments for regie investments, Other Cashed investing vides (2093) (2.723) (4256) (5.318) 9,618 527 217 (51) 1.085 1,837 (1.554) 2033) 65,824 417 (238) (3.735) (283) 5.001 1,042 9,058 81.266 (154) 63,598 (159.485) 31.775 94.554 (329) (142,428) 21.25 90536 (297) (12,734) (814) (1,388) (110) 145.977) (166,402) 14.53 107,447 (343) (11.247) 014 195 2:30 (46.445) (56,274) 555 Proceeds from ince of common wock ces tax benes from equity wards Pay for a related to the weet of qy awards Pe for dividende und dividendents Repurchases of commod Proceeds from ince of debt, Repayments of term de (1.874 (12.769) 2.00 195 407 (1.570 (12.150) 29.722) 24,954 (2.500 197 543 749 (1.499 (11,561) (35.253 3.500 417 17 (17,716 4 2010 Supplemental cash flow disclosure 11.592 Cipollinen > $ 5 10.444 1316 514 Seeing Notes to Calaments Check Apple's and Google's income statements in Appendix A both show increasing sales and cost of sales. The gross margin ratio can be used to analyze how well companies control costs as sales increase. Required: 1. Compute the gross margin ratio for Apple for each of the fiscal years ended September 30, 2017, and September 24, 2016, 2. Compute the gross margin ratio for Google for each of the fiscal years ended December 31, 2017, and December 31, 2016. 3. Which company (Apple, Google, or neither) improved its control of costs during 2017, as reflected in the gross margin ratio? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the gross margin ratio for Apple for each of the fiscal years ended September 30, 2017, and September 24, 2016. (Round your final answers to 3 decimal places.) es Year Ended Sept. 30, 2017 Year Ended Sept. 24, 2018 Apple grous margin ratio Required 2 > Prev 1 of 2 !!! Next > Apple's and Google's income statements in Appendix A both show increasing sales and cost of sales. The gross margin ratio can be used to analyze how well companies control costs as sales increase. Required: 1. Compute the gross margin ratio for Apple for each of the fiscal years ended September 30, 2017, and September 24, 2016. 2. Compute the gross margin ratio for Google for each of the fiscal years ended December 31, 2017, and December 31, 2016. 3. Which company (Apple, Google, or neither) improved its control of costs during 2017, as reflected in the gross margin ratio? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the grass margin ratio for Google for each of the fiscal years ended December 31, 2017, and December 31, 2016. (Round your final answers to 3 decimal places.) Year Ended Year Ended Dec 31, 2017 Dec 31, 2016 Google gross margin ratio A-2 Appendix A Financial Statement Information September 24, 2016 $ Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 30, 2017 ASSETS Current assets Cash and cash equivalents $ 20,289 Short-term marketable securities 53,892 Accounts receivable, less allowances of $58 and $53, respectively 17,874 Inventories 4,855 Vendor non-trade receivables 17.799 Other current assets 13,936 Total current assets 128,645 Long-term marketable securities 194,714 Property, plant and equipment, net 33,783 Goodwill 5,717 Acquired intangible assets, net 2,298 Other non-current assets 10,162 Total assets 375,319 20,484 46,671 15,754 2,132 13,545 8,283 106,869 170,430 27,010 5,414 3.206 8,757 321,686 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable Accrued expenses Deferred revenue Commercial paper Current portion of long-term debt Total current liabilities Deferred revenue, non-current Long-term debt Other non-current liabilities Total liabilities Commitments and contingencies Shareholders' equity Common stock and additional puid-in capital, 50.00001 par value: 12,600,000 shares authorized: 5.126.201 and 5.336,166 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income (los) Total shareholders equity Total liabilities and shareholders' equity See accompanying Notes to Consolidated Financial Statements 49.049 25.744 7,548 11.977 6,496 100,814 2.836 97.207 40,415 241,272 37.294 22,027 8,080 8,105 3.500 79,006 2,930 75,427 36,074 193,437 I 35.867 98.330 31.251 96,364 (150) 13.047 375 319 128.249 321,68 September 26, 2015 233,715 140,089 93.626 Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) Years ended September 30, 2017 September 24, 2016 Net sales 229.24 $ 215,639 Cost of sala 141.045 131376 Gross margin 88,186 84.263 Operating expenses Research and development 11,581 10,045 Selling, general and administrative 15.161 14.194 Total operating expenses 26,842 24,239 Operating income 61 344 60,024 Other income (expense), et 2,745 1,348 Income before provision for income taxes 64,089 61,372 Provision for income taxes 15,738 15.685 Net income 48,351 45,687 Earnings per share: Basic 9.27 835 Deted 9.21 $ 831 Shares used in computing ning per share 5.217.242 5,470,820 Diluted 5.251,692 5,500,281 Cash dividends declared per share 2.40 $ 2.18 8,067 14,329 22,396 71,230 1.285 72,515 19,121 53,394 $ 9.28 $ $ 5,753,421 5,793,069 $ See accompanying Notes to Consolidated Financial Statements September 26, 2015 S 53394 Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME in millions) Years ended September 20, 2017 September 24, 2016 Net income 48 351 S 45.687 Other comprehensive income doss) Change in foreign currency translation, net of tax effects of 50771.58 and 5201, respectively 2:34 75 Cung in need painossos derivative Instruments Change in fair value of derivatives, set of tax benefit expense) of 48 507) (441), respectively 1.315 Adjustment for meg) losses realized and included in net income et of tax expense benefit of $475, 5131 and 5630, respectively 741) Touldhange in lied gainos o derivative (1621 (734) 2.905 (3497) (592) Change in favor of the securities to be expense of 5425.506) and 5364, respectively 1.582 (483) (461 1.618 979 1434) Total comprehensive income Apple Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In millions, except number of shares which we reflected in thousande) Accumulated Other Commen Steck and Comprehensive Total Additional Paid-In Capital Retained Income Shareholders Shares Amount Farning Equity Balances as of September 27, 2014 5.866,161 $ 23,313 5 87,152 S 1,082 5 111,547 Net income 53,194 53,394 Other comprehensive income (ous) (1,427) (1.427) Dividends and dividend equivalents declared (11,627) (11,627) Repurchase of common stock (325,032) (36,026) (36,026) Share-based compensation 3.586 3,586 Common stock imad, met of shares withheld for employee taxes 37.624 (231) (609) (840) Tax benefit from equity www.ds, including transfer pricing adjustments 748 748 Balances as of September 26, 2015 5,578,753 $ 27,416 5 92,284 5 (345) 119,355 Net income 45.687 45687 Other comprehensive income foss) 979 979 Dividends and dividend equivalents declared (12.188) (12,185) Repurchase of common ock (29,000 (29,000) Share-based compensation 4,262 Common stock issued, set of shares withheld for employees (800) (419) (1,225) Tux benefit from equity wwards, including transfer pricing justments 379 379 Balances as of September 24, 2016 5.136.1665 31.251s 96,364 $ 634 5 128.249 Net 48351 48,351 Other comprehensive income foss) (754) (784) Dividends and dividend equivalent declared (12,803) (12.803) Repurchase of common stock (346.425) (33,001) (33,001) Share-based competi 4,909 4,909 Common stock med et of shares withild for employees 36.531 (913) (581) (1.490 Text beef from awards, including Balances as of September 30, 2017 620 15,67 150 See accoming Notes to Consolidated Financial Statement 37.622 kals - Goc Galtterent Appendix Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS APPL September 30, 2017 20.484 September 24, 2016 September 26, 2015 $ 21,120 $ 13.844 48.351 59,394 10,157 4,840 5,955 (166) 10.505 4.210 4,938 11.257 3,586 1,182 385 Years ended Cash and cash equivalents, beginning of the year Operating activities Netice Adjustments to reconcile net income to cash generated by operating activities Depreciation and amortization Share based compensation expense Deferred income tax expense Other Changes in operating and liabilities: Accounts receivable, net leveres Vendor non-trade receivables Other current and non-current Accuble Deferred revenge Other current and current liabilities Cashewed by operating activities Investing activities Purchases of marketable securities Proceeds from maturities of marketable securities Proceeds from sales of marketable securities Payments made is connection with business squisitions et Payments for acquisition of property, plant and equipment Payments for acquisition of pible assets Payments for regie investments, Other Cashed investing vides (2093) (2.723) (4256) (5.318) 9,618 527 217 (51) 1.085 1,837 (1.554) 2033) 65,824 417 (238) (3.735) (283) 5.001 1,042 9,058 81.266 (154) 63,598 (159.485) 31.775 94.554 (329) (142,428) 21.25 90536 (297) (12,734) (814) (1,388) (110) 145.977) (166,402) 14.53 107,447 (343) (11.247) 014 195 2:30 (46.445) (56,274) 555 Proceeds from ince of common wock ces tax benes from equity wards Pay for a related to the weet of qy awards Pe for dividende und dividendents Repurchases of commod Proceeds from ince of debt, Repayments of term de (1.874 (12.769) 2.00 195 407 (1.570 (12.150) 29.722) 24,954 (2.500 197 543 749 (1.499 (11,561) (35.253 3.500 417 17 (17,716 4 2010 Supplemental cash flow disclosure 11.592 Cipollinen > $ 5 10.444 1316 514 Seeing Notes to Calaments
