Compute the following five ratios for Apple, Inc. and Microsoft, Inc. for F/Y 2014. Show complete computations. BRIEFLY explain how Apple and Microsoft compare in each case. 1) Interest Coverage Ratio (aka Times Interest Earned): EBIT/Interest Expense 2) Gross Profit Margin (aka Gross Profit Rate): Gross profit/Net sales 3) Net Profit Margin (aka Profit Margin): Net income/Net sales Vertical Analysis 2014 Income Statements - Apple, Inc. and Microsoft, Inc. SOTt Revenues Cost of sales Gross profit Demand creation expense Operating overhead expense Total selling and administrative expense Income from operaton Interest expense (income), net Other (income) expense, net Income before income taxes Income tax expense Income (loss) from equity method of investment NET INCOME Earnings per common share: Basic Diluted Weighted average common shares outstanding: Basic Diluted 2014 - Apple % of Total Revenue 2014 - Microsoft % of Total Revenue 39117 100.00% 5267132 100.00% 21643 55.33% 2796599 53.10% 17474 44.67% 2470533 46.90% 3753 9.59% 8949 22.88% 12702 32.47% 2233763 42.41% 4772 236770 49 0.13% -21240 -0.40% -78 -0.20% -5688 -0.11% 4801 12.27% 209842 3.98% 772 1.97% 70024 1.33% -47,679 4029 10.30% 92139 1.75% 2.55 2.49 0.01% 0.01% 0.2 0.2 0.00% 0.00% 1579.7 1618.4 4.04% 4.14% 450964 454274 8.56% 8.62%