Financial Accounting 101

Access the September 30, 2017, l0-K report for Apple, Inc. (ticker: AAPL), filed on November 3, 2017, from the EDGAR filings at SEC.gov and the Financial Statements in Appendix A in your text and E-book.

Answer the following:

1. What products are manufactured by Apple? ( See Heading Business in the EDGAR filings).
2. What inventory method does Apple use? Hint: See Note 1 to its financial statements (Appendix A).
3. Compute Apples gross margin ($) and gross margin ratio (%) for the 2017 fiscal year. Compare and comment on the comparison with industry average - assume an industry average of 40% for the gross margin ratio. Use the Consolidated Statements September 30, 2017. State whether better or worse than industry average.
4. Compute its inventory turnover and days' sales in inventory for the year ended September 30, 2017. Compare and comment on comparison - assume an industry average of 15 for inventory turnover and 9 for days' sales in inventory. Use the Consolidated Statements for September 30, 2017 and 2016. State whether better or worse than industry average and why it is important.

5.Compute the Current Ratio for Apple and compare to Industry average of 2.6 to 1. Comment on comparison