Information on page 43 (The Statements of Cash Flows) and 22 (Selected Financial Data): http://investor.apple.com/secfiling.cfm?filingid=1193125-15-356351&cik=320193#D17062D10K_HTM_TOC17062_29

Calculate the following ratio for the last two years and answer the questions.Remember, if you need them you will find prior years amounts in the Five-Year Summary of Selected Financial Data. Show your computations.

1. Solvency:

Make sure to show your work.

a) Debt ratio (NOT the debt-to-equity) calculations for two years:

Annual Report: Current year ______________________ Previous year ____________________

b) Explain what information this ratio provides. Why do we use it?

c) How do the results for your company compare by year? Which asset or liability had the largest change? Explain and give possible reasons for what youve found.(at least one paragraph)

2. Profitability:

Make sure to show your work.

a) Profit margin ratio calculations for two years:

Annual Report: Current year ______________________ Previous year ____________________

b) Explain what information this ratio provides. Why do we use it?

c) How do the results for your company compare by year? Which item(s) on the income statement had the largest change? Explain and give possible reasons for what youve found. (at least one paragraph)

PLEASE ANSWER ALL THE QUESTIONS!