Integrative Exercise Integrating Accounting for Uabilities and Equity Obtain Apple's 2016 10 K (filed October 26, 2016) either through the investor Relations portion of its website (do a web search for "Apple Investor Relations") or go to www.sec.gov and click "Company Filings Search" under "Filings Required: Using Apple's 10-K, answer the following questions (Hint: It may be easier to use the Word or Pof hile and use the search feature within the program) 1. Calculate Apple's current, quick, and cash ratios for 2015 and 2016. The Industry averages for these ratios for 2016 were 1.72, 141, and 0.77, respectively. Round your answers to two decimal places 2016 2015 Current Ratio 1.35 1.11 Quick Ratio Cash Ratio 0.85 0.52 Comment on Apple's short-term liquidity, For 2016, Apple exceeds the industry average for the cash but is below the industry average for the current and quick ratio. However, because there is little concern about Apple's ability to sell its inventories, the current ratio provides relatively high confidence that Apple will be able to meet its short-term obligations. 2. Calculate Apple's debt to equity, long-term debt to equity, and times interest earned (accrual basis) for 2015 and 2016. The Industry averages for these ratios for 2016 were 52.42%, 36.41%, and 13.83, respectively. You will need to read the other Income and Expense" section of the Management, Discussion & Analysis section to find the amount of Interest expense. Round your answers to two decimal places. 2016 2015 Debt to Equity % Long-Term Debt to Equity Times Interest Earned (Accrual Basis) Comment on Annie's mix of debt and out and long term solvency. 2. Calculate Apple's debt to equity, long-term debt to equity, and times interest earned (accrual basis) for 2015 and 2016. The industry averages for these ratios for 2016 were 52.42%, 36.41%, and 13.83, respectively. You will need to read the "Other Income and Expense" section of the Management, Discussion & Analysis section to find the amount of interest expense Round your answers to two decimal places. 2016 2015 Debt to Equity % % Long-Term Debt to Equity Times Interest Earned (Accrual Basis) Comment on Apple's mix of debt and equity and long-term solvency. Apple is well above the industry averages for all three ratios. There is little risk of long-term solvency issues. 3. Calculate Apple's return on equity for 2015 and 2016 (stockholders' equity for 2014 was $111,547,000,000). The Industry average for 2016 was 15.20%. Round your answers to two decimal places 2015 2016 4 Comment on Apple's profitability, Apple is above the industry average for return on equity. It is doing well. 4. Calculate Apple's Dividend Payout, Stock Repurchase Payout and Total Payout for 2015 and 2016. Round your answers to two decimal places 2016 2015 Dividend Payout Stock Repurchase Payout 95 96 Total Payout % COMITETTORESCENSORS Apple is well above the industry averages for all three ratios. There is little risk of long-term solvency issues. 3. Calculate Apple's return on equity for 2015 and 2016 (stockholders' equity for 2014 was $111,547,000,000). The Industry average for 2016 was 15.26%. Round your answers to two decimal places 2015 % 2016 % Comment on Apple's profitability Apple is above the industry average for return on equity. It is doing well. 4. Calculate Apple's Dividend Payout, Stock Repurchase Payout and Total Payout for 2015 and 2016, Round your answers to two decimal places % 2016 2015 Dividend Payout % Stock Repurchase Payout % Total Payout What are Apple's objectives with their dividend policy and stock repurchase plan (See the "Capital Return Program" portion of Item 7: Management Discussion and Analysis)? Apple is attempting to return capital of between $200 and $250 billion to shareholders through a $175 billion share repurchase plan. The remaining $25 to $75 billion will come in the form of dividends. 96 Feedback Check My Work Note 7 - Shareholders' Equity Dividends The Company declared and paid cash dividends per share during the periods presented as follows: Dividends Per Share Amount (in millions) 0.57 S 0.57 0.52 3,071 3,117 2.879 2,898 11,965 0.52 2.18 $ 2016: Fourth quarter Third quarter Second quarter First quarter Total cash dividends declared and paid 2015 Fourth quarter Third quarter Second quarter First quarter Total cash dividends declared and paid $ 2.950 0.52 0.52 0.47 0.47 1.98 2,997 2.734 2,750 11,431 $ Future dividends are subject to declaration by the Board of Directors. Liquidity and Capital Resources The following table presents selected financial information and statistics as of and for the years ended September 24, 2016 September 26, 2015 and September 27, 2014 (in millions): Cash, cash equivalents and marketable securities Property, plant and equipment, net Commercial paper Total term debt Working capital Cash generated by operating activities Cash used in investing activities Cash used in financing activities $ $ $ $ $ $ $ $ 2016 237,585 $ 27,010 s 8,105 $ 78,927 $ 27,863 $ 65,824 $ (45,977) $ (20,483) $ 2015 205,666 $ 22,471 $ 8,499 $ 55,829 $ 8,768 $ 81,266 $ (56,274) $ (17.716) $ 2014 155.239 20,624 6,308 28,987 5,083 59.713 (22,579) (37,549) The Company believes its existing balances of cash, cash equivalents and marketable securities will be sufficient to satisfy its working capital needs, capital asset purchases, outstanding commitments and other liquidity requirements associated with its existing operations over the next 12 months. The Company currently anticipates the cash used for future dividends, the share repurchase program and debt repayments will come from its current domestic cash, cash generated from on-going U.S. operating activities and from borrowings, Purchases of Equity Securities by the Issuer and Affiliated Purchasers Share repurchase activity during the three months ended September 24, 2016 was as follows (in millions, except number of shares, which are reflected in thousands, and per share amounts): Total Number of Approximate Shares Dollar Value of Average Purchased as part Shares That May Yet Be Total Number Price of Publicly Purchased of Shares Pald Per Announced Plans Under the Plans or Periods Purchased Share or Programs Programs (0) June 26, 2016 to July 30, 2016: Open market and privately negotiated purchases 9,036 $ 96.83 9,036 July 31, 2016 to August 27, 2016: May 2016 ASR Open market and privately negotiated purchases 12,269 11.919 (2) 108.11 s 12,269 11,919 August 28, 2016 to September 24, 2016: August 2016 ASR Open market and privately negotiated purchases Total 22,468 (3) 7,624 63,316 $ 109.71 22,468 (3) 7,624 $ 42,024 (1) In April 2016, the Company's Board of Directors increased the Company's share repurchase program authorization from $140 billion to $175 billion of the Company's common stock. As of September 24, 2016. $133 billion of the $175 billion had been utilized. The remaining $42 billion in the table represents the amount available to repurchase shares under the authorized repurchase program as of September 24, 2016. The Company's share repurchase program does not obligate it to acquire any specific number of shares. Under the program, shares may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Exchange Act. (2) In May 2016, the Company entered into an accelerated share repurchase arrangement ("ASR") to purchase up to $6.0 bilion of the Company's common stock. In August 2016, the purchase period for this ASR ended and an additional 12.3 milion shares were delivered and retired. In total, 905 u op HBO, WI are reiected in thousands, and per share amounts). 2016 Net sales Net income $ $ 215,639 45,687 2015 233,715 53,394 $ $ $ 2014 182.795 39,510 $ $ 2013 170,910 37,037 $ $ 2012 156,508 41,733 $ Earnings per share Basic Diluted $ $ 8.35 8.31 9.28 $ $ $ $ 6.49 $ 6.45$ 5.72 5.68 9.22 $ 6.38 6.31 S Cash dividends declared per share $ 2.18 $ 1.98 $ 1.82 s 1.64 $ 0.38 Shares used in computing earnings per share: Basic Diluted 5,470,820 5,500,281 5,753,421 5,793,069 6,085,572 6,122,663 6,477,320 6,521,634 6,543,726 6,617,483 $ $ $ $ 146,761 207.000 Total cash, cash equivalents and marketable securities Total assets Commercial paper Total term debt (1) Other long-term obligations (2) Total liabilities Total shareholders' equity 121,251 176,064 237,585 321,686 8,105 78,927 36,074 193,437 128,249 $ $ $ $ $ $ $ $ $ $ $ $ $ $ 205,666 $ 290,345 $ 8,499 $ 55,829 s 33,427 $ 170.990 $ 119,355 $ 155,239 231,839 6,308 28,987 24,826 120.292 111,547 $ $ $ $ $ $ $ 16.960 20,208 83,451 123,549 $ $ 16,664 57,854 118,210 $ (1) Includes current and long-term portion of term In April 2016, the Company's Board of Directors increased the share repurchase program authorization from $140 billion to $175 billion of the Company's common stock, increasing the expected total size of the capital return program from $200 billion to $250 billion. Additionally in April 2016, the Company announced that the Board of Directors raised the rate of the Company's quarterly cash dividend by 10% from $0.52 to $0.57 per share, beginning with the dividend paid during the third quarter of 2016. The Company intends to increase its dividend on an annual basis subject to declaration by the Board of Directors. As of September 24, 2016 , $133 billion of the share repurchase program has been utilized. The Company's share repurchase program does not obligate it to acquire any specific number of shares. Under the program, shares may be repurchased in privately negotiated or open market transactions, including under plans complying with Rule 10b5-1 under the Exchange Act. The following table presents the Company's dividends, dividend equivalents, share repurchases and net share settlement activity from the start of the capital return program in August 2012 through September 24, 2016 (in Millions): Dividends and Taxes Related Dividend Accelerated Share Open Market to Settlement Equivalents Paid Repurchases Share Repurchases of Equity Awards Total 2016 s 12,150 $ 12,000 17,000 1,570 $ 42,720 2015 11,561 6,000 30,026 1,499 49,086 2014 11.126 21,000 24,000 1,158 57284 2013 10,564 13,950 9,000 1,082 34,596 2012 2,488 56 2,544 Total 47,889 $ 52,950 80,026 5,365 $ 186,230 $ The Company expects to execute its capital return program by the end of March 2018 by paying dividends and dividend equivalents, repurchasing shares and remitting withheld taxes related to net share settlement of restricted stock units. The Company plans to continue to access the domestic and international debt markets to assist in funding its capital return program. Off-Balance Sheet Arrangements and Contractual Obligations The Company has not entered into any transactions with unconsolidated entities whereby the Company has financial guarantees, subordinated retained interests, derivative Instruments, or other contingent arrangements that expose the Company to material continuing risks, contingent liabilities, or any other obligation under a variable interest in an unconsolidated entity that provides financing, liquidity, market risk, or credit risk support to the Company, or engages in leasing, hedging, or R&D services with the Company, Integrative Exercise Integrating Accounting for Liabilities and Equity Obtain Apple's 2016 10 K (filed October 26, 2016) either through the "Investor Relations portion of its website (do a web search for "Apple Investor Relations") or go to www.sec.gov and click "Company Filings Search" under "Filings." Required: Using Apple's 10-K, answer the following questions (Hint: It may be easier to use the Word or PDF file and use the search feature within the program): 1. Calculate Apple's current, quick, and cash ratios for 2015 and 2016. The Industry averages for these ratios for 2016 were 1.72, 1.41, and 0.77, respectively. Round your answers to two decimal places 2016 2015 Current Ratio 1.35 1.11 Quick Ratio Cash Ratio 0.85 0.52 Comment on Apple's short-term quidity. For 2016, Apple exceeds the industry average for the cash but is below the industry average for the current and quick ratio. However, because there is little concern about Apple's ability to sell its inventories, the current ratio provides relatively high confidence that Apple we be able to meet its short-term obligations dropdown 2. Calculate Apple's debt to equity, long-term debt to equity, and times interest earned (accrual basis) for 2015 and 2016. The industry averages for these ratios for 2016 were 52.424, 36.41%, and 13.83, respectively. You will need to read the other Income and Expense" section of the Management, Discussion & Analysis section to find the amount of interest expense Round your answers to two decimal places 2016 2015 Debt to Equity 5 Long-Term Debt to Equity Check My Work FOI 2010, Apple exceeds the insury average for the cash is below the industry average or the current and quick rad. However, because there is me concern about Apple's ability to sell its inventories, the current ratio provides relatively high confidence that Apple will be able to meet its short-term obligations 2. Calculate Apple's debt to equity, long-term debt to equity, and times interest earned (accrual basis) for 2015 and 2016. The industry averages for these ratios for 2016 were 52.42%, 36.41%, and 13.83, respectively. You will need to read the other Income and Expense' section of the Management, Discussion & Analysis section to find the amount of interest expense Round your answers to two decimal places 2016 2015 Debt to Equity % Long-Term Debt to Equity % Times Interest Earned (Accrual Basis) Comment on Apple's mix of debt and equity and long-term solvency. Apple is well above the industry averages for all three ratios. There is little risk of long-term solvency issues 3. Calculate ople's return on equity for 2015 and 2016 (stockholders' equity for 2014 was $111,547,000,000). The industry average for 2016 was 15.26%. Round your answers to two decimal places 2015 2016 Comment on Apple's profitability Apple is above the industry average for return on equity. It is doing well 4. Calculate Apple's Dividend Payout, Stock Repurchase Payout and Total Payout for 2015 and 2016 Round your answers to two decimal places 2016 2015 eBook Calculator Print Item Apple is well above the industry averages for all three ratios. There is little risk of long-term solvency issues, 3. Calculate Apple's return on equity for 2015 and 2016 (stockholders' equity for 2014 was $111,547,000,000). The industry average for 2016 was 15.26%. Round your answers to two decimal places 2015 % 2016 % Comment on Apple's profitability, Apple is above the industry average for return on equity. It is doing well. 4. Calculate Apple's Dividend Payout, Stock Repurchase Payout and Total Payout for 2015 and 2016 Round your answers to two decimal places 2016 2015 Dividend Payout % % % Stock Repurchase Payout Total Payout What are Apple's objectives with their dividend policy and stock repurchase plan (See the "Capital Return Program portion of Item 7: Management Discussion and Analysis) Aople is attempting to return capital of between $200 and $250 billion to shareholders through a $175 billion share repurchase plan. The remaining $25 to $75 billion will come in the form of dividends Partially correct Check My Work Integrative Exercise Integrating Accounting for Uabilities and Equity Obtain Apple's 2016 10 K (filed October 26, 2016) either through the investor Relations portion of its website (do a web search for "Apple Investor Relations") or go to www.sec.gov and click "Company Filings Search" under "Filings Required: Using Apple's 10-K, answer the following questions (Hint: It may be easier to use the Word or Pof hile and use the search feature within the program) 1. Calculate Apple's current, quick, and cash ratios for 2015 and 2016. The Industry averages for these ratios for 2016 were 1.72, 141, and 0.77, respectively. Round your answers to two decimal places 2016 2015 Current Ratio 1.35 1.11 Quick Ratio Cash Ratio 0.85 0.52 Comment on Apple's short-term liquidity, For 2016, Apple exceeds the industry average for the cash but is below the industry average for the current and quick ratio. However, because there is little concern about Apple's ability to sell its inventories, the current ratio provides relatively high confidence that Apple will be able to meet its short-term obligations. 2. Calculate Apple's debt to equity, long-term debt to equity, and times interest earned (accrual basis) for 2015 and 2016. The Industry averages for these ratios for 2016 were 52.42%, 36.41%, and 13.83, respectively. You will need to read the other Income and Expense" section of the Management, Discussion & Analysis section to find the amount of Interest expense. Round your answers to two decimal places. 2016 2015 Debt to Equity % Long-Term Debt to Equity Times Interest Earned (Accrual Basis) Comment on Annie's mix of debt and out and long term solvency. 2. Calculate Apple's debt to equity, long-term debt to equity, and times interest earned (accrual basis) for 2015 and 2016. The industry averages for these ratios for 2016 were 52.42%, 36.41%, and 13.83, respectively. You will need to read the "Other Income and Expense" section of the Management, Discussion & Analysis section to find the amount of interest expense Round your answers to two decimal places. 2016 2015 Debt to Equity % % Long-Term Debt to Equity Times Interest Earned (Accrual Basis) Comment on Apple's mix of debt and equity and long-term solvency. Apple is well above the industry averages for all three ratios. There is little risk of long-term solvency issues. 3. Calculate Apple's return on equity for 2015 and 2016 (stockholders' equity for 2014 was $111,547,000,000). The Industry average for 2016 was 15.20%. Round your answers to two decimal places 2015 2016 4 Comment on Apple's profitability, Apple is above the industry average for return on equity. It is doing well. 4. Calculate Apple's Dividend Payout, Stock Repurchase Payout and Total Payout for 2015 and 2016. Round your answers to two decimal places 2016 2015 Dividend Payout Stock Repurchase Payout 95 96 Total Payout % COMITETTORESCENSORS Apple is well above the industry averages for all three ratios. There is little risk of long-term solvency issues. 3. Calculate Apple's return on equity for 2015 and 2016 (stockholders' equity for 2014 was $111,547,000,000). The Industry average for 2016 was 15.26%. Round your answers to two decimal places 2015 % 2016 % Comment on Apple's profitability Apple is above the industry average for return on equity. It is doing well. 4. Calculate Apple's Dividend Payout, Stock Repurchase Payout and Total Payout for 2015 and 2016, Round your answers to two decimal places % 2016 2015 Dividend Payout % Stock Repurchase Payout % Total Payout What are Apple's objectives with their dividend policy and stock repurchase plan (See the "Capital Return Program" portion of Item 7: Management Discussion and Analysis)? Apple is attempting to return capital of between $200 and $250 billion to shareholders through a $175 billion share repurchase plan. The remaining $25 to $75 billion will come in the form of dividends. 96 Feedback Check My Work Note 7 - Shareholders' Equity Dividends The Company declared and paid cash dividends per share during the periods presented as follows: Dividends Per Share Amount (in millions) 0.57 S 0.57 0.52 3,071 3,117 2.879 2,898 11,965 0.52 2.18 $ 2016: Fourth quarter Third quarter Second quarter First quarter Total cash dividends declared and paid 2015 Fourth quarter Third quarter Second quarter First quarter Total cash dividends declared and paid $ 2.950 0.52 0.52 0.47 0.47 1.98 2,997 2.734 2,750 11,431 $ Future dividends are subject to declaration by the Board of Directors. Liquidity and Capital Resources The following table presents selected financial information and statistics as of and for the years ended September 24, 2016 September 26, 2015 and September 27, 2014 (in millions): Cash, cash equivalents and marketable securities Property, plant and equipment, net Commercial paper Total term debt Working capital Cash generated by operating activities Cash used in investing activities Cash used in financing activities $ $ $ $ $ $ $ $ 2016 237,585 $ 27,010 s 8,105 $ 78,927 $ 27,863 $ 65,824 $ (45,977) $ (20,483) $ 2015 205,666 $ 22,471 $ 8,499 $ 55,829 $ 8,768 $ 81,266 $ (56,274) $ (17.716) $ 2014 155.239 20,624 6,308 28,987 5,083 59.713 (22,579) (37,549) The Company believes its existing balances of cash, cash equivalents and marketable securities will be sufficient to satisfy its working capital needs, capital asset purchases, outstanding commitments and other liquidity requirements associated with its existing operations over the next 12 months. The Company currently anticipates the cash used for future dividends, the share repurchase program and debt repayments will come from its current domestic cash, cash generated from on-going U.S. operating activities and from borrowings, Purchases of Equity Securities by the Issuer and Affiliated Purchasers Share repurchase activity during the three months ended September 24, 2016 was as follows (in millions, except number of shares, which are reflected in thousands, and per share amounts): Total Number of Approximate Shares Dollar Value of Average Purchased as part Shares That May Yet Be Total Number Price of Publicly Purchased of Shares Pald Per Announced Plans Under the Plans or Periods Purchased Share or Programs Programs (0) June 26, 2016 to July 30, 2016: Open market and privately negotiated purchases 9,036 $ 96.83 9,036 July 31, 2016 to August 27, 2016: May 2016 ASR Open market and privately negotiated purchases 12,269 11.919 (2) 108.11 s 12,269 11,919 August 28, 2016 to September 24, 2016: August 2016 ASR Open market and privately negotiated purchases Total 22,468 (3) 7,624 63,316 $ 109.71 22,468 (3) 7,624 $ 42,024 (1) In April 2016, the Company's Board of Directors increased the Company's share repurchase program authorization from $140 billion to $175 billion of the Company's common stock. As of September 24, 2016. $133 billion of the $175 billion had been utilized. The remaining $42 billion in the table represents the amount available to repurchase shares under the authorized repurchase program as of September 24, 2016. The Company's share repurchase program does not obligate it to acquire any specific number of shares. Under the program, shares may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Exchange Act. (2) In May 2016, the Company entered into an accelerated share repurchase arrangement ("ASR") to purchase up to $6.0 bilion of the Company's common stock. In August 2016, the purchase period for this ASR ended and an additional 12.3 milion shares were delivered and retired. In total, 905 u op HBO, WI are reiected in thousands, and per share amounts). 2016 Net sales Net income $ $ 215,639 45,687 2015 233,715 53,394 $ $ $ 2014 182.795 39,510 $ $ 2013 170,910 37,037 $ $ 2012 156,508 41,733 $ Earnings per share Basic Diluted $ $ 8.35 8.31 9.28 $ $ $ $ 6.49 $ 6.45$ 5.72 5.68 9.22 $ 6.38 6.31 S Cash dividends declared per share $ 2.18 $ 1.98 $ 1.82 s 1.64 $ 0.38 Shares used in computing earnings per share: Basic Diluted 5,470,820 5,500,281 5,753,421 5,793,069 6,085,572 6,122,663 6,477,320 6,521,634 6,543,726 6,617,483 $ $ $ $ 146,761 207.000 Total cash, cash equivalents and marketable securities Total assets Commercial paper Total term debt (1) Other long-term obligations (2) Total liabilities Total shareholders' equity 121,251 176,064 237,585 321,686 8,105 78,927 36,074 193,437 128,249 $ $ $ $ $ $ $ $ $ $ $ $ $ $ 205,666 $ 290,345 $ 8,499 $ 55,829 s 33,427 $ 170.990 $ 119,355 $ 155,239 231,839 6,308 28,987 24,826 120.292 111,547 $ $ $ $ $ $ $ 16.960 20,208 83,451 123,549 $ $ 16,664 57,854 118,210 $ (1) Includes current and long-term portion of term In April 2016, the Company's Board of Directors increased the share repurchase program authorization from $140 billion to $175 billion of the Company's common stock, increasing the expected total size of the capital return program from $200 billion to $250 billion. Additionally in April 2016, the Company announced that the Board of Directors raised the rate of the Company's quarterly cash dividend by 10% from $0.52 to $0.57 per share, beginning with the dividend paid during the third quarter of 2016. The Company intends to increase its dividend on an annual basis subject to declaration by the Board of Directors. As of September 24, 2016 , $133 billion of the share repurchase program has been utilized. The Company's share repurchase program does not obligate it to acquire any specific number of shares. Under the program, shares may be repurchased in privately negotiated or open market transactions, including under plans complying with Rule 10b5-1 under the Exchange Act. The following table presents the Company's dividends, dividend equivalents, share repurchases and net share settlement activity from the start of the capital return program in August 2012 through September 24, 2016 (in Millions): Dividends and Taxes Related Dividend Accelerated Share Open Market to Settlement Equivalents Paid Repurchases Share Repurchases of Equity Awards Total 2016 s 12,150 $ 12,000 17,000 1,570 $ 42,720 2015 11,561 6,000 30,026 1,499 49,086 2014 11.126 21,000 24,000 1,158 57284 2013 10,564 13,950 9,000 1,082 34,596 2012 2,488 56 2,544 Total 47,889 $ 52,950 80,026 5,365 $ 186,230 $ The Company expects to execute its capital return program by the end of March 2018 by paying dividends and dividend equivalents, repurchasing shares and remitting withheld taxes related to net share settlement of restricted stock units. The Company plans to continue to access the domestic and international debt markets to assist in funding its capital return program. Off-Balance Sheet Arrangements and Contractual Obligations The Company has not entered into any transactions with unconsolidated entities whereby the Company has financial guarantees, subordinated retained interests, derivative Instruments, or other contingent arrangements that expose the Company to material continuing risks, contingent liabilities, or any other obligation under a variable interest in an unconsolidated entity that provides financing, liquidity, market risk, or credit risk support to the Company, or engages in leasing, hedging, or R&D services with the Company, Integrative Exercise Integrating Accounting for Liabilities and Equity Obtain Apple's 2016 10 K (filed October 26, 2016) either through the "Investor Relations portion of its website (do a web search for "Apple Investor Relations") or go to www.sec.gov and click "Company Filings Search" under "Filings." Required: Using Apple's 10-K, answer the following questions (Hint: It may be easier to use the Word or PDF file and use the search feature within the program): 1. Calculate Apple's current, quick, and cash ratios for 2015 and 2016. The Industry averages for these ratios for 2016 were 1.72, 1.41, and 0.77, respectively. Round your answers to two decimal places 2016 2015 Current Ratio 1.35 1.11 Quick Ratio Cash Ratio 0.85 0.52 Comment on Apple's short-term quidity. For 2016, Apple exceeds the industry average for the cash but is below the industry average for the current and quick ratio. However, because there is little concern about Apple's ability to sell its inventories, the current ratio provides relatively high confidence that Apple we be able to meet its short-term obligations dropdown 2. Calculate Apple's debt to equity, long-term debt to equity, and times interest earned (accrual basis) for 2015 and 2016. The industry averages for these ratios for 2016 were 52.424, 36.41%, and 13.83, respectively. You will need to read the other Income and Expense" section of the Management, Discussion & Analysis section to find the amount of interest expense Round your answers to two decimal places 2016 2015 Debt to Equity 5 Long-Term Debt to Equity Check My Work FOI 2010, Apple exceeds the insury average for the cash is below the industry average or the current and quick rad. However, because there is me concern about Apple's ability to sell its inventories, the current ratio provides relatively high confidence that Apple will be able to meet its short-term obligations 2. Calculate Apple's debt to equity, long-term debt to equity, and times interest earned (accrual basis) for 2015 and 2016. The industry averages for these ratios for 2016 were 52.42%, 36.41%, and 13.83, respectively. You will need to read the other Income and Expense' section of the Management, Discussion & Analysis section to find the amount of interest expense Round your answers to two decimal places 2016 2015 Debt to Equity % Long-Term Debt to Equity % Times Interest Earned (Accrual Basis) Comment on Apple's mix of debt and equity and long-term solvency. Apple is well above the industry averages for all three ratios. There is little risk of long-term solvency issues 3. Calculate ople's return on equity for 2015 and 2016 (stockholders' equity for 2014 was $111,547,000,000). The industry average for 2016 was 15.26%. Round your answers to two decimal places 2015 2016 Comment on Apple's profitability Apple is above the industry average for return on equity. It is doing well 4. Calculate Apple's Dividend Payout, Stock Repurchase Payout and Total Payout for 2015 and 2016 Round your answers to two decimal places 2016 2015 eBook Calculator Print Item Apple is well above the industry averages for all three ratios. There is little risk of long-term solvency issues, 3. Calculate Apple's return on equity for 2015 and 2016 (stockholders' equity for 2014 was $111,547,000,000). The industry average for 2016 was 15.26%. Round your answers to two decimal places 2015 % 2016 % Comment on Apple's profitability, Apple is above the industry average for return on equity. It is doing well. 4. Calculate Apple's Dividend Payout, Stock Repurchase Payout and Total Payout for 2015 and 2016 Round your answers to two decimal places 2016 2015 Dividend Payout % % % Stock Repurchase Payout Total Payout What are Apple's objectives with their dividend policy and stock repurchase plan (See the "Capital Return Program portion of Item 7: Management Discussion and Analysis) Aople is attempting to return capital of between $200 and $250 billion to shareholders through a $175 billion share repurchase plan. The remaining $25 to $75 billion will come in the form of dividends Partially correct Check My Work
