M G Financial Statement Analysis connect FSA 3-1 Use Apple's financial statements in Appendix A to answer the following. COMP 1. Compute Apple's profit margin for fiscal years ended (a) September 29, 2018, and (b) Septem- ANALY ber 30, 2017 A1 2. Is the change in Apple's profit margin favorable or unfavorable? 3. In 2018, did Apple's profit margin outperform or underperform the industry (assumed) average of 12%? FSA 3-2 Key figures for the recent two years of both Apple and Google follow. COM ANAI Apple Google A1 $ millions Current Year Prior Year Current Year Prior Year Net income. $ 59,531 $ 48,351 $ 30,736 $ 12,662 Net sales 265,595 229,234 136,819 110.855 Current assets 131,339 128,645 135,676 124,308 Current liabilities .... 116,866 100,814 34,620 24,183 Required 1. Compute profit margins for (a) Apple and (b) Google for the two years of data reported above. 2. In the current year, which company is more successful on the basis of profit margin? [continued on next page]