Need answers for numbers 6,7 and 8.
LAMP Consortium : Powered by S x CengageNOWv2 | Online teachin X + C A v2.cengagenow.com/ilmn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false Q T Apps ta Tennessee Wesleya.. P MyLabsPlus | Pearson G Cornerstones of Fin. Chapter 4-7 Comprehensive eBook Calculator 1. MTC.07.01 Integrative Exercise Integrating Asset Accounting Obtain Apple's fiscal 2016 10-K (filed October 26, 2016) either through the "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: 1. Looking at Note 1 (Summary of Signif ting Policies), how does Apple define cash equivalents? Highly liquid investments with maturities of 3 onths or less at the date of purchase. v 2. Looking at the "Report of Independent Regi counting Firm" supplying an opinion on Apple's internal controls over financial reporting (p. 71 of the 10-K), what was the audito s of Apple's internal control over financial reporting? Apple maintained v , in all material respects, effective internal control over financial reporting as of September 24, 2016. What criteria were used to evaluate the effectiveness of the se controls? Internal Control Integrated Fram 3. What was Apple's accounts receivable turnover (rounded to two decimal places) in 2015 and 20167 (Accounts receivable were $17,460,000,000 at the end of 2014.) 2016 13.23 \\ times 2015 13.62 V times Assuming the industry average for 2016 was 8.53, describe Apple's relative efficiency with its accounts receivable. Apple's accounts receivable turnover is better v than the industry average. Apple is managing its accounts receivable very efficiently. 4. What was Apple's inventory turnover (rounded to two decimal places) in 2015 and 2016? (Inventories were $2, 111,000,000 at the end of 2014.) 2016 58.64 V times 2015 62.82 \\ times Assuming the industry average for 2016 was 20.24, describe Apple's relative efficiency with its inventory. Apple's inventory turnover is better v ging its inventory very efficiently. 5. Describe the trend in Apple's accounts receivable entory turnover decreased v from 2015 to 2016. 6. How many days' sales does Apple have in re ntory for 2015 and 2016? (When added together, this is its operating cycle.) (Note: Round all answers 2016 2015 Days' Sales in Receivables days days Days' Sales in Inventory days 1days Operating Cycle days days 7. Conceptual Connection: Assuming 10% interest, how much interest expense did Apple incur due to its deteric amount rounded to the nearest whole dollar. For example, 7,684,268.24 would be entered as 7,684,268. (Remember, the numbers are in millions)? 8. What were Apple's gross profit, operating margin, and net profit ratios in 2016? (Note: Round answers to two decimal places.) Gross Profit Ratio Operating Margin Ratio Net Profit Margin Ratio Assuming industry averages for 2016 were 27.57%, 7.87%, and 4.76%, respectively, describe Apple's profitability- Apple was much more v profitable than the industry average and was above v the average for gross profit margin, operating margin, and net profit margin, respectively. 9. Looking at Note 1 (Summary of Significant Accounting Policies), what method of depreciation does Apple use? Straight-line method v Progress: 1/1 items Check My Work Assignment Score: 64.29% All work saved Email Instructor Save and Exit Submit Assignment for Grading
