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Compute for 2019 and 2018 the debt to assets ratio and times interest earned. (Round time interest earned answers to 1 decimal place, e.g. 15.2.)

		2019			2018
Debt to Assets Ratio		enter percentages	%		enter percentages	%
Times Interest Earned		enter a number of times rounded to 1 decimal place	times		enter a number of times rounded to 1 decimal place	times

(c1) Compute for 2019 and 2018 the profit margin, asset turnover, return on assets, and return on common stockholders equity. How would you evaluate Apples profitability? Total assets at September 30, 2017, were $375,319 million and total stockholders equity at September 30, 2017, was $134,047 million. (Round Asset turnover to 2 decimal places, e.g. 15.25 and all other answers to 1 decimal place, e.g 15.2%.)

		2019			2018
Profit Margin		enter percentages rounded to 1 decimal place	%		enter percentages rounded to 1 decimal place	%
Asset Turnover		enter a number of times rounded to 2 decimal places	times		enter a number of times rounded to 2 decimal places	times
Return on Assets		enter percentages rounded to 1 decimal place	%		enter percentages rounded to 1 decimal place	%
Return on Common Stockholders Equity		enter percentages rounded to 1 decimal place	%		enter percentages rounded to 1 decimal place	%

CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) Years ended September 28, 2019 September 29, 2018 September 30, 2017 Net sales: Products $ 213,883 $ 225,847 $ 196,534 Services 46,291 39,748 32,700 Total net sales 260,174 265,595 229,234 Cost of sales: Products 144,996 148,164 126,337 Services 16,786 15,592 14,711 Total cost of sales 161,782 163,756 141,048 Gross margin 98,392 101,839 88,186 Operating expenses: Research and development 16,217 14,236 11,581 Selling, general and administrative 18,245 16,705 15,261 Total operating expenses 34,462 30,941 26,842 Operating income 63,930 70,898 61,344 Other income/(expense), net 1,807 2,005 2,745 Income before provision for income taxes 65,737 72,903 64,089 Provision for income taxes 10,481 13,372 15,738 Net income $ 55,256 $ 59,531 $ 48,351 Earnings per share: Basic $ 11.97 $ 12.01 $ 9.27 Diluted $ 11.89 $ 11.91 $ 9.21 Shares used in computing earnings per share: Basic 4,617,834 4,955,377 5,217,242 Diluted 4,648,913 5,000,109 5,251,692 See accompanying Notes to Consolidated Financial Statements. Apple Inc. | 2019 Form 10-K | 30 Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) Years ended September 28, 2019 September 29, 2018 September 30, 2017 Net income $ 55,256 $ 59,531 $ 48,351 Other comprehensive income/(loss): Change in foreign currency translation, net of tax (408) (525) 224 Change in unrealized gains/losses on derivative instruments, net of tax: Change in fair value of derivatives (661) 523 1,315 Adjustment for net (gains)/losses realized and included in net income 23 382 (1,477) Total change in unrealized gains/losses on derivative instruments (638) 905 (162) Change in unrealized gains/losses on marketable securities, net of tax: Change in fair value of marketable securities 3,802 (3,407) (782) Adjustment for net (gains)/losses realized and included in net income 25 1 (64) Total change in unrealized gains/losses on marketable securities 3,827 (3,406) (846) Total other comprehensive income/(loss) 2,781 (3,026) (784) Total comprehensive income $ 58,037 $ 56,505 $ 47,567 See accompanying Notes to Consolidated Financial Statements. Apple Inc. | 2019 Form 10-K | 31 Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 28, 2019 September 29, 2018 ASSETS: Current assets: Cash and cash equivalents $ 48,844 $ 25,913 Marketable securities 51,713 40,388 Accounts receivable, net 22,926 23,186 Inventories 4,106 3,956 Vendor non-trade receivables 22,878 25,809 Other current assets 12,352 12,087 Total current assets 162,819 131,339 Non-current assets: Marketable securities 105,341 170,799 Property, plant and equipment, net 37,378 41,304 Other non-current assets 32,978 22,283 Total non-current assets 175,697 234,386 Total assets $ 338,516 $ 365,725 LIABILITIES AND SHAREHOLDERS EQUITY: Current liabilities: Accounts payable $ 46,236 $ 55,888 Other current liabilities 37,720 33,327 Deferred revenue 5,522 5,966 Commercial paper 5,980 11,964 Term debt 10,260 8,784 Total current liabilities 105,718 115,929 Non-current liabilities: Term debt 91,807 93,735 Other non-current liabilities 50,503 48,914 Total non-current liabilities 142,310 142,649 Total liabilities 248,028 258,578 Commitments and contingencies Shareholders equity: Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 4,443,236 and 4,754,986 shares issued and outstanding, respectively 45,174 40,201 Retained earnings 45,898 70,400 Accumulated other comprehensive income/(loss) (584) (3,454) Total shareholders equity 90,488 107,147 Total liabilities and shareholders equity $ 338,516 $ 365,725 See accompanying Notes to Consolidated Financial Statements. Apple Inc. | 2019 Form 10-K | 32 Apple Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY (In millions, except per share amounts) Years ended September 28, 2019 September 29, 2018 September 30, 2017 Total shareholders equity, beginning balances $ 107,147 $ 134,047 $ 128,249 Common stock and additional paid-in capital: Beginning balances 40,201 35,867 31,251 Common stock issued 781 669 555 Common stock withheld related to net share settlement of equity awards (2,002) (1,778) (1,468) Share-based compensation 6,194 5,443 4,909 Tax benefit from equity awards, including transfer pricing adjustments 620 Ending balances 45,174 40,201 35,867 Retained earnings: Beginning balances 70,400 98,330 96,364 Net income 55,256 59,531 48,351 Dividends and dividend equivalents declared (14,129) (13,735) (12,803) Common stock withheld related to net share settlement of equity awards (1,029) (948) (581) Common stock repurchased (67,101) (73,056) (33,001) Cumulative effects of changes in accounting principles 2,501 278 Ending balances 45,898 70,400 98,330 Accumulated other comprehensive income/(loss): Beginning balances (3,454) (150) 634 Other comprehensive income/(loss) 2,781 (3,026) (784) Cumulative effects of changes in accounting principles 89 (278) Ending balances (584) (3,454) (150) Total shareholders equity, ending balances $ 90,488 $ 107,147 $ 134,047 Dividends and dividend equivalents declared per share or RSU $ 3.00 $ 2.72 $ 2.40 See accompanying Notes to Consolidated Financial Statements. Apple Inc. | 2019 Form 10-K | 33 Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) Years ended September 28, 2019 September 29, 2018 September 30, 2017 Cash, cash equivalents and restricted cash, beginning balances $ 25,913 $ 20,289 $ 20,484 Operating activities: Net income 55,256 59,531 48,351 Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization 12,547 10,903 10,157 Share-based compensation expense 6,068 5,340 4,840 Deferred income tax expense/(benefit) (340) (32,590) 5,966 Other (652) (444) (166) Changes in operating assets and liabilities: Accounts receivable, net 245 (5,322) (2,093) Inventories (289) 828 (2,723) Vendor non-trade receivables 2,931 (8,010) (4,254) Other current and non-current assets 873 (423) (5,318) Accounts payable (1,923) 9,175 8,966 Deferred revenue (625) (3) (593) Other current and non-current liabilities (4,700) 38,449 1,092 Cash generated by operating activities 69,391 77,434 64,225 Investing activities: Purchases of marketable securities (39,630) (71,356) (159,486) Proceeds from maturities of marketable securities 40,102 55,881 31,775 Proceeds from sales of marketable securities 56,988 47,838 94,564 Payments for acquisition of property, plant and equipment (10,495) (13,313) (12,451) Payments made in connection with business acquisitions, net (624) (721) (329) Purchases of non-marketable securities (1,001) (1,871) (521) Proceeds from non-marketable securities 1,634 353 126 Other (1,078) (745) (124) Cash generated by/(used in) investing activities 45,896 16,066 (46,446) Financing activities: Proceeds from issuance of common stock 781 669 555 Payments for taxes related to net share settlement of equity awards (2,817) (2,527) (1,874) Payments for dividends and dividend equivalents (14,119) (13,712) (12,769) Repurchases of common stock (66,897) (72,738) (32,900) Proceeds from issuance of term debt, net 6,963 6,969 28,662 Repayments of term debt (8,805) (6,500) (3,500) Proceeds from/(Repayments of) commercial paper, net (5,977) (37) 3,852 Other (105) Cash used in financing activities (90,976) (87,876) (17,974) Increase/(Decrease) in cash, cash equivalents and restricted cash 24,311 5,624 (195) Cash, cash equivalents and restricted cash, ending balances $ 50,224 $ 25,913 $ 20,289 Supplemental cash flow disclosure: Cash paid for income taxes, net $ 15,263 $ 10,417 $ 11,591 Cash paid for interest $ 3,423 $ 3,022 $ 2,092 See accompanying Notes to Consolidated Financial Statements). 2019 2018 2017 2016 2015 Total net sales $ 260,174 $ 265,595 $ 229,234 $ 215,639 $ 233,715 Net income $ 55,256 $ 59,531 $ 48,351 $ 45,687 $ 53,394 Earnings per share: Basic $ 11.97 $ 12.01 $ 9.27 $ 8.35 $ 9.28 Diluted $ 11.89 $ 11.91 $ 9.21 $ 8.31 $ 9.22 Cash dividends declared per share $ 3.00 $ 2.72 $ 2.40 $ 2.18 $ 1.98 Shares used in computing earnings per share: Basic 4,617,834 4,955,377 5,217,242 5,470,820 5,753,421 Diluted 4,648,913 5,000,109 5,251,692 5,500,281 5,793,069 Total cash, cash equivalents and marketable securities $ 205,898 $ 237,100 $ 268,895 $ 237,585 $ 205,666 Total assets $ 338,516 $ 365,725 $ 375,319 $ 321,686 $ 290,345 Non-current portion of term debt $ 91,807 $ 93,735 $ 97,207 $ 75,427 $ 53,329 Other non-current liabilities $ 50,503 $ 48,914 $ 44,212 $ 39,986 $ 38,10

CONSOLIDATED STATELLINTEOROLLATONS a mizans, bapt number one mich anplaced in thousanda md por share amount) gomb, 2013 20 2019 3 Net sales: Products Services Total net sales 213,882 3 48.291 260.174 226.8473 39.748 288,698 198.834 32,700 229 234 Most of sales: Products Services Total cost of sales 144,996 18.786 181.782 98.392 148.164 15,692 163.756 101.839 128.337 14,711 141,048 88.188 Gross margin Operating expenses: Research and development Selling, general and administrative Total operaling expenses 16.217 18.245 34.462 14.238 16.705 30,941 15.281 26.842 Operating income Other income/[expense). net come before provision for income taxes rovision for income taxes el income 63.930 1.807 65.737 10.401 70.898 2.005 72.903 13, 372 59.5313 61,344 2.745 64 089 15.738 S 48.351 arnings per share S 9 27 11.97$ 11.89 S $ $ hares used in computing earnings per share: Basic Diluted 4.617 834 4 648.913 5.217.242 5.251.692 5.000 109 See accompanying Notes to Consolidated Financial Statements. Dino CONSOUDATED STATLIENTS OF COMPREHENEVE INCOME (in miliona Gap 23, 2019 65.256 2013 59.831 pamba 2017 48,361 ncome r comprehensive hcoma osa): Change in foreign currency translation, net of tax (408) (525) (681) 522 1,315 Change in unrealized gainslosses on derivative instruments, nat of taxe Change in fair value of derivatives Adjustment for net (gains losses realized and included in net Income Total change in unrealized gains/losses on dervative instruments (1,477) (638) 905 (162) 3.802 (3.407) (782) Change in unrealized pains/losses on marketable securities, net of tax: Change in fair value of marketable securities Adjustment for net (sins Mosses realized and included in net Income Total change in unrealized gains losses on markeliable secunies 25 1 (64) 3.827 (3.406) (846) other comprehensive income (loss) comprehensive income 2.781 (3.026) 5 (784 47.567 See accompanying Notes to Consolidated Finance Statements. umentos Chand Gash equivalente 61,713 Accounts receivabio.net Inventories Vendor non-pade receivables Other current stats Total current seis 4,108 22,878 12,352 182,819 25,913 40,388 2.188 3,968 25,809 12,087 131,339 Traurrent assets: Marketable secunies Property, plant and equipment, net Other non-current assets Total non-current assets Total assets 106.341 37,378 32.978 175,697 338,518 $ 170,799 41,304 22,283 234,386 386,725 $ UABUTIES AND SHAREHOLDERS' EQUITY: $ rent liabilities: Accounts payable Other current kabilities Delerred revenue Commercial paper Term debt Total current liabilities 46.236 $ 37.720 5,522 5,980 10,260 105,718 56.888 33,327 5,966 11,964 8.784 115.929 -current liabilities Term debt Other non-current liabilities Total non-current liabilities Total liabilities 91,807 50,503 142,310 248,028 93.735 48.914 142,849 258,578 mitments and contingencies reholders' equity Common stock and additional paid-in capital, 50.00001 par value: 12,600,000 shares authorized: 4 443,238 and 4,754 986 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income foss) Total shareholders equity Total liabilities and shareholders equity 45.174 45,898 (584 90,488 338.518 40,201 70,400 (3.454) 107.147 366.725 $ See accompanying Notes to Consolidated Finance Statements. Appena CONBOX IDATED STATEMENTS OF SMAR MOLHAS QUITY (in men, wepper share soute) Amp 2019 107 1,73 2012 14.047 199 249 Total shareholdere equity, beginning balances Common shock and actional paid in capital Beginning balances Common stock issued Common stock withheld related lo nel share settlement of equity swards Share based compensation Tax benefit from equity awards, including transfer pricing adjustments Ending balances 40,201 781 36 887 889 (2,002) 6,194 (1.488) 4.909 5.443 620 36 887 45,174 40 201 Retained earings Beginning balances Net income Dividends and dividend equivalents declared Common stock withheld related to net share settlement of equity awards Common stock repurchased Cumulative effects of changes in accounting principles Ending balances 70,400 55,258 (14,129) 98.330 59.531 (13.735) 96.364 48,361 (12.803) (581) (33,001) (1.029) (67.101) 2,601 45,898 73.068) 278 70.400 ge 330 Accumulated other comprehensive income loss): Beginning balances Other comprehensive income/loss) Cumulative alects of changes in accounting principles Ending balances 834 (784) (3.454) 2,781 89 (584) (150) (3.026) (278) (3.454) (150) Total shareholders equity ending balance: $ 90,488 $ 107.147 $ 134,047 Dividends and dividend equivalents declared per share or RSU S 3.00 $ 2.72 $ 2.40 Set accompanying Notes to Consolidated Financial Statements