Please answer every question listed. Thank you SO much.
Use the information contained in these financial statements and notes to complete this case. All answers should be for the most current year (September 24, 2016) unless asked otherwise. Many companies show amounts in the thousands or millions - please state amounts as shown on the financial statements. Do not add zeros. You do not need to include dollar signs. Selected financial statements of Apple, Inc. follow. CONSOLIDATED STATEMENTS OF OPERATIONS (In milions, except number of shares which are reflected in thousands and per share amounts) Years ended September 24, September 26 Setembe 27. 2015 Net sales 215,639 5 233.7153 182,795 Cost of sales 131,378 140.089 112.258 Gross margin Operating expenses Research and development Selling, now and administrative Total operating expenses 10,045 14.194 8.067 14329 6.041 11.990 50,024 2500 Operating income Other incom pense.net Income before provision for income taxes Provision for income Not income 62372 15.685 71230 1295 721515 19.121 13973 Earnings per share Base Diluted 835 S 8 315 9.29 5.45 Share used in computing earnings per share: 5470,820 5.500,281 5.753.421 5.793.069 ,085.572 D Cash dividends declared per share 2.18 S 1508 182 CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 24, 2018 September 26, S ASSETS: Current assets Cash and cash equivalents Short-termarketable securities Accounts receivable, less allowances of S53 and 563, respectively Invertones Vendor non-trade receivables Other current assets Total current assets 20.484 46,671 15.754 2,132 13,545 8,283 108,869 21,120 20,481 16,849 2.349 13,494 15,085 89,378 154.065 22,471 5,116 Long-term marketable securities Property, plant and equipment, net Goodwill Acquired intangible assets.net Other non-current assets Total assets 170,430 27,010 5,414 3.206 8,757 321,888 3.893 5,422 290,345 S S LIABILITIES AND SHAREHOLDERS' EQUITY: s Current liabilities: Accounts payable Aconued expenses Deferred revenue Commercial paper Current portion of long-term debt Total current liabilities 37,294 22,027 8,080 8,105 3,500 79,005 35,490 25,181 8,940 8,499 2,500 80,610 Deferred revenue, non-current Long-ter debt Other non-current liabilities Total liabilities 2,960 75,427 36,074 193,437 3,624 53,329 33,427 170,990 Commitments and contingencies Shareholders' equity: Common stock and additional paid-in capital, S0.00001 par value: 12,600,000 shares authorized: 5,336,166 and 5,578,753 shares issued and outstanding, respectively Retained eamings Accumulated other comprehensive income floss) Total shareholders' equity Total liabilities and shareholders' equity 31,251 96,364 634 128,249 321,586 S 27,416 92,284 (345) 119,355 290,345 S CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In millions, except number of shares which are reflected in thousands) Common Stock and Additional Paid-In Capital Shares Amount Accumulated Other Comprehensive Incomel(Loss) Retained Earnings Total Shareholders Equity 5,578,753 27,416 (345) 92,284 45,687 119.355 45,687 979 Balances as of September 26, 2015 Net income Other comprehensive income (loss) Dividends and dividend equivalents declared Repurchase of common stock Share-based compensation Common stock issued, net of shares withheld for employee taxes Tax benefit from equity awards, including transfer pricing adjustments Balances as of September 24, 2016 (12,188) (29,000) (279,609) (12,188) (29,000) 4,262 4,262 37,022 (806) (419) (1,225) 5,336,166 S 379 31,251 S 96,364 S 379 128,249 634 S L. Financial Statement Analysis Ratios - Must show your work for all ratios. Calculate each ratio to three decimal places. (Page numbers are for referencing the formulas in your textbook.) 1. Current Ratio & Profit Margin (pages 561-562, 563,565) (24 Points) a. Calculate the Current ratio. (4) Does this ratio appear favorable or unfavorable? (4) Why? (4) b. Calculate the Profit Margin ratio. (4) Does this ratio appear favorable or unfavorable? (4) Why? (4) Accounts Receivable Turnover and Days' Sales Uncollected.(pages 561, 565) (18 Points) a. Calculate the Accounts Receivable Tumover ratio. (8) b. Calculate the Days' Sales Uncollected ratio. (6) Does this ratio appear favorable or unfavorable? Why? (4 3. Total Asset Turnover (pages 561, 565) (6 Points) a. Calculate the Total Asset Turnover ratio. (6) Debt ratiopages 562, 565) (8 Points) a. Calculate the Debt ratio. (4) What does this ratio tell you about Apple's risk? (4) 5. Debt-to-Equity Ratio (pages 562, 565) (8 Points) a. Calculate the Debt-to-Equity Ratio. (4) b. What does this ratio tell you about Apples' capital structure and risk? (4) Market Price, Dividend Yield & Price-Earnings Ratio (pages 564, 565) (20 Points) What is the current market price of the stock? This is not in the financial statements provided. It is noted on Apple's website or go to www.yahoofinance.com to get the quote. The ticker symbol for Apple is AAPL. Price (4) Date found: b. Calculate the Dividend Yield. (4) c. Calculate the Price-Earnings Ratio. (4) d. If analyst give a range of higher than 20-25 for a stock to be considered overpriced and less than 5-8 for a stock to be considered underpriced, how is Apple doing? (6) Inventory turnover & Days' Sales in Inventory (page 561, 565) (16 Points) a. Calculate the Inventory turnover ratio. (6) b. Calculate the Days' Sales in Inventory ratio. (6) c. Is this favorable or unfavorable? Why? (4) b. Calculate the Days' Sales in Inventory ratio. (6) c. Is this favorable or unfavorable? Why? (4) II. Summary (20 Points) Your superior asks you to analyze Apple's financial condition (liquidity, efficiency, solvency, profitability) based on the financial statements and ratios presented in this case. Would you recommend it as a worthy investment (yes or no)? Support your opinion using five answers from part I (#1-7) above
