PLEASE HELP
1. Current Ratio (show your work)
- Calculate the current ratio
- does this ratio appear favorable or unfavorable? Why?
2. (Show your work) a. calculate the accounts receivable turnover ratio.
b. calculate the days sales uncollected ratio. does this ratio appear favorable or unfavorable? Why?
3. (Show your work) a. calculate the inventory turnover ratio
b. calculate the days sales in inventory ratio does this ration appear favorable or unfavorable? Why?
4. Calculate the total asset turnover ratio
5. a. Calculate the debt ratio (show your work)
b. what does this ratio tell you about Apple's risk
Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) Years ended Net sales: Products Services Total net sales \begin{tabular}{rrrrr} $316,199 & $ & 297,392 & $ & 220,747 \\ 78,129 & & 68,425 & & 53,768 \\ \cline { 1 - 2 } \cline { 5 - 6 } & & & 365,817,515 \end{tabular} Cost of sales: Products Services Totai cost oi saies Gross margin \begin{tabular}{rrr} 201,471 & 192,266 & 151,286 \\ 22,075 & 20,715 \\ \hline 223,546 & 18,273 \\ \hline 170,782 \\ \hline \end{tabular} Operating expenses: Research and development Selling, general and administrative Total operating expenses \begin{tabular}{rrr} 26,251 & 21,914 & 18,752 \\ 25,094 \\ \hline 51,345 \\ \hline \end{tabular} Operating income Other income/(expense), net Income before provision for income taxes Provision for income taxes Net income \begin{tabular}{rrr} 119,437 & 108,949 & 66,288 \\ (334) & 258 & 803 \\ \cline { 2 - 3 } & 109,207 & 67,091 \\ 19,300 & 14,527 \\ \hline \end{tabular} Earnings per share: Basic Diluted Shares used in computing eamings per share: Basic Diluted 16,215,96316,325,81916,701,27216,864,91917,352,11917,528,214 See accompanying Notes to Consolidated Financial Statements. Apple Inc CONSOLDATED BALANCE SHEETS Sae bocompanying Wotes to Consclideled Finalscial Statemrents. Appot ine. For the sale of third-party products where the Company obtains control of the product belore transterring it to the customer, the Company recognizes revenue based on the zross amount biled to customers. The Compary considers multiple factors when determining whether it obtains control of third-party products, including evaluating it it can establish the price of the product retains inventory risk for tanglble products or has the responsbility for ensuring acceptability of the product. For third-party Company does not obtain control of the product belore Iranslerring it io the customer. Therelore, the Company acoounts for tuch sales on a nes basis by rocogrizing In Services not walas only the cornisision in redaints The Company records revenue net of taxes colfocted trom customers thet are remaitid io goverreiental aulihonitied, with the oolected taxes recorded wathin other currane llabilities unsil remitted to the relevant government authortty. Sharo-Baned Compententlon The Company penerally maesures share-baseo compensabon basad on the ciosing price of the Company's common slock on Furthar infocmation regaiding ahare-based compensaton cen be found in Wole 9 , "Doneflt plana." Earnings Per Share The following teblo showe the eompuitation of basic and dithind naminne por ehare for abe2. 2021 and 2000 inet inoome in mitions and shayes in thousands): The Company applias the trensury thock method to detemire the olittve oflect of patertinilfy disthve nocuraios Cash Equlvalents and Marketable Securties All highly liquid investmonts wihh maturitios of three months or less at the date of purchase are classilled as cash equlvalerts. contractual maturity date The Company's investments in markelable equity securities are cisssilied based on line naiture of the securlies and their availability for use in currant opestationa. The cost of securities sold is determined using the specific identification method. Inventories Inventorles are measured using the first-in, first-out method. Apple ine. CONSOLOATED STATEMENTS OF OPERATIONS (In miltions, excopt number of thares which are reftected in thousands and per share amounts) Net saies: Products Sorvicet Tobil net sales Cost of sales: Products Services Total cost of tales Brows margin \begin{tabular}{rrr} 201,471 & 192,266 & 151,286 \\ 22,075 & 20,715 \\ \hline 223.546 & 18,273 \\ \hline 170,792 & 212,961 \\ \hline \end{tabular} Operating expenses: Research and development Selling, general and administrative Total operating expenses \begin{tabular}{rll} \hline 26,251 & 21,914 & 18,752 \\ 25,094 & 21,973 \\ \hline 51,345 \\ \hline \end{tabular} Opernting income Other income/(expense), net Inoome belore provision for income taxes Provision for income taxes Net income Eaminge per ehare: Basic Diluted Shares used in computing eamings per share: Basic Diented 16,215,96316,325,81916,701,27216,384,91917,352,11917,528,214 See accompanying Notes to Consolidated Financial Statements. Apple ine. CONSOUOATED AALANUE SHEETS (An mifions, except number of theree which are rulocted in thousande and par velse) Assets: Current estets: Canch and eash equivalents Matumale necurites Acoounts recelvable, not Irvonkitine Vendor non-trade rocevables Oher ourrent assets Total cument assets \begin{tabular}{rrr} 35,645 & 5 & 34,940 \\ 24,658 & 27,699 \\ 29,154 & 26,278 \\ 4,945 & 6,580 \\ 32,748 & 25,2208 \\ 21,223 & 14,111 \\ \hline 135,405 & 134,636 \end{tabular} Non-current assete: Mnicutable securitios Property, plart and equipraent, net Other non-cument assets Total non-current assets Total eseets \begin{tabular}{rr} 120,805 & 127,377 \\ 42,117 & 39,410 \\ 54,438 & 48,849 \\ \hline 217,350 & 216,166 \\ \hline 535,755 & 55,002 \\ \hline \end{tabular} UABILTES AND SHAAEHOLDERS EQUTY: Curent liabelities: Accounte payable Other cument Eablites Delarted revanue Commerclal paper Term deht Tolal current liabilties Non-currert lablibes: Tem debe Qther non-curent llabdilies Total non-curtont Aabilites Total labilaies Cornmitments and contlinguholes Wharoholders' ecuby? Connon atock and addtional paid th oepitat, 50.00001 par value: 50,400,000 shares See acoorponying Nolas to Condolisabd Financlal Beatemesta Appie inc. CONSOLDATED STATEMENTS OF SHAAEHOLDERS' EOUTY (In millions, except per share amounts) Total shareholders' equity, begirning ba ances Common stock and additional peid-in capitat Beginning balances Common stock ietund Common stock withheid related to net share settlement of equity awards Share-based compensation Ending balances \begin{tabular}{ccc} (2,971) & (2,627) & (2,250) \\ 9,280 & 8,108 & 6,975 \\ \hline 64,849 & 57,365 \\ \hline \end{tabular} Retained eamings(Acournutated desicit): Beginuing balances Not income Dividends and dividend oquivalents declared Common stock withheld relacod to not share sottioment of equity awards Comman slock repurchased Cumulabve etlect of change in accounting principle Ending bajances Accumulated other comprehenslvo incomofloss): Beginning balances Othar comorehenstye incomerlloss) Cumulaste effect of change in docounting princpio Ending balances Total shareholicers' equity, onding balancos For the sale of third-party producte where the Company obtains contral of the product belore transteming it to the oustomer, the Compary recognizes revenue becod on the grost amount biled lo oustomerk. The Cornpary considers meltipie tactors when determining whether at obtains control of third-panty products, including evaluafing it it can establish the price of the product, retains imventory risk for targlble products or has the responelblity for ensuring accephablity of the product. For third-party Company does not obtein control of the product belore transloning it lo the oustomer. Thereform, the Compary acoounts for such The Comparty records revente net of thest colicoted trom cuslomers thal are rermitled to govemmentai audharitues, with the collocted taxes recorded within other curnent liabilitioe until remithod to the felgvans govemment authority. Sharme-Baned Compennotion The Company genecally measures share-based compensabion based on the ciosing price of the Compary's common stocik an Earninge Per Share miliona and thares it thousands? The Compary applios the troesury etock method to detemine the dilase s moct of potontially dilusve securtios. Cash Equivalents and Marketable Becurhles Al highy liquid investments with makribles of three months or less at the date of purchase are classifled as cash equivalents. avaliabily for use in cutrent operations, The cost of securises sold is determined using the specific identifcation tinethod. Inventories Inventories are measured using the first-ln, frrat-out method. 5=5
