PLEASE HELP
7. a. Calculate the debt-to-equity ratio (show your work)
b. what does this ratio tell you about Apple's capital structure and risk?
8. a. What is the current market price of the stock? (Give the date that you found this price).
(This is not in the financial statements provided.) It is noted on Apple's website or go to wwwyahoofinance.com to get the quote. The ticker symbol for Apple is AAPL.
- Calculate the Dividend Yield. (SHOW YOUR WORK. Calculate ratio to three decimal places.)
- Calculate the Price-Earnings Ratio. Use Basic Earnings Per Share. (SHOW YOUR WORK. Calculate ratio to three decimal places.)
- If analysts 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?
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 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
