Prepare commentary for profitability, solvency, liquidity, and conclusion and explain which company performed the best based on the numbers. The $2021$ financial statements used to calculate these ratios are available in the Investor Relations sections of the Apple and Microsoft websites.

Apple Microsoft

$10/29/2021$ for $9/25/20217/29/2021$ for $6/30/2021$

Earnings per Share of Common Stock $($basic $-$ common$)$ As given in the income statement $$5\mathrm{.}67$ $$8\mathrm{.}12$

Current Ratio Current assets $$134,836=1\mathrm{.}07$ $$184,406=2\mathrm{.}08$

Current liabilities $$125,481$ $$88,657$

Gross Profit Rate Gross profit $$152,836=41\mathrm{.}8\%$ $$115,856=68\mathrm{.}9\%$

Net sales $$365,817$ $$168,088$

Profit Margin Net income $$94,680=25\mathrm{.}9\%$ $$61,271=36\mathrm{.}5\%$

Net sales $$365,817$ $$168,088$

Inventory Turnover Cost of goods sold $$212,981=24\mathrm{.}7$ $$52,23223\mathrm{.}1$

Average inventory $$8,611$ $$2,266$

Days in Inventory $365$ days $365=15365=16$

Inventory turnover $24\mathrm{.}7$ days $23\mathrm{.}1$ days

Accounts Receivable Turnover Net credit sales $$365,817=17\mathrm{.}3$ $$168,088=4\mathrm{.}8$

Average net accounts receivable $$21,199$ $$35,027$

Average Collection Period $365$ days $365=21365=76$

Accounts receivable turnover $17\mathrm{.}3$ days $4\mathrm{.}8$ days

Asset turnover Net sales $$365,817=1\mathrm{.}08$ $$168,088=0\mathrm{.}53$

Average total assets $$337,445$ $$317,545$

Return on Assets $($ROA$)$ Net income $$94,680=28\mathrm{.}1\%$ $$61,271=19\mathrm{.}3\%$

Average total assets $$337,445$ $$317,545$

Debt to assets ratio Total Liabilities $$287,912=82\mathrm{.}0\%$ $$191,791=57\mathrm{.}5\%$

Total Assets $$351,002$ $$333,779$

Times$-$Interest Earned Ratio Net income $+$ interest expense $+$ income tax expense $$111,852=42\mathrm{.}373,448=31\mathrm{.}3$

interest expense $$2,6452,346$

Dividend Yield Dividend per share of common stock $($Yahoo Finance $(12/10/2023)$ $$0\mathrm{.}96=0\mathrm{.}5\%$ $$3\mathrm{.}00=0\mathrm{.}8\%$

$($Please follow the Course Project instructions to calculate the current dividend yield.$)$ Market price per share of common stock $($Yahoo Finance $(12/10/2023)$ $$195\mathrm{.}71$ $$368\mathrm{.}80$

Return on Common Stockholders' Equity $($ROE$)$ Net income $-$ preferred dividends $94,680=147\mathrm{.}4\%61,271=47\mathrm{.}1\%$

Average common stockholders' equity $64,214\mathrm{.}50130,146\mathrm{.}00$

Free cash flow Net cash provided by operating activities minus capital expenditures minus cash dividends $$104,038=$ $$50,131$ $$76,740=$ $$39,597$

$$53,907$ $$37,143$

Price$-$Earnings Ratio Market price per share of common stock as of $9/24/2021$ for Apple and $6/30/2021$ for Microsoft $$146\mathrm{.}92=173$ $$270\mathrm{.}90=121$

$($Please see the Course Project instructions for the dates to use for this ratio.$)$ Earnings per share $$0\mathrm{.}85$ $$2\mathrm{.}24$