Problem 1: Dupont Financial System ANALYSIS (5%) Examine the financial statements of Apple to perform a DuPont analysis. Answer the below questions. 1. What is the Profit Margin? What does it mean? 2. What is the Asset Turnover ratio? What does it mean? 3. What is the financial leverage? What does it mean? 4. What is the return on equity based on the Dupont Analysis and on the ROE ratio from week 4? 5. Why do you think Apple has such a high ROE? Whats driving it so high?
STATEMENTS OF FINANCIAL POSITION (FOR THE YEARS 2013 TO 2015) 2013 350 800 (177) 173 5 5 CompuTech Inc. Statements of Income For the years ended December 31 in thousands of s) 2015 2014 Revenue 420 Cost of sales (406) (209) Gross profit 394 211 Other income 5 5 Distribution costs Salaries (80) (60) Commissions (5) Travelling (5) Advertising (10) Depreciation/amortization (40) (20) Total distribution costs (140) (91) Administrative expenses Salaries (60) Leasing (10) Depreciation/amortization (40) (20) Total administrative expenses (110) (65) Finance costs (30) (14) Total other income/expenses (275) (165) Profit before taxes 119 Income tax expense (42) Profit for the year 77 (38) | | gggg ED233E podla 80* 3| (135) (13) W 40 e o ] Du LO 2001 25 CompuTech Inc. Staternents of Compruhensive Income For the years ended December 31 (in thousands of s) 2015 2014 Profit for the your 77 33 Other comprehensive income/(loss) Exchange differences on translating foreign operations Cash flow hedges Gains on property revaluation Other comprehensive income) for the year.net of tax Total comprehensive income for the year 77 25 2014 201. CompuTach Inc Statements of Changes in Equity For the years ondod December 31 in thousands of s) 2015 Common shares Balance at beginning of year 100 Common shares issued 70 Dividend teluvestment and share purchase plan Shares issued on exercise of stock options Balance at end of year 170 Retained earnings Halance at beginning of your Profit for the war 100 100 100 100 25 14 27 135 58 Divklands Talance at end of year Contributod surplus Balance at beginning of year Stock-based compensation Options exercise Balance at end of year Total shareholders' equity 305 158 125 npuTech financial statements.pdf - Adobe Acrobat Reader DC (64-bit) dit View Sign Window Help Tools CompuTech financi... x 1 3 / 3 19 E 2014 2013 210 170 799 132 68 132 21 11 CompuToch Inc Statements of Financial Position As at December 31 in thousands of 5) 2035 Assets Nuw- Property, plant, and equipment 560 Goodwill Other intang Accumulated depreciation/amortization (158) Total area 302 Can Inventores 110 Trade receives Prepaid expenses 10 Ciah and can wuivales 25 Worale 637 Equity and liabilities Equity Share capital 170 Releaming 1:35 Contributed surplus Total equity 305 Lab NON- Long term borromes 200 ammes Trade and other payables 47 Short-term borrowing 3 Current portion of long-term horrowing Tale as 132 Total liabilities 332 Totul equity and liabilities 637 26 100 5 100 25 158 123 50 60 35 17 30 MIL 112 110 268 237 1 Q w
