QUESTION 1

1. For all of the following questions, refer to the following table, which gives financial information for Apple for fiscal year 2002 (in millions):

Sales	$5,742	Cash (includes marketable securities)	$4,337
Cost of Sales	4,139	Accounts Receivable	565
Gross Profit	1,604	Current Assets	5,388
Net Income	65	Total Assets	6,298
Operating Cash Flow	89	Current Liabilities	1,658
		Total Liabilities	2,203
Sales (fiscal year 2001)	5,363	Total Equity	4,095
Net Income (fiscal year 2001)	-25	Total Assets (fiscal year 2001)	6,021
		Accounts Receivalbe (fiscal year 2001)	466

In Apple's 2002 common-size income statement, gross profit is equal to:

	a.	4.1%
	b.	24.7x
	c.	100.0%
	d.	27.9%

QUESTION 2

In Apple's 2002 common-size balance sheet, total liabilities are equal to:

	a.	35.0%
	b.	53.8%
	c.	38.4%
	d.	100.0%

QUESTION 3

The quick ratio for Apple in 2002 is:

	a.	244.6%
	b.	325.0%
	c.	295.7%
	d.	261.6%

QUESTION 4

The operating cash flow ratio for Apple in 2002 is:

	a.	2.1%
	b.	1.7%
	c.	136.9%
	d.	5.4%

QUESTION 5

The 2002 receivables turnover for Apple is:

	a.	8.0x
	b.	34.1%
	c.	9.8%
	d.	11.1x

QUESTION 6

What is the debt ratio for Apple for 2002?

	a.	26.3%
	b.	8.7%
	c.	53.8%
	d.	35.0%

QUESTION 7

What is the debt to equity of Apple for 2002?

	a.	42.2%
	b.	31.7%
	c.	35.0%
	d.	53.8%

QUESTION 8

What is the return on assets for Apple for 2002?

	a.	91.2%
	b.	1.1%
	c.	0.3%
	d.	1.0%

QUESTION 9

Using the Du Pont Model, Activity is:

	a.	1.4x
	b.	93.2%
	c.	1.1%
	d.	1.6%

QUESTION 10

Which of the following ratios is part of the Du Pont Model?

	a.	Operating Cash Flow Ratio
	b.	Dividend Payout
	c.	Return on Equity
	d.	Current Ratio