Question 1).

Use the photos provided to answer the chart

RATIO & FINANCIAL MEASUREMENT CALCULATIONS
RATIO	FORMULA	CALCULATIONS
		2017
PROFITABILITY RATIOS
Gross Profit Margin
EBIT
EBIT Percentage to Sales
Net Profit Margin
Return on Equity
Return on Assets
Asset Turnover
LIQUIDITY RATIOS
Current Ratio
Quick Ratio
Debt-to-Equity Ratio
MANAGEMENT PERFORMANCE RATIOS
Inventory Days on Hand
Inventory Turnover

APPLE INC. Comparative Income Statements For Years Ended September 24,2016,and September 30,2017 (In millions, except per share) Dollar Change Percent Change Sep-17 Sep-16 215,639 $ Net Sales 229,234 $ 13,595 6.300 $ $ 131,376 $ Cost of sales 9,672 141,048 7.360 Gross margin 88,186 84,263 3,923 4.660 10,045 $ Research and devel opment 11,581 1,536 15.290 Selling,general and administrative 14,194 $ 15,261 7.520 1,067 Total operating expenses 26,842 $ 24,239 $ 2,603 10.740 61,344 $ 60,024 $ Operating income 1,320 2.200 $ Other income, net 2,745 1,348 1,397 103.640 61,372 $ $ Income before provision for income taxes 64,089 2,717 4.430 $ Provision for income taxes $ 15,738 15,685 53 0.340 45,687 $ $ Net income 48,351 2,664 5.830 APPLE INC Consolidated Balance Sheet For Years Ended September 24,2016 and September 30,2017 (In millions, except per share) Common-Size* Percents 30-Sep-17 24-Sep-16 30-Sep-17 24-Sep-16 ASSETS: Current Assets: 6.370% 14.510% Cash and cash equivalents 5.410% 20,289 20,484 14.360% Short -term marketable securities 46,674 53,892 4.900% 17,874 $ Accounts receivable 4.760% 15,754 0.660% $ Inventories 1.290% 4,855 2,132 4.210% $ 4.740% Vendor non-trade receivables 17,799 13,545 2.570% Other current assets 13,936 $ 8,283 3.710% 33.220% 34.280% Total current assets 128,645 106,869 Long-tern marketable securities Property, plant and equipment, net Goodwill 194,714 $ 51.880% 52.980% 170,430 8.400% 9.000% 33,783 27,010 2.680% 1.520% S 5,717 5,414 Acquired intangible assets, net $ 0.610% 1.000% 2,298 3,206 2.720% $ Other non-current assets 10,162 $ 8,757 2.710% 100% 100% Total assets S 321,686 375,319 LIABILITIES: Current liabilities 11.590% Accounts payable 49,049 13.070% 37,294 Accrued expen ses 6.860% 6.850% 25,744 22,027 2.510% Deferred revenue $ 2.010% 7,548 $ 8,080 Commercial paper 2.520% 11,977 $ 3.190% 8,105 1.090% 6,496 $ 1.730% Current portion of long-term debt 3,500 23.450% $ 26.860% Total current liabilities 100,814 $ 79,006 0.910% Deferred reven ue, non current 0.760% 2,836 2,930 Long-term debt Other non-current liabilities 23.450% 97,207$ 25.900% 75,427 10.770% 11.210% 40,415 36,074 241,272 $ 64.280% 60.130% Total liabilities 193,437 SHAREHOLDERS' EQUITY 35,867 $ 9.710% 31,251 9.560% Common stock Retained earnings 26.200% 29.960% 98,330 96,364 $ Accumulated other comprehensive income/(loss) (150) $ -0.040% 0.110% 364 $ 35.720% 39.870% Total shareholders" equity 134,047$ 128,249 100% 375,319 $ 100% Total liabilities and shareholders' equity 321,686