QUESTION 31

(a) Accounts Receivable Turnover and Days Sales Uncollected (text book pages 501-502, 505) a. Calculate the Accounts Receivable Turnover ratio. (SHOW YOUR WORK. Calculate ratio to three decimal places.) b. Calculate the Days Sales Uncollected ratio. (SHOW YOUR WORK. Calculate ratio to three decimal places.) c. Does this ratio appear favorable or unfavorable? Why? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). P 0 WORDS POWERED BY TINY 18 points

(b) Inventory Turnover and Days Sales in Inventory (text book pages 501-502, 505) a. Calculate the Inventory Turnover. (SHOW YOUR WORK. Calculate ratio to three decimal places.) b. Calculate the Days Sales in Inventory. (SHOW YOUR WORK. Calculate ratio to three decimal places.) c. Does the Inventory Turnover appear favorable or unfavorable? Why? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). P 0 WORDS POWERED BY TINY 18 points

(c) Total Asset Turnover (text book pages 502, 505) Calculate the Total Asset Turnover ratio. (SHOW YOUR WORK. Calculate ratio to three decimal places.) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). P 0 WORDS POWERED BY TINY 7 points

(d) Debt Ratio: (text book pages 502, 505) a. Calculate the Debt ratio. (SHOW YOUR WORK. Calculate ratio to three decimal places.) b. What does this ratio tell you about Apple's risk? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). P 0 WORDS POWERED BY TINY 8 points

(e) Debt-to-Equity Ratio: (text book pages 502-503, 505) a. Calculate the Debt-to-Equity ratio. (SHOW YOUR WORK. Calculate ratio to three decimal places.) b. What does this ratio tell you about Apple's capital structure and risk? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). P 0 WORDS POWERED BY TINY 8 points

(f) Market Price, Dividend Yield & Price-Earnings Ratios (pages 504, 505) a. What is the current market price of the stock? This is not in the financial statements provided. It is noted on Apples website or go to www.yahoofinance.com to get the quote. The ticker symbol for Apple is AAPL. Give the current market price and the date you found that price. b. Calculate the Dividend Yield. (SHOW YOUR WORK. Calculate ratio to three decimal places.) c. Calculate the Price-Earnings Ratio. (SHOW YOUR WORK, use Basic Earning per Share. Calculate ratio to three decimal places.) d, If analysts give a range of Price-earnings ratio 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? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). P 0 WORDS POWERED BY TINY 16 points Summary:

(g) Your superior asks you to analyze Apples financial condition (liquidity, efficiency, solvency, profitability) based on the financial statements and ratios presented in this case. Would you recommend it as a worthy investment (yes or no)? Support your opinion using five answers from questions #29 -36 above. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). P 0 WORDS POWERED BY TINY 20 points Click Save and Submit to save and submit. Click Save All Answers to save all answers.

Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS On millors, optrumber of shares which are relected in thousands and per shore amounts) Bapter 28 September 28 September 23, 2020 2010 2018 5 Notes: Products Services Totalt 220,747 $ 58.70 274,515 213.2005 297 45.291 3.700 280.174 206. 151,26 18.273 160.00 104,956 1646 18.786 181,182 190 148.164 15.502 163790 101 Goet gt pules Products Services Total cost of Gross margin Operating Pearch and development Seling.gracal and administrative Total operating perces Opening incre Other incompetent Income before provision for Income Provision for incontes Nut income 18,750 19,916 38.000 18.217 18 245 3452 14.20 16. Os 30. 86,286 80s 67001 9.680 57,411 83.330 1.807 737 10.491 56 256 S 70. 2005 72,000 12.12 56,531 mings per te 301 $ 2.995 2.97 3.00 2.50 Deulod Share and in computing suming per share: Basic 17.322,119 Duted 17,629.254 Sue comparing Consolidated Financial 19,121,510 1.56.661 20.000,436 Apple nel 2020 Fom 10K 131 Apleine CONSOLIDATED BALANCE SHEETS in millions, repuber of share which are reflected in thousands and paralel September 200 Seber 2008 ASSETS: $ Current Cash and cash Quilts Marketable securities Accounts receivable, niet Inwes Vendor non-do Other current Totalcument assets 38,016 $ 52,90 16,120 4,061 21,325 11,264 143718 51718 22.826 4.106 22.878 162.819 Non-cument Marketable securities Property, plant and equipment, net Other curs Total non-cumon Total 100,7 35,786 42.622 180,175 23 106.21 37 378 32.78 17 31518 LIABILITIES AND SHAREHOLDERS' EQUITY: Current Accounts payable Oheroument abilities Defender Carucippu Term debt Total current abilities 220 684 6.648 4,986 8,779 103,29 37,720 5.192 5.900 10.200 106.710 Non-current Turm date Other non-current Total cuore Total abilities 39.00 5430 153,157 20.50 91,07 5050 142.310 . Comments and can Shareholders' equity Carrmon stock and additional paid in capital, 80.00001 par value 50,400.000 shares authorized 16,978,763 and 17,772,845 shares issued and outstanding respectively Pandang Accumulated the comprehensive income Total shareholders' equity Total abilities and shareholders' equilty Sergio Correder 30.770 14.956 (406) 45,17 45.00 1584 4 201510 30 303 AM Apple Tree For OKI Apple Inc. CONSOLIDATED STATENENTS OF SHARDHOLDERS' EQUITY ihn milions, except per share amounts) Yousanded Beptember 2, September ser 2020 2010 2016 $ 90,488 107.1473 100 Total standere uity beginning blues Common stock and anal poid-in capital Beginning barcos Commons Common stock withold mined to not store serant of equity Share-based commission Ending balances 45,174 880 40.201 781 36.87 800 (1.77 12,250 6,95 50.779 2,000 4,194 45.174 40201 45, 57411 70.400 56.256 (14.12 50 113.735 Retained Beginning balance Net income Dividends and dividend equivalent declared Common lock with led to not share soment of equity ada Correton lock purch Curruisine eledes at changes in accounting principle Ending balances kader comprehensive income Beginning balances Other comprehensive income! Cumulative cols of changes in accounting principles Ending balance 11,600 (72,5160 (136) 14.966 (1.02 (87,101) 2.501 45 18 073.00 2ra 70,400 (150 1584) 42 2.781 89 (584 1270 1.450 90483 107,147 Total shareholders'yanding bal 65,3305 Dividence and dividend equivalent declared per share or RSU 0.746 5 Se accompanying Netto Corseddated Financial Statement 0.75 0.69 Apple Tree For OKI Apple Inc. Notes to Consolidated Financial Statements Note 1 - Summary of Significant Accounting Policies Besla al Presentation and Preparation The consolidated financial statements include the accounts of ople Inc and its wholly owned subsidiaries collectively anley of the Company intercompany accounts and transactions have been eliminated in the opinion of the Company's management, the consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for tar financial statement preservation. The preparation of these consolidated financial statements and accompanying notes in conformity with u.8. generally accepted accounting principles requires management to make estimates and assumption that elect the amounts reported. Actual results could offer materially from those estimates. Certain prior period amounts in the coded financial statements and accompanying notes have been relied to conform to the current periods pron The Company's fiscal year is the 52- or period that ends on the last Saturday of Setember, The Company's focal years 2020, 2019 and 2018 spanned 52 weeks each. An additional work is included in the first cal quarter weryths or ste years to resign the Company's focal quarters with older res Une chwisted, mences to partyears, quarters, months and periods refer to the Company's scal years ended in September and the dated stor months and periods of those focal years Common Stock split On August 28, 2020, the Company affected a four barna stock to shareholders of record as of August 24, 2020. All share estadounit rRSU) and per share or per RSU information has been retroactively adjusted to reflect the stock split Recently Adopied Accounting Pronouncements Leases At the beginning of the first quarter of 2000, the Company adopted the Frencial Accounting Standarde Bourd's the TASS Accounting Standards Update AS No. 2016-c. Toe 2 TASU 2016-02"), and scral Assad och and update the guidance in ASU 2016-2 (collectively. therwisandard), which made accounting for to Increase transparency and comparably by moorings wat and be for sporting and deding kay information about losing aangements. The Company stopied the names standarditing the modified retrospective transition method, under which amounts in prior periods presented were not related for dig the time of adoption, the Company elected to not whether or combination, and initial direct cosis Upon adoption the Company recorded $75 bilion right (ROU) and $2.1 billion and on Condensed Consolidated Balance Sheet Hedging At the beginning of the quarter of the Company adapted FASE ASU No. 2017-12. Derivative and Hedge Top 18 Yargeted improvement to Accounting for Hedging Activos CASU 2017-12) ASU 2017-12 expands component and tai walde hedging species the presentation of the act of hedging instruments, eliminates the separate measurement and pritional hedge ineffectiveness and updates declosure requirements related to hedging. The Company adopted ASU 2017-12 tizing the modified frospective transition method. Upon adoption, the Company recorded a $138 milion increase in accumulated the comprehensive incontroC) and a corresponding decrease in retained earnings in the Condensed Cormicided Statement of Shareholders Equity Advertising Coats Advertising costs and as loured and included in garal and administrative Share-Based Comparation The Company penerally measures share-based compensation based on the closing price of the Company's common stock on the date al grant, and recognizes purse on a straight line basis for its estimate of equity awards that wil ultimately yet Further information regarding share-based compensation can be found in Norte 0. Senefit Plans Apple Inc. For OKIM Earnings Per Share The following while shows the computation of basic and diluted comings per share for 2000, 2019 and 2018 net income in milions and share in thousands 2019 Numerator Net income 574115 562565 2011 Denom Weighted average basic shares outstanding 17.252,119 18.471,336 10,121.510 Eroot of dilutive securities 175,096 124,315 Weighted average died shares 17.628,214 18.585,651 20.000495 Basic aming per share 8.31 2.90 8.00 Diluted aming per share 3.25 2.97 $ The Company plus the reasy stockathod to hermine the dative effect of potentially the soutie. Potentially dutive presenting 2 million shares of common stock were excluded from the computation of duted earnings per are for 2019 because her affect would have been adduve. Cash Equivalents and Maritable Securities All Nighty Biquid imasiments with matures of three months or less at the date of purchase and disted crash equwwarta. The Company's mostres in marketable de curtos e bandited and accounted for severe. The Company does markedet me what shoe-m or long-lambdach na nying contractual matury Urdained on marketable del cred as before are recognized in other comprensivo Coch. The Company's main may we are cod besed on the nature of the securities and the waliability for use in cur operation. The Company's marketable equity Secuies are measured at fair walu w gains and recoged in other incomparate The cost of securities sold is determined using the specification method Inventories mentories are measured using the entirst-out method Property, plant and Equipment Depreciation on property, plant and equipment is recognized on a straighine basis over the estimated well as of the assets. which for buildings is the lesser of 40 years or the remaining He of the building between one and five years for machinery and quinient, including product tooling and manufacturing process equipment and the shorter of lease term or a life for Weld improvernos Capitalized costs led to internal use software are amortized on a straight-in basis over the maled se lives of the assets, which sage from the seven years. Depreciation and amortization pense on property and equipment was $2.7 bilion, $11.3 billion and 39.8 bilion during 2020, 2018 and 2018, respectively Non-cash investing activities olving property, plant and equipment resulted in a rather turta payle and other current obfes at 12:00 bilion and $3.4 billion during 2013 and 2010, napedively Aspere. For K3