QUESTION 5

Here is a company you probably have maybe kind of heard about just a little bit...... called Apple) The financial statements you need have already been sent out to you separately, in Course Materials, directly UNDER this test.

1. Apple's yearend is close to the end of September, as you can see. Please calculate the current ratio of Apple for both balance sheet years (2020 and 2019). At which yearend was it better?

2020 2019

1. What was the quick ratio at the end of each year? Only the first three current assets should be seen as quick assets.) At which yearend was it better?

2020 2019

1. Calculate the working capital at each yearend. Which was stronger?

2020 2019

1. Find the debt ratio and the corresponding equity ratio for each yearend.

2020 2019

Debt Ratio:

Equity Ratio:

1. Over this period of time, did Apple become more financed by debt, or more financed by shareholders?

1. Apple's stock price is about $135.00 per share right now. That figure is in US dollars, as are all the values that we are using in this Apple analysis.

For their yearend 2020, calculate the price/earnings ratio. Use diluted earnings per share.

1. What was Apple's Profit Margin % in each of the three years for which you have data? (Use Net Income/ Total Net Sales.) Describe the trend you are seeing in this measurement.

2020 2019 2018

1. What was Apple's 2020 Inventory Turnover? (Use Total Cost of Sales/ Average Inventory.) Once you calculate it, turn it into a number of days, and decide whether the result is good or bad. Please remember that 2020 was a leap year.

1. How many dollars of dividends and dividend equivalents did Apple pay out in the year that ended in September, 2020? Also please tell me which financial statement contained this information.