ratio analysis for the most recent fiscal year and the previus year, Appe inc.

Requirement 2-Ratio analysis for the most recent fiscal year and the previous year Liquidity Analysis Current Ratio Acid-test Ratio Inventory turnover Days' sales in inventony Long-Term Solvency Analysis Debt Ratio Profitability Analysis Rate of return on total assets Rate of return on common stockholder's equity Most recent Fiscal Year Previous Fiscal Year Ending 9/30(2017 Ending gne r20% 1of2 Requirement 2: Ratio Analysis (a) Using the assigned company's financial statements compute the following ratios for the most rece nt year and e previous year (use the textbook for ratio formula, do not use the internet): 1. Current ratio 2. Acid-test ratio 3. Inventory turnover 4. Days' in sales in inventory 5. Debt ratio 6. Rate of return on total assets 7. Rate of return on common stockholder's equity 8. Price/earnings ratio* 9. Free Cash Flow (use Cash Flow statement-Net Cash provided by Operating Activities minus net payments f capital acquisitions minus Dividends paid. This is a dollar amount. Cash Enter your results in the financial analysis chart. Round all computations to two decimal place (except Free Flow). Refer to the text for proper presentation. Note: you will need 3 years of balance sheets to complete the above. Include the previous year's balance sheet with the printed financial statements Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) Years ended September 29, 2018 2016 2017 Net sales Cost of sales 215,639 31,376 84,263 265,595 S 163,756 101,839 229,234 141,048 88,186 Gross margin Operating expenses: 10,045 14.194 4.239 11,581 15.261 26,842 Research and development Selling, general and administrative 14.236 16,705 30,941 Total operating expenses 60,024 1,348 61,372 15,685 45,687 61,344 2,745 64,089 15,738 Operating income Other income/(expense), net Income before provision for income taxes Provision for income taxes Net income 70,898 2,005 72,903 13,372 59,531 S 48.351 $46 83 Earnings per share 8.35 8.31 12.01 9.27 $ 9.21 $ Basic Diluted 11.91 $ Shares used in computing earnings per share 5,217,242 5,251,692 5,470,820 5,500,281 4,955,377 5,000,109 Basic Diluted See accompanying Notes to Consolidated Financial Statements Apple Inc. 1 2018 Form 10-K 1 38 Apple Ine CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) Years ended 2016 2017 2018 45,687 48,351 $ 59,531 $ Net income Change in foreign currency translation, net of tax effects of S(1), $(77) and $8, 75 224 (525) Change in unrealized gains osses on derivative instruments Change in fair value of derivatives, net of tax benefit/(expense) of $(149), $(478) Adjustment for net (gainslosses realized and included in net income, net of tax Total change in unrealized gainslosses on derivative instruments, net of tax 1,315 523 and $(7), respectively (1,477) (1.477)41) 382 905 expense(benefit) of $(104), $475 and $131, respectively (734) (162) Change in unrealized gains/losses on marketable securities: Change in fair value of marketable securities, net of tax benefit (expense) of 1,582 (782) $1,156, $425 and $(863), respectively (3,407) Adjustment for net (gains losses realized and included in net income, net of tax 56 ,638 (64) (846) expense/(benefit) of $21, $35 and $(31), respectively Total change in unrealized gains/losses on marketable securities, net of tax (3,406) (784) 47,567 S 979 46,666 (3,026) 56,505 $ Total c e income See accompanying Notes to Consolidated Financial Statements Apple Inc CONSOLIDATED BALANCE SHEETS Iin millions, except number of shares which are e in thousands and par al ASSETS Current assets: Cash and cash equivalents Marketable securitios Accounts receivable, net 25.913 23.186 17 874 Vendor non-trade receivables Other current assets 7,799 3.936 12.087 31.339 Total current assets Marketable secunities Property. plant and equipment, net Other non-current assets 94 714 3.783 22.283 246.674 Total non-current assets 375.319 Total assats LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilitios: Accounts payable Other current liabilities Deferred revenue Commercial paper Term debt 30 551 7,548 11,977 6,496 100,814 7,543 11,964 8,784 116.866 Total current liablities 2,797 93,735 45.,180 141,712 258,578 2.836 97 .207 0.415 140,458 241.272 Deferred revenue Term debt Total non-current labilities Total liabiltes Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 35,867 98.330 40,201 70,400 (3.454) 107,147 365,725 4,754,986 and 5,126,201 shares issued and outstanding, respectively Retained eamings (150) 34.047 375.319 Total shareholders equity Total liabilities and shareholders equity See accompanyling Notes to Consolidated Financial Statements Apple Inc. 1 2018 Form 10-K 1 40 Apple Ine CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY In millions, except number of shares which are reflected in thousands and per share amounts) Common Stock and Additional Paid-in Cepital Accumulated Other Equity 119,355 45,687 979 (345) $ 92.284 45,687 27.416 S Balances as of September 26, 2015 5,578,753 Net income 979 Other comprehensive income/'(loss) Dividends and dividend equivalents deciared at (12,188) (29,000) 4,262 (12.188) (29.000) $2.18 per share or RSU Repurchase of common stock Share-based compensation Common stock issued, net of shares withheld for (279,609) 4,262 (806) 379 (1,225) (419) employee taxes 37,022 Tax benefit from equity awards, including transfer 379 28,249 48,351 pricing adjustments Balances as of September 24, 2016 96.364 5,336,166 31,251 Net income Other comprehensive income/loss) Dividends and dividend equivalents declared a 48,351 (784) (784) (12.803) (33,001) 4,909 $2.40 per share or RSU Repurchase of common stock Share-based compensation Common stock issued, net of shares withheld for (12,803) (33,001) (246,496) 4,909 (1,494) (581) employee taxes 36,531 Tax benefit from equity awards, including transfer pricing adjustments 620 134,047 620 35,867 Balances as of September 30, 2017 (150) (278) (3.026) 5,126,201 98,330 Cunulative effect of change in accounting Net income Other comprehensive income/(loss) Dividends and dividend equivalents declared at 278 59,531 59,531 (3,026) $2.72 per share or RSU Repurchase of common stock Share-based compensation Common stock issued, net of shares withheld for (13,735) (73,056) (13,735) (73,056) 5,443 (405,549) 5,443 (1,109) 40,201S (948) 70,400 $ employee taxes 34,334 (2,057 107,147 Balances as of September 29, 2018 4,754,986 40.201 (3,454) $ See accompanying Notes to Consolidated Financial Statements. Apple Inc. 1 2018 Form 10-K|41 Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS On millions) September 29, September 24 2017 ash and cash equivalents, beginning of the year 21,120 2029 59 531 10,903 68.351 stments to reconde net inoome to cash generated by opening Depreciation and amorization 0.157 10,505 340 Deferred income tax expenselbenelt) Changes in operating assets and iabliies: .322) 2.723) (4254) 5.318) Other current and non-current assets Accounts payable 2,117 1,554) 9,175 33.400 Other current and non-cument liabilities c g rated by operating activins Investing actvites (142 428) (158,486) 71,356) Purchases of marketable securities Proceeds from maturies of marketable securtes Proceeds from sales of marketable securies Payments for acquisition of property, plant and equipment Payments made in connection with 1,775 0.536 12,734) 297) (12.451) (329) 521) (13.313) business acquisitions 1.871) Cash generabed bylused in) investing activites Proceeds from issuance of common stock Payments for taxes nelated to net share settement of equity awards Payments for dividends and dividend equivalents 1.STop 12,150) 28,722) 24.954 (1,874) (12,769) (32,900) 26.662 2.527) (13.712) Proceeds from issuance of erm cebl net Change in commercial paper, net Cash used in fnancing activilies n cash and cash equivalent 20484 20,289 Cash and cash equivaients, and of the year 10,417 $ Cash paid for income taxes,net Cash paid for interest 1.316 2.092 3.022 See accompanying Notes to Consoildated Financial Statements Apple Inc. 12018 Form 10-K| 42 Requirement 2-Ratio analysis for the most recent fiscal year and the previous year Liquidity Analysis Current Ratio Acid-test Ratio Inventory turnover Days' sales in inventony Long-Term Solvency Analysis Debt Ratio Profitability Analysis Rate of return on total assets Rate of return on common stockholder's equity Most recent Fiscal Year Previous Fiscal Year Ending 9/30(2017 Ending gne r20% 1of2 Requirement 2: Ratio Analysis (a) Using the assigned company's financial statements compute the following ratios for the most rece nt year and e previous year (use the textbook for ratio formula, do not use the internet): 1. Current ratio 2. Acid-test ratio 3. Inventory turnover 4. Days' in sales in inventory 5. Debt ratio 6. Rate of return on total assets 7. Rate of return on common stockholder's equity 8. Price/earnings ratio* 9. Free Cash Flow (use Cash Flow statement-Net Cash provided by Operating Activities minus net payments f capital acquisitions minus Dividends paid. This is a dollar amount. Cash Enter your results in the financial analysis chart. Round all computations to two decimal place (except Free Flow). Refer to the text for proper presentation. Note: you will need 3 years of balance sheets to complete the above. Include the previous year's balance sheet with the printed financial statements Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) Years ended September 29, 2018 2016 2017 Net sales Cost of sales 215,639 31,376 84,263 265,595 S 163,756 101,839 229,234 141,048 88,186 Gross margin Operating expenses: 10,045 14.194 4.239 11,581 15.261 26,842 Research and development Selling, general and administrative 14.236 16,705 30,941 Total operating expenses 60,024 1,348 61,372 15,685 45,687 61,344 2,745 64,089 15,738 Operating income Other income/(expense), net Income before provision for income taxes Provision for income taxes Net income 70,898 2,005 72,903 13,372 59,531 S 48.351 $46 83 Earnings per share 8.35 8.31 12.01 9.27 $ 9.21 $ Basic Diluted 11.91 $ Shares used in computing earnings per share 5,217,242 5,251,692 5,470,820 5,500,281 4,955,377 5,000,109 Basic Diluted See accompanying Notes to Consolidated Financial Statements Apple Inc. 1 2018 Form 10-K 1 38 Apple Ine CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) Years ended 2016 2017 2018 45,687 48,351 $ 59,531 $ Net income Change in foreign currency translation, net of tax effects of S(1), $(77) and $8, 75 224 (525) Change in unrealized gains osses on derivative instruments Change in fair value of derivatives, net of tax benefit/(expense) of $(149), $(478) Adjustment for net (gainslosses realized and included in net income, net of tax Total change in unrealized gainslosses on derivative instruments, net of tax 1,315 523 and $(7), respectively (1,477) (1.477)41) 382 905 expense(benefit) of $(104), $475 and $131, respectively (734) (162) Change in unrealized gains/losses on marketable securities: Change in fair value of marketable securities, net of tax benefit (expense) of 1,582 (782) $1,156, $425 and $(863), respectively (3,407) Adjustment for net (gains losses realized and included in net income, net of tax 56 ,638 (64) (846) expense/(benefit) of $21, $35 and $(31), respectively Total change in unrealized gains/losses on marketable securities, net of tax (3,406) (784) 47,567 S 979 46,666 (3,026) 56,505 $ Total c e income See accompanying Notes to Consolidated Financial Statements Apple Inc CONSOLIDATED BALANCE SHEETS Iin millions, except number of shares which are e in thousands and par al ASSETS Current assets: Cash and cash equivalents Marketable securitios Accounts receivable, net 25.913 23.186 17 874 Vendor non-trade receivables Other current assets 7,799 3.936 12.087 31.339 Total current assets Marketable secunities Property. plant and equipment, net Other non-current assets 94 714 3.783 22.283 246.674 Total non-current assets 375.319 Total assats LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilitios: Accounts payable Other current liabilities Deferred revenue Commercial paper Term debt 30 551 7,548 11,977 6,496 100,814 7,543 11,964 8,784 116.866 Total current liablities 2,797 93,735 45.,180 141,712 258,578 2.836 97 .207 0.415 140,458 241.272 Deferred revenue Term debt Total non-current labilities Total liabiltes Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 35,867 98.330 40,201 70,400 (3.454) 107,147 365,725 4,754,986 and 5,126,201 shares issued and outstanding, respectively Retained eamings (150) 34.047 375.319 Total shareholders equity Total liabilities and shareholders equity See accompanyling Notes to Consolidated Financial Statements Apple Inc. 1 2018 Form 10-K 1 40 Apple Ine CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY In millions, except number of shares which are reflected in thousands and per share amounts) Common Stock and Additional Paid-in Cepital Accumulated Other Equity 119,355 45,687 979 (345) $ 92.284 45,687 27.416 S Balances as of September 26, 2015 5,578,753 Net income 979 Other comprehensive income/'(loss) Dividends and dividend equivalents deciared at (12,188) (29,000) 4,262 (12.188) (29.000) $2.18 per share or RSU Repurchase of common stock Share-based compensation Common stock issued, net of shares withheld for (279,609) 4,262 (806) 379 (1,225) (419) employee taxes 37,022 Tax benefit from equity awards, including transfer 379 28,249 48,351 pricing adjustments Balances as of September 24, 2016 96.364 5,336,166 31,251 Net income Other comprehensive income/loss) Dividends and dividend equivalents declared a 48,351 (784) (784) (12.803) (33,001) 4,909 $2.40 per share or RSU Repurchase of common stock Share-based compensation Common stock issued, net of shares withheld for (12,803) (33,001) (246,496) 4,909 (1,494) (581) employee taxes 36,531 Tax benefit from equity awards, including transfer pricing adjustments 620 134,047 620 35,867 Balances as of September 30, 2017 (150) (278) (3.026) 5,126,201 98,330 Cunulative effect of change in accounting Net income Other comprehensive income/(loss) Dividends and dividend equivalents declared at 278 59,531 59,531 (3,026) $2.72 per share or RSU Repurchase of common stock Share-based compensation Common stock issued, net of shares withheld for (13,735) (73,056) (13,735) (73,056) 5,443 (405,549) 5,443 (1,109) 40,201S (948) 70,400 $ employee taxes 34,334 (2,057 107,147 Balances as of September 29, 2018 4,754,986 40.201 (3,454) $ See accompanying Notes to Consolidated Financial Statements. Apple Inc. 1 2018 Form 10-K|41 Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS On millions) September 29, September 24 2017 ash and cash equivalents, beginning of the year 21,120 2029 59 531 10,903 68.351 stments to reconde net inoome to cash generated by opening Depreciation and amorization 0.157 10,505 340 Deferred income tax expenselbenelt) Changes in operating assets and iabliies: .322) 2.723) (4254) 5.318) Other current and non-current assets Accounts payable 2,117 1,554) 9,175 33.400 Other current and non-cument liabilities c g rated by operating activins Investing actvites (142 428) (158,486) 71,356) Purchases of marketable securities Proceeds from maturies of marketable securtes Proceeds from sales of marketable securies Payments for acquisition of property, plant and equipment Payments made in connection with 1,775 0.536 12,734) 297) (12.451) (329) 521) (13.313) business acquisitions 1.871) Cash generabed bylused in) investing activites Proceeds from issuance of common stock Payments for taxes nelated to net share settement of equity awards Payments for dividends and dividend equivalents 1.STop 12,150) 28,722) 24.954 (1,874) (12,769) (32,900) 26.662 2.527) (13.712) Proceeds from issuance of erm cebl net Change in commercial paper, net Cash used in fnancing activilies n cash and cash equivalent 20484 20,289 Cash and cash equivaients, and of the year 10,417 $ Cash paid for income taxes,net Cash paid for interest 1.316 2.092 3.022 See accompanying Notes to Consoildated Financial Statements Apple Inc. 12018 Form 10-K| 42