Refer to Apple's financial statements in Appendix A to answer the following. Required: 1. What percent of the original cost of Apple's Property, Plant and Equipment account remains to be depreciated as of (a) September 30, 2017, and (b) September 24, 2016? Assume these assets have no salvage value and the entire account is depreciable. Hint: Accumulated Depreciation is listed under "Property, plant and Equipment" in the notes to Apple's financial statements in Appendix A. 2. Much research and development is needed to create the next iPhone. Does Apple capitalize and amortize research and development costs over the life of the product, or are research and development costs expensed as incurred? 3. Compute Apple's total asset turnover for the year ended (a) September 30, 2017, and (b) September 24, 2016. Assume total assets at September 26, 2015, are $290,345 ($ millions). 4. Using the results in part 3, is Apple's asset turnover on a favorable or unfavorable trend? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 What percent of the original cost of Apple's Property, plant and Equipment account remains to be depreciated as of (a) September 30, 2017, and (b) September 24, 2016? Assume these assets have no salvage value and the entire account is depreciable. Hint: Accumulated Depreciation is listed under "Property, plant and Equipment" in the notes to Apple's financial statements in Appendix A. (Round your answers to 1 decimal place.) Show less % of Original Cost (a) September 30, 2017 (b) September 24, 2016 4. Using the results in part 3, Is Apples asset turnover on a tavolable or Uhlavolable trend? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Much research and development is needed to create the next iPhone. Does Apple capitalize and amortize research and development costs over the life of the product, or are research and development costs expensed as incurred? Research and developments costs are: at September 26, 2015, are $290,345 ($ millions). 4. Using the results in part 3, is Apple's asset turnover on a favorable or unfavorable trend? Complete this question by entering your answers in the tabs below. Required i Required 2 Required 3 Required 4 Compute Apple's total asset turnover for the year ended (a) September 30, 2017, and (b) September 24, 2016. Assume total assets at September 26, 2015, are $290,345 ($ millions). (Round your answers to 2 decimal places.) Total Asset Turnover times (a) September 30, 2017 (b) September 24, 2016 times Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Using the results in part 3, is Apple's asset turnover on a favorable or unfavorable trend? Is Apple's asset turnover on a favorable or unfavorable trend? Required 3 Required 4 > Appendix A Financial Statement Information A APPLE September 24, 2016 $ Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 30, 2017 ASSETS Current assets Cash and cash equivalents 20.289 Short-term marketable securities 53,892 Accounts receivable, less allowances of $58 and $53, respectively 17,874 Inventories 4,855 Vendor non-trade receivables 17.799 Other current assets 13.936 Total current assets 128,645 Long-term marketable securities 194,714 Property, plant and equipment, net 33,783 Goodwill 5,717 Acquired intangible assets, net 2,298 Other non-current assets 10.162 Total assets $ 375,319 20.484 46,671 15,754 2.132 13,545 8.283 106,869 170.430 27.010 5.414 3,206 8,757 321.686 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable Accrued expenses Deferred revenue Commercial paper Current portion of long-term debt Total current liabilities Deferred revenue, non-current Long-term debt Other non-current liabilities Total liabilities Commitments and contingencies 49.049 25.744 7,548 11.977 6,496 100.814 2.836 97,207 40,415 241,272 37.294 22.027 8,080 8,105 3,500 79,006 2.930 75.427 36,074 193,437 Shareholders' equity Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 5,126,201 and 5,336,166 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income (loss) Total shareholders' equity Total liabilities and shareholders' equity $ See accompanying Notes to Consolidated Financial Statements. 35.867 98,330 (150) 134.047 375,319 31.251 96,364 634 128,249 3 21,686 S APPLE Apple Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In millions, except number of shares which are reflected in thousands) Accumulated Other Common Stock and Comprehensive Total Additional Paid-In Capital - Retained Income Shareholders' Shares Amount Earnings (Loss) Equity Balances as of September 27, 2014 5,866,161 $ 23,313 $ 87,152 1,082 111,547 Net income 53,394 53,394 Other comprehensive income (loss) (1,427) (1,427) Dividends and dividend equivalents declared (11.627) (11.627) Repurchase of common stock (325,032) (36,026) (36,026) Share-based compensation 3,586 3,586 Common stock issued, net of shares withheld for employee taxes 37,624 (231) (609) (840) Tax benefit from equity awards, including transfer pricing adjustments 748 748 Balances as of September 26, 2015 5,578,753 $ 27,416 $ 92,284 $ (345) S 119,355 Net income 45,687 45,687 Other comprehensive income (loss) 979 979 Dividends and dividend equivalents declared (12.188) (12,188) Repurchase of common stock (279,609) (29,000) (29,000) Share-based compensation 4,262 4,262 Common stock issued, net of shares withheld for employee taxes 37,022 (806) (419) (1,225) Tax benefit from equity awards, including transfer pricing adjustments 379 379 Balances as of September 24, 2016 5,336,166 31,251 $ 96,364 634 128,249 Net income 48,351 48,351 Other comprehensive income (loss) (784) (784) Dividends and dividend equivalents declared (12,803) (12,803) Repurchase of common stock (246,496) (33,001) (33,001) Share-based compensation 4,909 4,909 Common stock issued, net of shares withheld for employee taxes 36,531 (913) (581) Tax benefit from equity awards, including transfer pricing adjustments 620 620 Balances as of September 30, 2017 5,126,201 $ 35,867 $ 98,330 $ (150) S 134,047 (1.494) See accompanying Notes to Consolidated Financial Statements