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Selected data from the September 30, 2017, and September 24, 2016, consolidated balance sheets and income statements for the years then ended for Apple Inc.

Selected data from the September 30, 2017, and September 24, 2016, consolidated balance sheets and income statements for the years then ended for Apple Inc. follow. All amounts are reported in millions.

2017 2016
Net sales $ 229,234 $ 215,639
Cost of sales 141,048 131,376
Research and development expenses 11,581 10,045
Selling, general, and administrative expenses 15,261 14,194
Operating income ? ?
Other income, net ? 1,348
Provision for income taxes 15,738 ?
Net income $ 48,351 $ 45,687

Required:

  1. Calculate the amount of Apples gross profit for each year. Has gross profit as a percentage of sales changed significantly during the past year?
  2. Calculate the amount of Apples operating income for each year. Has operating income as a percentage of sales changed significantly during the past year?
  3. After completing requirements a and b, calculate the other missing amounts for each year. Indicate the financial statement effect.

image text in transcribed

After completing requirements a and b, calculate the other missing amounts for each year. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect. Enter your answer in millions of dollars.) 2017 2016 $ 61,344 $ 60,024 Operating income Other income, net Income before taxes 1,348 Provision for income taxes (15,738) 48,351 $ Net income $ 45,687

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