TABLE P2.4 (continued) Period Ending BALANCE SHEET Net Tangible Assets INCOME STATEMENT Total Revenue Cost of Revenue Gross Profit Operating Expenses Research Development Selling General and Administrative Operating Income or Loss Income from Continuing Operations Total Other Income/Expenses Net Earnings Before Interest And Taxes Interest Expense Income Before Tax Income Tax Expense Minority Interest Net Income From Continuing Ops Net Income Preferred Stock And Other Adjustments Net Income Applicable To Common Shares 27-Sep-08 $20,471,000 32.479,000 21.334,000 11.145,000 1.109.000 3.761.000 6.275.000 620.000 6.895.000 6.895,000 2.061.000 4.834.000 4,834,000 $4,834,000 All numbers in thousands 29-Sep-07 $14,112,000 24,006,000 15,852,000 8,154,000 782,000 2.963.000 4,409,000 599,000 5,008,000 5,008,000 1,512.000 3.496.000 3,496,000 $3,496,000 30-Sep-06 $9,786,000 19,315,000 13,717,000 5,598,000 712.000 2.433.000 2,453,000 365.000 2.818.000 - 2,818.000 829.000 1,989,000 1,989,000 $1,989,000 TABLE P2.4 (continued) Period Ending BALANCE SHEET Net Tangible Assets INCOME STATEMENT Total Revenue Cost of Revenue Gross Profit Operating Expenses Research Development Selling General and Administrative Operating Income or Loss Income from Continuing Operations Total Other Income/Expenses Net Earnings Before Interest And Taxes Interest Expense Income Before Tax Income Tax Expense Minority Interest Net Income From Continuing Ops Net Income Preferred Stock And Other Adjustments Net Income Applicable To Common Shares 27-Sep-08 $20,471,000 32.479,000 21.334,000 11.145,000 1.109.000 3.761.000 6.275.000 620.000 6.895.000 6.895,000 2.061.000 4.834.000 4,834,000 $4,834,000 All numbers in thousands 29-Sep-07 $14,112,000 24,006,000 15,852,000 8,154,000 782,000 2.963.000 4,409,000 599,000 5,008,000 5,008,000 1,512.000 3.496.000 3,496,000 $3,496,000 30-Sep-06 $9,786,000 19,315,000 13,717,000 5,598,000 712.000 2.433.000 2,453,000 365.000 2.818.000 - 2,818.000 829.000 1,989,000 1,989,000 $1,989,000 TABLE P2.4 (continued) Period Ending BALANCE SHEET Net Tangible Assets INCOME STATEMENT Total Revenue Cost of Revenue Gross Profit Operating Expenses Research Development Selling General and Administrative Operating Income or Loss Income from Continuing Operations Total Other Income/Expenses Net Earnings Before Interest And Taxes Interest Expense Income Before Tax Income Tax Expense Minority Interest Net Income From Continuing Ops Net Income Preferred Stock And Other Adjustments Net Income Applicable To Common Shares 27-Sep-08 $20,471,000 32.479,000 21.334,000 11.145,000 1.109.000 3.761.000 6.275.000 620.000 6.895.000 6.895,000 2.061.000 4.834.000 4,834,000 $4,834,000 All numbers in thousands 29-Sep-07 $14,112,000 24,006,000 15,852,000 8,154,000 782,000 2.963.000 4,409,000 599,000 5,008,000 5,008,000 1,512.000 3.496.000 3,496,000 $3,496,000 30-Sep-06 $9,786,000 19,315,000 13,717,000 5,598,000 712.000 2.433.000 2,453,000 365.000 2.818.000 - 2,818.000 829.000 1,989,000 1,989,000 $1,989,000 TABLE P2.4 (continued) Period Ending BALANCE SHEET Net Tangible Assets INCOME STATEMENT Total Revenue Cost of Revenue Gross Profit Operating Expenses Research Development Selling General and Administrative Operating Income or Loss Income from Continuing Operations Total Other Income/Expenses Net Earnings Before Interest And Taxes Interest Expense Income Before Tax Income Tax Expense Minority Interest Net Income From Continuing Ops Net Income Preferred Stock And Other Adjustments Net Income Applicable To Common Shares 27-Sep-08 $20,471,000 32.479,000 21.334,000 11.145,000 1.109.000 3.761.000 6.275.000 620.000 6.895.000 6.895,000 2.061.000 4.834.000 4,834,000 $4,834,000 All numbers in thousands 29-Sep-07 $14,112,000 24,006,000 15,852,000 8,154,000 782,000 2.963.000 4,409,000 599,000 5,008,000 5,008,000 1,512.000 3.496.000 3,496,000 $3,496,000 30-Sep-06 $9,786,000 19,315,000 13,717,000 5,598,000 712.000 2.433.000 2,453,000 365.000 2.818.000 - 2,818.000 829.000 1,989,000 1,989,000 $1,989,000 $2 Debt Equity 8 *2.4 Table P2.4 shows financial statements for Apple Computer Corporation. The closing stock price for Apple was $128.24 on September 26, 2008. The average number of outstanding shares was 892.14 million. On the basis of the financial dara pre- sented, compute the various financial ratios and make an informed analysis of Apple's financial health. (a) Debt ratio (b) Times-interest-earned ratio (c) Current ratio (d) Quick (acid-test) ratio (e) Inventory-turnover ratio (f) Day's-sales-outstanding (g) Total-assets-turnover ratio (h) Profit margin on sales (i) Return on total assets (1) Return on common equity (k) Price/earnings ratio (H (1) Book value per share (1 TABLE P2.4 Financial Statements for Apple Comp TABLE P2.4 (continued) Period Ending BALANCE SHEET Net Tangible Assets INCOME STATEMENT Total Revenue Cost of Revenue Gross Profit Operating Expenses Research Development Selling General and Administrative Operating Income or Loss Income from Continuing Operations Total Other Income/Expenses Net Earnings Before Interest And Taxes Interest Expense Income Before Tax Income Tax Expense Minority Interest Net Income From Continuing Ops Net Income Preferred Stock And Other Adjustments Net Income Applicable To Common Shares 27-Sep-08 $20,471,000 32.479,000 21.334,000 11.145,000 1.109.000 3.761.000 6.275.000 620.000 6.895.000 6.895,000 2.061.000 4.834.000 4,834,000 $4,834,000 All numbers in thousands 29-Sep-07 $14,112,000 24,006,000 15,852,000 8,154,000 782,000 2.963.000 4,409,000 599,000 5,008,000 5,008,000 1,512.000 3.496.000 3,496,000 $3,496,000 30-Sep-06 $9,786,000 19,315,000 13,717,000 5,598,000 712.000 2.433.000 2,453,000 365.000 2.818.000 - 2,818.000 829.000 1,989,000 1,989,000 $1,989,000 TABLE P2.4 (continued) Period Ending BALANCE SHEET Net Tangible Assets INCOME STATEMENT Total Revenue Cost of Revenue Gross Profit Operating Expenses Research Development Selling General and Administrative Operating Income or Loss Income from Continuing Operations Total Other Income/Expenses Net Earnings Before Interest And Taxes Interest Expense Income Before Tax Income Tax Expense Minority Interest Net Income From Continuing Ops Net Income Preferred Stock And Other Adjustments Net Income Applicable To Common Shares 27-Sep-08 $20,471,000 32.479,000 21.334,000 11.145,000 1.109.000 3.761.000 6.275.000 620.000 6.895.000 6.895,000 2.061.000 4.834.000 4,834,000 $4,834,000 All numbers in thousands 29-Sep-07 $14,112,000 24,006,000 15,852,000 8,154,000 782,000 2.963.000 4,409,000 599,000 5,008,000 5,008,000 1,512.000 3.496.000 3,496,000 $3,496,000 30-Sep-06 $9,786,000 19,315,000 13,717,000 5,598,000 712.000 2.433.000 2,453,000 365.000 2.818.000 - 2,818.000 829.000 1,989,000 1,989,000 $1,989,000 TABLE P2.4 (continued) Period Ending BALANCE SHEET Net Tangible Assets INCOME STATEMENT Total Revenue Cost of Revenue Gross Profit Operating Expenses Research Development Selling General and Administrative Operating Income or Loss Income from Continuing Operations Total Other Income/Expenses Net Earnings Before Interest And Taxes Interest Expense Income Before Tax Income Tax Expense Minority Interest Net Income From Continuing Ops Net Income Preferred Stock And Other Adjustments Net Income Applicable To Common Shares 27-Sep-08 $20,471,000 32.479,000 21.334,000 11.145,000 1.109.000 3.761.000 6.275.000 620.000 6.895.000 6.895,000 2.061.000 4.834.000 4,834,000 $4,834,000 All numbers in thousands 29-Sep-07 $14,112,000 24,006,000 15,852,000 8,154,000 782,000 2.963.000 4,409,000 599,000 5,008,000 5,008,000 1,512.000 3.496.000 3,496,000 $3,496,000 30-Sep-06 $9,786,000 19,315,000 13,717,000 5,598,000 712.000 2.433.000 2,453,000 365.000 2.818.000 - 2,818.000 829.000 1,989,000 1,989,000 $1,989,000 TABLE P2.4 (continued) Period Ending BALANCE SHEET Net Tangible Assets INCOME STATEMENT Total Revenue Cost of Revenue Gross Profit Operating Expenses Research Development Selling General and Administrative Operating Income or Loss Income from Continuing Operations Total Other Income/Expenses Net Earnings Before Interest And Taxes Interest Expense Income Before Tax Income Tax Expense Minority Interest Net Income From Continuing Ops Net Income Preferred Stock And Other Adjustments Net Income Applicable To Common Shares 27-Sep-08 $20,471,000 32.479,000 21.334,000 11.145,000 1.109.000 3.761.000 6.275.000 620.000 6.895.000 6.895,000 2.061.000 4.834.000 4,834,000 $4,834,000 All numbers in thousands 29-Sep-07 $14,112,000 24,006,000 15,852,000 8,154,000 782,000 2.963.000 4,409,000 599,000 5,008,000 5,008,000 1,512.000 3.496.000 3,496,000 $3,496,000 30-Sep-06 $9,786,000 19,315,000 13,717,000 5,598,000 712.000 2.433.000 2,453,000 365.000 2.818.000 - 2,818.000 829.000 1,989,000 1,989,000 $1,989,000 $2 Debt Equity 8 *2.4 Table P2.4 shows financial statements for Apple Computer Corporation. The closing stock price for Apple was $128.24 on September 26, 2008. The average number of outstanding shares was 892.14 million. On the basis of the financial dara pre- sented, compute the various financial ratios and make an informed analysis of Apple's financial health. (a) Debt ratio (b) Times-interest-earned ratio (c) Current ratio (d) Quick (acid-test) ratio (e) Inventory-turnover ratio (f) Day's-sales-outstanding (g) Total-assets-turnover ratio (h) Profit margin on sales (i) Return on total assets (1) Return on common equity (k) Price/earnings ratio (H (1) Book value per share (1 TABLE P2.4 Financial Statements for Apple Comp