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The following summarized data (amounts in millions) are taken from the September 26, 2020, and September 28, 2019, comparative financial statements of Apple Incorporated, a
The following summarized data (amounts in millions) are taken from the September 26, 2020, and September 28, 2019, comparative financial statements of Apple Incorporated, a company that designs, manufactures, and markets mobile communication and media devices and personal computers; sells a variety of related software, services, accessories, networking solutions, and offers third-party digital content and applications:
(Amounts Expressed in Millions) | 2020 | 2019 |
---|---|---|
For the Fiscal Years Ended September 26 and September 28, respectively: | ||
Net sales | $ 274,515 | $ 260,174 |
Costs of sales | 169,559 | 161,782 |
Operating income | 66,288 | 63,930 |
Net income | $ 57,411 | $ 55,256 |
At Year-End: Assets | ||
Current assets: | ||
Cash and cash equivalents | $ 38,016 | $ 48,844 |
Short-term marketable securities | 52,927 | 51,713 |
Accounts receivable, net | 16,120 | 22,926 |
Inventories | 4,061 | 4,106 |
Vendor non-trade receivables | 21,325 | 22,878 |
Other current assets | 11,264 | 12,352 |
Total current assets | 143,713 | 162,819 |
Noncurrent assets: | ||
Long-term marketable securities | 100,887 | 105,341 |
Property, plant, and equipment, net | 36,766 | 37,378 |
Other noncurrent assets | 42,522 | 32,978 |
Total noncurrent assets | $ 180,175 | $ 175,697 |
Total assets | $ 323,888 | $ 338,516 |
Liabilities and Shareholders Equity | ||
Current liabilities: | ||
Accounts payable | $ 42,296 | $ 46,236 |
Other current liabilities | 42,684 | 37,720 |
Deferred revenue | 6,643 | 5,522 |
Commercial paper | 4,996 | 5,980 |
Current portion of term debt | 8,773 | 10,260 |
Total current liabilities | 105,392 | 105,718 |
Noncurrent liabilities: | ||
Noncurrent portion of term debt | 98,667 | 91,807 |
Other noncurrent liabilities | 54,490 | 50,503 |
Total noncurrent liabilities | 153,157 | 142,310 |
Total liabilities | 258,549 | 248,028 |
Shareholders equity: | ||
Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 16,976,763 and 17,772,945 shares issued and outstanding, respectively | 50,779 | 45,174 |
Retained earnings | 14,966 | 45,898 |
Accumulated other comprehensive income/(loss) | (406) | (584) |
Total shareholders equity | 65,339 | 90,488 |
Total liabilities and shareholders equity | $ 323,888 | $ 338,516 |
At September 29, 2018, total assets were $365,725 and total shareholders equity was $107,147.
Required:
- Calculate Apple Incorporateds working capital, current ratio, and acid-test ratio at September 26, 2020, and September 28, 2019.
- Calculate Apples ROE for the years ended September 26, 2020, and September 28, 2019.
- Calculate Apples ROI, showing margin and turnover, for the years ended September 26, 2020, and September 28, 2019.
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