THE INCOME STATEMENTS 1. Apple provides calculations of both Basic and Diluted EPS. Why do companies often have to report Diluted EPS? 2. The formula for the Return on Equity (ROE) appears on page 683 in your textbook. Calculate Apple's ROE for fiscal year 2021. 3. A commonly-used valuation metric of a company's stock is an earnings multiple known as the Price- Earnings Ratio (P/E ratio). The P/E ratio is calculated as the market price per share of common stock divided by the earnings per share. Apple common stock closed at $146.92 per share on September 24, 2021, which was the last trading day of fiscal year 2021. Compute Apple's P/E ratio at the end of fiscal 2021. (Note: Use the amount shown on the income statement as basic earnings per share in your calculation.) 4. When making their investment decisions, investors often calculate a company's Dividend Yield, defined as dividends per share divided by market price per share. (See page 695 in your textbook for more about this ratio.) During fiscal year 2021, Apple declared cash dividends of $0.86 per share on its common stock. Compute Apple's dividend yield at September 24, 2021, using the market price of $146.92 per share. OVERVIEW OF THE STATEMENTS OF COMPREHENSIVE INCOME 1. What was Apple's total comprehensive income for each of the three years? 2. What was the largest positive item added to the net income of $94,680 to arrive at total comprehensive income for fiscal year 2021? What was the largest negative adjustment to net income to arrive at total comprehensive income? OVERVIEW OF THE STATEMENTS OF CASH FLOWS 1. What method - direct or indirect-does Apple use to report its "Cash generated by operating activities"? 2. What amounts of depreciation and amortization did Apple report for each of the three years? Why are these amounts added to net income when calculating cash provided by operations? 3. How much cash did Apple receive as proceeds from sales of marketable securities in each of the three years? 4. How much cash did Apple pay for acquisition of property, plant and equipment in each of the three years? 5. How much cash did Apple pay for repurchases its common stock in each of the three years? 6. How much did Apple pay (net) in income taxes in fiscal year 2021? How much interest Apple pay in fiscal year 2021? SELECTED NOTES TO THE FINANCIAL STATEMENTS 1. According to the consolidated balance sheets, Apple reported as "Non-current liabilities" Term debt of $109,106 and $98,667 at the ends of fiscal years 2021 and 2020, respectively. The details of these amounts appear in Note 7. a. According to Note 7, what are the required principal payments for each of the next five years (2022 through 2026)? b. Why might the detail of required principal payments be of interest to investors? c. According to the consolidated statements of cash flows, what were the net proceeds from the issuance of term debt in fiscal year 2021? 2. In Note 8, Apple provides information about its Shareholders' Equity. a. How many of its shares did Apple repurchase in fiscal year 2021? How much did Apple pay in total in fiscal year 2021 for these share market repurchases? b. Apple does not report any treasury stock on its balance sheet. How, then, did Apple account for the shares that it repurchased in fiscal year 2021? (Hint: Refer to the Consolidated Statements of Shareholders' Equity.)