Refer to Apple's financial statements in Appendix A to answer the following. Required 1. Assume that the amounts reported for inventories and cost of sales reflect items purchased in a form ready for resale. Compute the net cost of goods purchased for the year ended September 30, 2017. 2. Compute the current ratio and acid-test ratio as of September 30, 2017, and September 24, 2016. 3. Does Apple's 2017 current ratio outperform or underperform the (assumed) industry average of 1.5? 4. Does Apple's 2017 acid-test ratio outperform or underperform the (assumed) industry average of 1.0? Complete this question by entering your answers in the tabs below. Required 1 Required 3 Required 2 Required 4 Does Apple's 2017 acid-test ratio outperform or underperform the (assumed) industry average of 1.0? Apple's 2017 acid-test ratio Required 1. Assume that the amounts reported for inventories and cost of sales reflect items purchased in a form ready for resale. Compute the net cost of goods purchased for the year ended September 30, 2017. 2. Compute the current ratio and acid-test ratio as of September 30, 2017, and September 24, 2016. 3. Does Apple's 2017 current ratio outperform or underperform the (assumed) industry average of 1.5? 4. Does Apple's 2017 acid-test ratio outperform or underperform the (assumed) industry average of 1.0? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Does Apple's 2017 current ratio outperform or underperform the (assumed) industry average of 1.5? Apple's 2017 current ratio Required 1. Assume that the amounts reported for inventories and cost of sales reflect items purchased in a form ready for resale. Compute the net cost of goods purchased for the year ended September 30, 2017. 2. Compute the current ratio and acid-test ratio as of September 30, 2017, and September 24, 2016. 3. Does Apple's 2017 current ratio outperform or underperform the (assumed) industry average of 1.5? 4. Does Apple's 2017 acid-test ratio outperform or underperform the (assumed) industry average of 1.0? Complete this question by entering your answers in the tabs below. Required 3 Required 1 Required 2 Required 4 Compute the current ratio and acid-test ratio as of September 30, 2017, and September 24, 2016. 2017 2016 Current Acid-Test Acid-Test Ratio Current $ millions Ratio Ratio Ratio Current assets Cash and equivalents Short-term marketable sec Accounts receivables, net Inventories, net Vendor receivables Other current assets Total current assets Total quick assets Total current liabilities Ratio Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) September 30, 2017 September 24, 2016 September 26, 2015 Years ended Cash and cash equivalents, beginning of the year 20,484 21,120 13,844 Operating activities: Net income 48,351 45,687 53,394 Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization Share-based compensation expense 10,157 10,505 11,257 3,586 4,840 4,210 Deferred income tax expense 4,938 1,382 5,966 Other (166) 486 385 Changes in operating assets and liabilities: 417 Accounts receivable, net (2,093) 527 (2,723) Inventories 217 (238) (3,735) Vendor non-trade receivables (4,254) (51) (283) Other current and non-current assets (5,318) 1,055 Accounts payable 9,618 1,837 5,001 Deferred revenue (626) (1,554) 1,042 Other current and non-current liabilities (154) (2,033) 9,058 Cash generated by operating activities 63,598 65,824 81,266 Investing activities: (159,486) Purchases of marketable securities (142,428) (166,402) Proceeds from maturities of marketable securities 31,775 21,258 14,538 94,564 90,536 Proceeds from sales of marketable securities 107,447 (343) Payments made in connection with business acquisitions, net (329) (297) (11,247) Payments for acquisition of property, plant and equipment (12,451) (12,734) Payments for acquisition of intangible assets (344) (814) (241) Payments for strategic investments, net (395) (1,388) Other 220 (110) (26) Cash used in investing activities (46,446) (45,977) (56,274) Financing activities: Proceeds from issuance of common stock 555 495 543 Excess tax benefits from equity awards 627 407 749 (1,570) Payments for taxes related to net share settlement of equity awards (1,874) (1,499) Payments for dividends and dividend equivalents (12,769) (12,150) (11,561) Repurchases of common stock (32,900) (29,722) (35,253) Proceeds from issuance of term debt, net 28,662 24,954 27,114 Repayments of term debt (3,500) (2,500) Change in commercial paper, net (397 3,852 2,191 (17,347) Cash used in financing activities (20,483) (17,716) (636) Increase (decrease) in cash and cash equivalents (195) 7,276 24 21,120 Cash and cash equivalents, end of the year 20,289 20,484 Supplemental cash flow disclosure: 24 2$ Cash paid for income taxes, net 11,591 10,444 13,252 Cash paid for interest 2$ 2$ 1,316 2$ 2,092 514 See accompanying Notes to Consolidated Financial Statements. Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 30, 2017 September 24, 2016 ASSETS Current assets Cash and cash equivalents 24 20,484 20,289 Short-term marketable securities 53,892 46,671 Accounts receivable, less allowances of $58 and $53, respectively 15,754 17,874 Inventories 4,855 2,132 Vendor non-trade receivables 17,799 13,545 Other current assets 13,936 8,283 Total current assets 128,645 106,869 170,430 Long-term marketable securities 194,714 Property, plant and equipment, net 33,783 27,010 Goodwill 5,717 5,414 3,206 Acquired intangible assets, net 2,298 Other non-current assets 10,162 8,757 Total assets 2$ 375,319 321,686 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable 49,049 37,294 Accrued expenses 25,744 22,027 Deferred revenue 7,548 8,080 Commercial paper 11,977 8,105 Current portion of long-term debt 6,496 3,500 79,006 Total current liabilities 100,814 Deferred revenue, non-current 2,836 2,930 Long-term debt 97,207 75,427 Other non-current liabilities 40,415 36,074 193,437 Total liabilities 241,272 Commitments and contingencies 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 35,867 31,251 Retained carnings Accumulated other comprehensive income (loss) 98,330 96,364 (150) 634 Total shareholders' equity 134,047 128,249 Total liabilities and shareholders' equity 375,319 321,686 See accompanying Notes to Consolidated Financial Statements