Use the income statement and balance sheet information for Apple to fill in the missing items in the calculation of Apple$$s ROIC and supporting ratios. Once filled in correctly, compare Apple$$s performance to that of Microsoft. Where does Apple have an advantage? Where does Microsoft have an advantage?

Apple Inc Microsoft Corporation

Income Statement FYE Sept, $272014(000)$ FYE June $302015(000)$

Net sales $182,795,00093,580,000$

Cost of sales $112,258,00033,038,000$

Gross margin $70,537,00060,542,000$

Research & development expense $6,041,00012,046,000$

Selling, general & admin expense $11,993,00020,324,000$

Total operating expenses $10,011,000$

Operating expenses $18,034,00042,381,000$

Operating margin $52,503,00018,161,000$

Interest & dividend income $1,795,000766,000$

Interest expense $384,000781,000$

Other Income $/$ Expense $-431,000361,000$

Total Other income $980,000346,000$

Earnings before taxes $53,483,00018,507,000$

Provision for taxes $13,973,0006,314,000$

Net income $($loss$)39,510,00012,193,000$

Apple Inc Microsoft Corporation

Balance sheet FYE Sept, $272014(000)$ FYE June $302015(000)$

Cash & cash equivalents $13,844,0005,595,000$

Short$-$term marketable securities $11,233,00090,931,000$

Accounts receivable $17,460,00017,908,000$

Components $471,0001,100,000$

Finished goods $1,640,0001,600,000$

Inventories $2,111,0002,902,000$

Other Current Assets $21,772,0004,676,000$

Total current assets $68,531,000124,712,000$

$130,162,00012,053,000$

Long$-$term marketable securities $20,624,00014,731,000$

Fixed Assets: PP&E $($net$)12,522,00024,727,000$

Other assets $163,308,00051,511,000$

Long term assets $231,839,000176,223,000$

Total assets $30,196,0006,591,000$

Accounts payable $33,252,00043,267,000$

Other Current liabilities $63,448,00049,858,000$

Total current liabilities $28,987,000$

Long$-$term debt $3,031,000278,080,000$

Deferred revenue $-$ non$-$current $20,259,0002,095,000$

Deferred tax liabilities $4,567,0002,835,000$

Other non$-$current liabilities $13,544,000$

Long Term liabilities $56,844,00046,282,000$

Total liabilities $120,292,00096,140,000$

Common stock $23,313,00068,465,000$

Retained earnings $87,152,0009,096,000$

Unrecognized gain on securities $1,082,0002,522,000$

Total shareholders' equity $111,547,00080,083,000$

Total liabilities $+$ shareholders equity $231,839,000176,223,000$

Execise $7$a $-$ Calculating Apple's ROIC

Calculate the Apple$$s ROIC and supporting ratios. $($Enter your responses rounded to two decimal places.$)$