Use the information contained in these financial statements and notes to complete this case. All answers should be for the most current year (September 24, 2016) unless asked otherwise. Many companies show amounts in the thousands or millions please state amounts as shown on the financial statements. Do not add zeros. You do not need to include dollar signs.

Selected financial statements of Apple, Inc. follow.

I.Financial Statement Analysis Ratios Must show your work for all ratios. Calculate each ratio to three decimal places.

1.	Chapters 3 & 13 (pages 128, 127, 597)
	Calculate the Current ratio. (4) Does this ratio appear favorable or unfavorable? (4) Why? (4)
	b. Calculate the Profit Margin ratio. (4)Does this ratio appear favorable or unfavorable? (4) Why? (4)
2.	Chapters 6, 7 & 13 (pages 327, 285, 597)
	a. Calculate the Accounts Receivable Turnover ratio. (8)
	Calculate the Days Sales Uncollected ratio. (6) Does this ratio appear favorable or unfavorable? Why? (4)
3.	Chapters 8 & 13 (pages 367, 597)
	a. Calculate the Total Asset Turnover ratio. (6)
4.	Chapters 2 & 13 (pages 77, 597)
	a. Calculate the Debt ratio. (4) What does this ratio tell you about Apples risk? (4)
5.	Chapters 10 & 13 (pages 451, 452, 593, 597)
	Calculate the Debt-to-Equity Ratio. (4) What does this ratio tell you about Apples capital structure and risk? (4)
6.	Chapters 11 & 13 (pages 501, 595, 596, 597)
	What is the current market price of the stock? This is not in the financial statements provided. It is noted on Apples website or go to www.yahoofinance.com to get the quote. The ticker symbol for Apple is AAPL. Price __________ (4) Date found: ____________
	Calculate the Dividend Yield. (4)
	c.Calculate the Price-Earnings Ratio. (4) What range do analyst give for a stock to be considered overpriced? (2) What range do analyst give for a stock to be considered underpriced? (2) What does this tell you about Apples stock price? Why? (4)
7.	Chapters 5 & 13 (page 227, 597)
	Calculate the Inventory turnover ratio. (6)
	Calculate the Days Sales in Inventory ratio. (6) Is this favorable or unfavorable? Why? (4)

II. Summary

Your superior asks you to analyze this companys financial condition (liquidity, efficiency, solvency, profitability). Would you recommend it as a worthy investment (yes or no)? Support your opinion using answers from part I (#1-7) above. You must give at least five reasons to support your answer to receive full credit.

CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amournts) Years ended September 27 2014 September 24.September 26, 2016 2015 Net sales Cost of sales 215,639 S 131,376 84,263 233,715 S 140,089 93,626 182,795 112,258 70,537 Gross margin Operating expenses Research and development Selling, general and administrative 10,045 14,194 24,239 8,067 14,329 22,396 6,041 11,993 18,034 Total operating expenses 60,024 52,503 980 53,483 13,973 39,510 71,230 Operating income Other income/(expense), net Income before provision for income taxes Provision for income taxes Net income 1,348 61,372 15,685 45,687 S 1,285 72,515 19,121 53,394 S Earnings per share: Basic Diluted 8.35 S 8.31 S 9.28 S 9.22 S 6.49 6.45 Shares used in computing earnings per share 5,470,820 5,500,281 5,753,421 5,793,069 6,085,572 6,122,663 Basic Diluted Cash dividends declared per share 2.18 S 1.98 S 1.82