Using the information from AppleResources_Lesson5.docx (Balance Sheet, Income Statement and Statement of Cash Flows), compute the following Ratios for 2012:

1.Current Ratio = Total Current Assets/Total Current Liabilities

2.Debt to Equity Ratio = Total Liabilities/Total Shareholders? Equity

3.Inventory Turnover Ratio = Cost of Sales/Average Inventory

4.Return on Assets Ratio = Net Income/Average Total Assets

5.Gross Margin Ratio = Gross Profit/Net Sales

6.Profit Margin Ratio = Net Income/Net Sales

7.Return on Equity Ratio = Net Income/Average Shareholders? Equity

8.Working Capital = Total Current Assets ? Total Current Liabilities

Apple 10-K; Sep 29, 12 (Selected statements) CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) Years ended September 29, 201 2 September 24, 2011 September 25, 201 0 $ $ $ Net sales 156,508 108,249 65,225 Cost of sales 87,846 64,431 39,541 68,662 43,818 25,684 3,381 2,429 1,782 10,040 7,599 5,517 13,421 10,028 7,299 55,241 33,790 18,385 522 415 155 55,763 34,205 18,540 14,030 8,283 4,527 Gross margin Operating expenses: Research and development Selling, general and administrative Total operating expenses Operating income Other income/(expense), net Income before provision for income taxes Provision for income taxes $ Net income 41,733 $ 25,922 $ 14,013 Earnings per share: Basic $ 44.64 $ 28.05 $ 15.41 $ 44.15 $ 27.68 $ 15.15 Diluted Shares used in computing earnings per share: Basic 934,818 924,258 909,461 945,355 936,645 924,712 Diluted Cash dividends declared per common share $ 2.65 $ 0.00 $ 0.00 CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands) September 29, 2012 September 24, 2011 ASSETS: Current assets: Cash and cash equivalents $ 10,746 $ 9,815 Short-term marketable securities 18,383 16,137 10,930 5,369 791 776 2,583 2,014 7,762 6,458 6,348 4,529 Accounts receivable, less allowances of $98 and $53, respectively Inventories Deferred tax assets Vendor non-trade receivables Other current assets Total current assets 57,653 44,988 92,122 55,618 15,452 7,777 1,135 896 4,224 3,536 5,478 3,556 Long-term marketable securities Property, plant and equipment, net Goodwill Acquired intangible assets, net Other assets Total assets $ 176,064 $ 116,371 $ 21,175 $ 14,632 LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities: Accounts payable Accrued expenses 11,414 9,247 5,953 4,091 38,542 27,970 2,648 16,664 1,686 10,100 Deferred revenue Total current liabilities Deferred revenue - non-current Other non-current liabilities Total liabilities 57,854 39,756 Commitments and contingencies CONSOLIDATED BALANCE SHEETS (cont) (In millions, except number of shares which are reflected in thousands) Shareholders' equity: Common stock, no par value; 1,800,000 shares authorized; 939,208 and 929,277 shares issued and outstanding, respectively 16,422 13,331 101,289 62,841 499 443 118,210 76,615 Retained earnings Accumulated other comprehensive income Total shareholders' equity Total liabilities and shareholders' equity $ 176,064 $ 116,371 CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) September 29 , 2012 Years ended September 24 , 2011 September 25 , 2010 $ $ $ Cash and cash equivalents, beginning of the year 9,815 11,261 5,263 Operating activities: Net income 41,733 25,922 14,013 3,277 1,814 1,027 1,740 1,168 879 4,405 2,868 1,440 Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization Share-based compensation expense Deferred income tax expense Changes in operating assets and liabilities: Accounts receivable, net ) (5,551 Inventories 143 (2,142 ) 275 (596 ) ) (15 Vendor non-trade receivables ) (1,414 (1,934 ) (2,718 ) (3,162 (1,391 ) (1,610 ) 4,467 2,515 6,307 2,824 1,654 1,217 2,552 4,495 778 50,856 37,529 18,595 Other current and non-current assets ) Accounts payable Deferred revenue Other current and non-current liabilities Cash generated by operating activities Investing activities: Purchases of marketable securities ) (151,232 (102,317 ) (57,793 ) 13,035 20,437 24,930 99,770 49,416 21,788 Proceeds from maturities of marketable securities Proceeds from sales of marketable securities Payments made in connection with business acquisitions, net of cash acquired ) (350 Payments for acquisition of property, plant and equipment (244 ) (638 ) (4,260 ) (2,005 ) (3,192 ) (116 ) (259 ) (20 ) (40,419 ) (13,854 ) ) (8,295 Payments for acquisition of intangible assets ) (1,107 Other ) (48 Cash used in investing activities ) (48,227 Financing activities: Proceeds from issuance of common stock 665 831 912 1,351 1,133 751 0 0 Excess tax benefits from equity awards Dividends and dividend equivalent rights paid ) (2,488 Taxes paid related to net share settlement of equity awards ) (1,226 Cash (used in)/generated by financing activities (520 ) (406 ) ) (1,698 1,444 1,257 Increase/(decrease) in cash and cash equivalents 931 (1,446 ) 5,998 Cash and cash equivalents, end of the year $ 10,746 $ 9,815 $ 11,261 $ 7,682 $ 3,338 $ 2,697 Supplemental cash flow disclosure: Cash paid for income taxes, net