Your parents are considering investing in Apple Inc. common stock. They ask you, as an accounting expert, to make an analysis of the company for them. Financial statements of Apple are presented on the following:

Instruction

Compute for all 5 years, (1) Debt to assets Ratio and (2) Times Interest Earned

Debt to Assets Ratio: _______% (2018) ____________% (2017) ___________% (2016) __________% (2015) ________% (2014)

Times Interest Interest Earned: ______times ________times ________times ______times ______times

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Compute for all 5 years, (1) Profit Margin, (2) Asset Turnover, (3) Return on Assets and (4) return on Common StockHolder's Equity

(I NEED HELP !! Pls answer it, fast!)

A-2 APPENDIX A Specimen Financial Statements: Apple Inc. Apple Inc. Consolidated Statements of Comprehensive Income (in millions) Net income Other comprehensive income/(loss): Change in foreign currency translation, net of tax effects of $(1),$(77) and $8, respectively (525) Years ended Change in unrealized gains/losses on derivative instruments: Change in fair value of derivatives, net of tax benefit/(expense) of $(149),$(478) and $(7), respectively Adjustment for net (gains)/losses realized and included in net income, net of tax expense/(benefit) of $(104),$475 and $131, respectively Total change in unrealized gains/losses on derivative instruments, net of tax 905 (162) (3,407) (782) (741) Change in unrealized gains/losses on marketable securities: Change in fair value of marketable securities, net of tax benefit/ (expense) of $1,156,$425 and $(863), respectively Adjustment for net (gains)/losses realized and included in net income, net of tax expense/(benefit) of $21,$35 and $(31), respectively \begin{tabular}{rrr} 1 & (64) & 56 \\ \cline { 3 - 3 }(3,406) & (846) & 1,638 \\ \hline \end{tabular} Total other comprehensive income/(loss) Total comprehensive income Apple Inc. Consolidated Balance Sheets (in millions, except number of shares which are reflected in thousands and par value) ASSETS: Current assets: Cash and cash equivalents \begin{tabular}{cc} September 29, September 2018 & 2017 \\ \hline \end{tabular} Marketable securities Accounts receivable, net Inventories Vendor non-trade receivables Other current assets Total current assets Non-current assets: Marketable securities Property, plant and equipment, net Other non-current assets Total non-current assets Total assets LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities: Commitments and contingencies Shareholders' equity: Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 4,754,986 and 5,126,201 shares issued and outstanding, respectively Retained earnings \begin{tabular}{rr} $25,913 & $20,289 \\ 40,388 & 53,892 \\ 23,186 & 17,874 \\ 3,956 & 4,855 \\ 25,809 & 17,799 \\ 12,087 & 13,936 \\ \hline 131,339 & 128,645 \end{tabular} A nola Ine Apple Inc. Consolidated Statements of Cash Flows (in millions) Years ended Cash and cash equivalents, beginning of the year Operating activities: Net income Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization Share-based compensation expense Deferred income tax expense/(benefit) Other 59,53148,35145,687 Changes in operating assets and liabilities: Accounts receivable, net Inventories Vendor non trade receivables 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 Proceeds from maturities of marketable securities Proceeds from sales of marketable securities Payments for acquisition of property, plant and equipment 10,9035,340(32,590)(444)10,1574,8405,966(166)10,5054,2104,938486 Payments made in connection with business acquisitions, net \begin{tabular}{ccc} (5,322) & (2,093) & 527 \\ 828 & (2,723) & 217 \\ (8,010) & (4,254) & (51) \\ (423) & (5,318) & 1,055 \\ 9,175 & 8,966 & 2,117 \\ (44) & (626) & (1,554) \\ 38,490 & 1,125 & (1,906) \\ \hline 77,434 & 64,225 & 66,231 \\ \hline \end{tabular} Purchases of non-marketable securities Proceeds from non-marketable securities Other Cash generated by/(used in) investing activities Financing activities: Make a 5-year trend analysis, using 2014 as the base year, of (1) net sales and (2) net income. (To satisfy this requirement you must access information regarding performance in prior years. This information is provided in the complete annual report available on the company's website.) (Round percentages to 0 decimal places, e.g. 15% and enter amounts in millions.) APPLE INC. Trend Analysis of Net Sales and Net Income For the Three Years Ended 2018 (1) Net sales 2018 2017 2016 Trend % % % (2) Net income $ 59,531 $ 48,351 $ 45,687 Trend % % % A-2 APPENDIX A Specimen Financial Statements: Apple Inc. Apple Inc. Consolidated Statements of Comprehensive Income (in millions) Net income Other comprehensive income/(loss): Change in foreign currency translation, net of tax effects of $(1),$(77) and $8, respectively (525) Years ended Change in unrealized gains/losses on derivative instruments: Change in fair value of derivatives, net of tax benefit/(expense) of $(149),$(478) and $(7), respectively Adjustment for net (gains)/losses realized and included in net income, net of tax expense/(benefit) of $(104),$475 and $131, respectively Total change in unrealized gains/losses on derivative instruments, net of tax 905 (162) (3,407) (782) (741) Change in unrealized gains/losses on marketable securities: Change in fair value of marketable securities, net of tax benefit/ (expense) of $1,156,$425 and $(863), respectively Adjustment for net (gains)/losses realized and included in net income, net of tax expense/(benefit) of $21,$35 and $(31), respectively \begin{tabular}{rrr} 1 & (64) & 56 \\ \cline { 3 - 3 }(3,406) & (846) & 1,638 \\ \hline \end{tabular} Total other comprehensive income/(loss) Total comprehensive income Apple Inc. Consolidated Balance Sheets (in millions, except number of shares which are reflected in thousands and par value) ASSETS: Current assets: Cash and cash equivalents \begin{tabular}{cc} September 29, September 2018 & 2017 \\ \hline \end{tabular} Marketable securities Accounts receivable, net Inventories Vendor non-trade receivables Other current assets Total current assets Non-current assets: Marketable securities Property, plant and equipment, net Other non-current assets Total non-current assets Total assets LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities: Commitments and contingencies Shareholders' equity: Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 4,754,986 and 5,126,201 shares issued and outstanding, respectively Retained earnings \begin{tabular}{rr} $25,913 & $20,289 \\ 40,388 & 53,892 \\ 23,186 & 17,874 \\ 3,956 & 4,855 \\ 25,809 & 17,799 \\ 12,087 & 13,936 \\ \hline 131,339 & 128,645 \end{tabular} A nola Ine Apple Inc. Consolidated Statements of Cash Flows (in millions) Years ended Cash and cash equivalents, beginning of the year Operating activities: Net income Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization Share-based compensation expense Deferred income tax expense/(benefit) Other 59,53148,35145,687 Changes in operating assets and liabilities: Accounts receivable, net Inventories Vendor non trade receivables 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 Proceeds from maturities of marketable securities Proceeds from sales of marketable securities Payments for acquisition of property, plant and equipment 10,9035,340(32,590)(444)10,1574,8405,966(166)10,5054,2104,938486 Payments made in connection with business acquisitions, net \begin{tabular}{ccc} (5,322) & (2,093) & 527 \\ 828 & (2,723) & 217 \\ (8,010) & (4,254) & (51) \\ (423) & (5,318) & 1,055 \\ 9,175 & 8,966 & 2,117 \\ (44) & (626) & (1,554) \\ 38,490 & 1,125 & (1,906) \\ \hline 77,434 & 64,225 & 66,231 \\ \hline \end{tabular} Purchases of non-marketable securities Proceeds from non-marketable securities Other Cash generated by/(used in) investing activities Financing activities: Make a 5-year trend analysis, using 2014 as the base year, of (1) net sales and (2) net income. (To satisfy this requirement you must access information regarding performance in prior years. This information is provided in the complete annual report available on the company's website.) (Round percentages to 0 decimal places, e.g. 15% and enter amounts in millions.) APPLE INC. Trend Analysis of Net Sales and Net Income For the Three Years Ended 2018 (1) Net sales 2018 2017 2016 Trend % % % (2) Net income $ 59,531 $ 48,351 $ 45,687 Trend % % %