Question

Apple Inc. popularized both the personal computer and the easy- to- use graphic interface. Today it competes against many companies that rely on the Windows and Android operating systems. The company’s statement of earnings for a recent year is presented below (in millions of U. S. dollars):
Required
1. Compute the return on assets based on the information presented in the statement of earnings. Apple’s total assets averaged $ 146,218 million for that year.
2. Assume that the following hypothetical additional transactions occurred during the fiscal year. Complete the following tabulation, indicating the sign and amount of the effect of each additional transaction (+ for increase, – for decrease, and “N” for no effect). Consider each item independently and ignore income taxes.
a. Recorded sales on account of $ 700 and related cost of sales of $ 475.
b. Incurred additional research and development expense of $ 100, which was paid in cash.
c. Issued additional shares for $ 350 cash.
d. Declared and paid dividends of $ 90.


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  • CreatedAugust 04, 2015
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