Apple Inc.* presented this selected financial data with its 2008 annual report.
Required
a. 1. For consolidated statements of operations, prepare a horizontal common-size analysis for 2006–2008. Use 2006 as the base.
2. Comment on the results in (1).
b. 1. For stock-based compensation expense, prepare a horizontal common-size analysis for 2006–2008. Use 2006 as the base.
2. Comment on the results in (1).
3. Comment on any distortion by using 2006 as the base. (This relates to a.1 and b.1)
c. 1. For consolidated statements of operations, prepare a vertical common-size analysis for 2006– 2008. Use net sales as the base.
2. Comment on the results in (1).
d. Based on these data, compute the following for 2006–2008:
1. Price/earnings ratio
2. Dividend yield
3. Comment on the results in (1) and (2).