Refer to Apple’s financial statements in Appendix A for the following questions.

Required 

1. What amount of total liabilities does Apple report for each of the fiscal years ended September 26, 2015, and September 27, 2014?

2. What amount of total assets does it report for each of the fiscal years ended September 26, 2015, and September 27, 2014?

3. Compute its debt ratio for each of the fiscal years ended September 26, 2015, and September 27, 2014.

(Report ratio in percent and round it to one decimal.)

4. In which fiscal year did it employ more financial leverage: September 26, 2015, or September 27, 2014? Explain.

Fast Forward 5. Access Apple’s financial statements (10-K report) for a fiscal year ending after September 26, 2015, from its website (Apple.com) or the SEC’s EDGAR database (SEC.gov). Recompute its debt ratio for any subsequent year’s data and compare it with the debt ratio for 2015 and 2014.

Data From Appendix A Apple Financial Statement

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Years ended Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) September 26, 2015 September 27, 2014 September 28, 2013 Net sales Cost of sales Operating expenses $ 233,715 $ 182,795 $ 170,910 140,089 112,258 106,606 Gross margin Research and development Selling, general and administrative Total operating expenses Operating income 93,626 70,537 64,304 8,067 6,041 4,475 14,329 11,993 10,830 22,396 18,034 15,305 71,230 52,503 48,999 Other income, net 1,285 980 1,156 Income before provision for income taxes 72,515 53,483 50,155 Provision for income taxes 19,121 13,973 13,118 $ 53,394 39,510 37,037 Net income Earnings per share: Basic Diluted 9.28 6.49 5.72 9.22 6.45 5.68 5,753,421 6,085,572 6,477,320 5,793,069 6,122,663 6,521,634 $ 1.98 $ 1.82 1.64 See accompanying Notes to Consolidated Financial Statements. Shares used in computing earnings per share: Basic Diluted Cash dividends declared per common share