The financial statements of Apple Inc. are presented in Appendix A at the end of this textbook. Instructions for accessing and using the company’s complete annual report, including the notes to the financial statements, are also provided in Appendix A.

Instructions

Answer the following questions using Apple’s Consolidated Statement of Income.

(a) What was the percentage change in (1) sales and in (2) net income from 2011 to 2012 and from 2012 to 2013?

(b) What was the company’s gross profit rate in 2011, 2012, and 2013?

(c) What was the company’s percentage of net income to net sales in 2011, 2012, and 2013? Comment on any trend in this percentage.