Refer to Apple’s financial statements in Appendix A to answer the following.
1. What percent of the original cost of Apple’s Property, Plant and Equipment account remains to be depreciated as of

(a) September 28, 2019,

(b) September 29, 2018? Assume these assets have no salvage value and the entire account is depreciable.

2. Much research and development are needed to create the next iPhone. Do companies capitalize and amortize research and development costs over the life of the product, or are research and development costs expensed as incurred?

3. Compute Apple’s total asset turnover for the year ended (a) September 28, 2019, and (b) September 29, 2018. Total assets at September 30, 2017, are $375,319 ($ millions).
4. Using the results in part 3, is the change in Apple’s asset turnover favorable or unfavorable?