All the figures below are presented in millions except for the per share data. So yes, Apple generated $170 billion dollars in net sales in 2013.

2013 2012 2011

Net sales $ 170,910 $ 156,508 $ 108,249

Net income $ 37,037 $ 41,733 $ 25,922

Earnings per share:

Basic $ 40.03 $ 44.64 $ 28.05

Diluted $ 39.75 $ 44.15 $ 27.68

Cash dividends declared per share $ 11.40 $ 2.65 $0

Shares used in computing earnings

per share:

Basic 925,331 934,818 924,258

Diluted 931,662 945,355 936,645

Total cash, cash equivalents and

marketable securities $ 146,761 $ 121,251 $ 81,570

Total assets $ 207,000 $ 176,064 $ 116,371

Long-term debt $ 16,960 $0 $0

Long-term obligations (a) $ 20,208 $ 16,664 $ 10,100

Total liabilities $ 83,451 $ 57,854 $ 39,756

Total shareholders' equity $ 123,549 $ 118,210 $ 76,615

1. Compute the Debt Ratio and the Equity Ratio for all of the years. Explain the ratios. (15 points)

2. Why would a company so cash rich like Apple ($146 billion dollars reported in cash and cash equivalents and marketable securities) take on more long-term debt in 2013? (10 points)