PART $1(38$ pts$)$: To answer the below questions $1-5,$ please use the attached financial statements of Apple company, presented in Appendix $1.$

Question $1(12$ pts$)$: Using the year $2017$ as the base year, compute trend percentages for fiscal years $2017,2018,$ and $2019$ for total net sales, total cost of sales, operating income, and net income and fill out the table $($Only answers should be given. No partial credit!$)$

$\backslash$begin$\{$tabular$\}\{|$l$|$l$|$l$|$l$|\}$

$\backslash$hline & $2019$ & $2018$ & $2017\backslash \backslash$

$\backslash$hline Total Net Sales & & & $\backslash \backslash$

$\backslash$hline The Cost of Sales & & & $\backslash \backslash$

$\backslash$hline Operating Income & & & $\backslash \backslash$

$\backslash$hline Net Income & & & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

Question $2(6$ pts$)$: By referring your answers to question $1$; comment on if there is a clear increasing$/$decreasing trend for the specified items.

If there are any trends, please specify whether the trends are compatible with each other or not $($if trend percentages go hand$-$in$-$hand for all items or diverge from each other$).$ If the trend percents diverge from each other, what could be the possible reason for it$?$ Answer:

Question $3(8$ pts$)$:

a$.$ Calculate the profit margin ratio and return on assets for the years $2019$ and $2018,$ and fill in the below table. $($Only answers should be given. No partial credit!$)$

b$.$ Did profit margin improve or worsen for Apple? $($Explain all your rationale, please. Only the answer of improve$/$worsen will not be accepted$)$

Answer:

c$.$ Based on return on assets, please comment on whether Apple's operating efficiency improved or worsened in $2019$ versus $2018.($Explain all your rationale, please. Only the answer of improve$/$worsen will not be accepted$)$

Answer:

Question $4(4$ pts$)$: Using current assets as a percent of total assets to measure liquidity, did Apple's assets become more liquid or less liquid in $2019?($Explain all your rationale, please. Only the answer of yes$/$no will not be accepted.$)$

Answer:

Question $5(8$ pts$)$: Here are the additional key figures for Apple and Google.

a$.$ If Google paid a dividend, would the value of retained earnings increase or decrease? $($Explain your rationale, please. Only the answer of increase$/$decrease will not be accepted$)$

Answer:

b$.$ Which company has the better gross $($profit$)$ margin ratio on sales? $($Show all your calculations, please. Only the answer of Apple$/$Google will not be accepted$)$