rect Assignment Saved He Use Apple's financial statements in Appendix A to answer the following. Required: 1. Compute Apple's return on total assets for the years ended September 24, 2016, and September 26, 2015. (Apple's total assets for 2014 is $231,839.) 2. Is Apple's return on total assets on a favorable or unfavorable trend? 3. Recently, Apple acquired 100% of Beats Electronics (Beats by Dre) for $3 billion. Will Apple account for Beats using the equity method or consolidation? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute Apple's return on total assets for the years ended September 24, 2016, and September 26, 2015. (Apple's total assets for 2014 is $231,839.) (Round your percentage answers to 1 decimal place.) Return on Total Assets September 24, 2016 September 26, 2015 Required Required 2 > roject Assignment Saved Help Sav Use Apple's financial statements in Appendix A to answer the following. Required: 1. Compute Apple's return on total assets for the years ended September 24, 2016, and September 26, 2015. (Apple's total assets for 2014 is $231,839.) 2. Is Apple's return on total assets on a favorable or unfavorable trend? 3. Recently, Apple acquired 100% of Beats Electronics (Beats by Dre) for $3 billion. Will Apple account for Beats using the equity method or consolidation? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Is Apple's return on total assets on a favorable or unfavorable trend? Apple's return on total assets Netflix Dashboard Chapter 13 Projes 3 Project Assignment Saved Help sa Use Apple's financial statements in Appendix A to answer the following. Required: 1. Compute Apple's return on total assets for the years ended September 24, 2016, and September 26, 2015. (Apple's total assets for 2014 is $231,839.) 2. Is Apple's return on total assets on a favorable or unfavorable trend? 3. Recently, Apple acquired 100% of Beats Electronics (Beats by Dre) for $3 billion, Will Apple account for Beats using the equity method or consolidation? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Recently, Apple acquired 100% of Beats Electronics (Beats by Dre) for $3 billion. Will Apple account for Beats using the equity method or consolidation? Will Apple account for Beats using the equity method or consolidation? 14 Appendix A Financial Statement information APPLE September 26, 2015 Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 24, 2016 ASSETS Current assets Cash and cash equivalents 20.484 Short-term marketable securities 46,671 Accounts receivable, less allowances of $53 and 56 respectively 15.754 Inventories 2.132 Vendor non-trade receivables 13.545 Other current assets 8.283 Total current assets 106,869 Long-term marketable securities 170,430 Property, plant and equipment, net 27.010 Goodwill 5.414 Acquired intangible assets, net 36206 Other non-current assets 8,757 Total assets 321.685 21.120 20,481 16849 2.349 11.494 15.085 89,378 164,065 22.471 5.116 5.422 20.145 37.294 22.027 8 ORO 35.490 25.181 900 8.499 2.500 80,610 8105 1500 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable Accrued expenses Deferred revenue Comercial paper Current portion of long-term debt Total current liabilities Deferred revenue, non-current Long-term dcbt Other non-current liabilities Total liabilities Commitments and contingencies Shareholders' equity Common stock and additional paid-in capital, 50.00001 par value: 12.000.000 shares uthorized: 5.346.166 and 5.578.751 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income (los) Total shareholders' equity Total liabilities and shareholders' equity See accompanying Notes to Consolidated ancial Statements 79.006 2910 75.427 36,074 193.437 51129 1327 120 900 31.151 96,364 614 12309 1.686 119.155 APPI Srpflemi 182.795 112.358 70.537 Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) Years ended September 24, 2016 September 26, 2015 Net sales 215,639 2 33,715 Cast of sales 131,376 140,089 Gross margin 84.263 Operating expenses Research and development 10,045 Selling general and administrative 14194 Total operating expenses 24.239 Operating income Other income.net 1 US Income before provision for income taxes 61.172 Provision for income taxes Net income S 4 5.687 $ 53,994 Ella 6.041 11993 TROBA S2503 90 53.483 13973 39.510 $ 649 6.45 Earnings per share: Basic 5 8 .15 S 9. 285 Diluted S 831 9. 225 Shares used in computing earnings per share: Basic 5.490,820 5.753. 421 Diluted 5.500.281 5.791,069 Cash dividends declared per common share * 2.18 See accompanying Notes to Consolidated Financial Statements. 6 085572 6.122661 1.82 Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME in millions) Years ended September 24, 2016 September 26, 2015 September 27, 2014 Net income S 45087 S S11945 39 $10 Other comprehensive income (loss): Change in foreign currency translation, net of tax effects of $8.5201 and 550, respectively Change in unrealized gainvlosses on derivative Instruments: Change in fair value of derivatives, set of tax benefit (expense) of S(7), 5(441) and (297. respectively 2.905 1.390 Adjustment for net pains) losses realized and included in net income net of tax expense benefit of $131,5630 and 5(36), respectively (3.497) Total change in unrcalized pains/losses on derivative instruments, net of tax (592) Change in unrealized gains/losses on marketable securities Change in fair value of marketable securities, net of tax benefit (expeme) of S(863). 5264 and S(1531 respectively 285 Adjustment for not (gains) losses realized and included in net income. net of tax expense benefit of 501033) 571, respectively 56 Total change in unrealized g o sses on marketable securities, net oftas 1615 4 Total other comprehensive income foss) (1427) Total comprehensive income 166 $1.067 See accompanying to Consolidated ancial Statements 1599 Appendix A Financial Statement Information APPLE l 715 Apple Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In millions, except number of shares which are reflected in thousands) Accumulated Other Common Stock and Comprehensive Total Additional Paid In Capital Retained Income Shareholders' Amount Earnings (Loss) Fquity Balances as of September 28, 2013 6,294494 104,256 (471) 121.549 Net income 39.510 19 510 Other comprehensive income (loss) 1,553 1.553 Dividends and dividend equivalents declared (11.215) Repurchase of common stock (488 677) (45.000 (45.000) Share-based compensation 2.863 Common stock issued, not of shares withheld for employee taxes 60 144 (49) (399) Tax benefit from equity awards, including transfer pricing adjustments 715 Balances as of September 21, 2014 5866.161 2011 87.152 111547 Net income 51194 53394 Other comprehensive income (loss) (1.427) Dividends and dividend equivalents declared (11.627) (11.627) Repurchase of common stock (325.032) - (36,026) (36,026) Share-based compensation 3.586 3.586 Common stock issued, net of shares withheld for employee Cases 37.624 ON Tax benefit from equity awards, including transfer pricing adjustments 748 7 Balances as of September 26, 2015 5.578.753 $ 27,416 5 92284 119.155 Net income 45.687 15,687 Other comprehensive income dow) Dividends and dividend equivalents declared (12. Repurchase of common stock 279.809) (29,000 (29.000 Shore-based compensation Common stock issued, net of shares withheld for employee taxes 37.022 (806) Tax benefit from equity wards, including transfer pricing adjustments 179 Balances as of September 24, 2016 5316166 5 312515 16456445178.249 See accompanying Notes to Consolidated nancial Statements 979 APPLE September 27, 2014 14259 39.510 Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) Years ended September 24, 2016 September 26, 2015 Cash and cash equivalent, beginning of the year 21.120 344 Operating activities Net income 45.687 53.394 Adjustments to reconcile net income to cash generated by operating activities Depreciate and mortation 10 505 11.257 Share based compensation expense 4210 156 Deferred income tax expense 4918 Changes in operating assets and liabilities: Accounts receivable.net 1.095 611 Inveries Vendor non-trade receivables 1715) Other current and currentes 1.000 (179) Accounts payable 1.791 5.400 Deferred revenue (1354) 1.00 Other current and curren (2.104) 75 151) 2220 5918 1,160 59,713 (1424283 21.258 01516 (166,40 145 107,447 Investing activities Purchases of mathe securities Proceeds from maturities of marketable securities Proceeds from wes of math securities Payments made in enection with busines s Poments for acquisition property, plant and equipment Pryments for the intangibles Payments for twic investments 217.12 INIO 19.01 01.765 9.570 (341) (12.734) 14 ( IN (110) (45.07 (56.274) 2579 495 710 (1.15 11.125 Cash used inimesting activities mancing w it Proceeds from issance of common stock Excess tax benches from equity awards Payments for r ed to share will of equity awards Payments for dividends and diedeguivalents Repurchases of common stock Proceeds frissuance of t he Rays of term del Change in co c ial paper, Cashed in financing activities Increase (decrease in casa cash valents Cach and cash equivalents, end of the year (1.5703 (12.150 29,7320 24.954 (2.500 (97) (1.49 (11.561) ( 253 27.114 11,560 2191 (17.716) 7215 . 37.549 Supplemental cash flow discowe: Cash paid for income tax net Cash paid for interest 35 S 10.036 10.45 1.316 5 See companying Notes to Comblidated Financial Statements