The following summarized data (amounts in millions) are taken from the September 27, 2014, and September 28,
Question:
The following summarized data (amounts in millions) are taken from the September 27, 2014, and September 28, 2013, comparative financial statements of Apple Inc., a manufacturer of mobile communication and media devices, personal computers, portable digital music players, and seller of a variety of related software, services, accessories, networking solutions, and third-party digital content and applications:
(Amounts Expressed in Millions) | ||||||
For the Fiscal Years Ended September 27 and September 28, respectively: | 2014 | 2013 | ||||
Net sales | $ | 108,300 | $ | 65,270 | ||
Costs of sales | 64,480 | 39,590 | ||||
Operating income | 33,850 | 18,430 | ||||
Net income | $ | 25,950 | $ | 14,060 | ||
At Year End: Assets | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 10,230 | $ | 11,070 | ||
Short-term marketable securities | 16,180 | 14,410 | ||||
Accounts receivable, less allowances of $84 and $99, respectively | 5,420 | 5,570 | ||||
Inventories | 830 | 1,100 | ||||
Deferred tax assets | 2,070 | 1,680 | ||||
Vendor nontrade receivables | 6,400 | 4,460 | ||||
Other current assets | 4,580 | 3,490 | ||||
Total current assets | 45,710 | 41,780 | ||||
Long-term marketable securities | 85,670 | 25,440 | ||||
Property, plant, and equipment, net | 7,830 | 22,070 | ||||
Goodwill | 960 | 790 | ||||
Acquired intangible assets, net | 3,590 | 390 | ||||
Other assets | 3,610 | 2,310 | ||||
Total assets | $ | 147,370 | $ | 92,780 | ||
Liabilities and Shareholders’ Equity | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 14,680 | $ | 12,060 | ||
Accrued expenses | 9,300 | 5,770 | ||||
Deferred revenue | 4,150 | 3,030 | ||||
Commercial paper | 6,398 | 0 | ||||
Total current liabilities | 34,528 | 20,860 | ||||
Deferred revenue—noncurrent | 1,740 | 1,190 | ||||
Long-term debt | 23,602 | 17,260 | ||||
Other noncurrent liabilities | 10,160 | 5,580 | ||||
Total liabilities | 70,030 | 44,890 | ||||
Shareholders’ Equity: | ||||||
Common stock and additional paid-in capital, $0.00001 par value, 1,900,000 shares authorized; 929,430 and 916,130 shares issued and outstanding, respectively | 13,390 | 10,710 | ||||
Retained earnings | 63,450 | 37,220 | ||||
Accumulated other comprehensive income (loss) | 5600 | (-40) | ||||
Total shareholders’ equity | 77,340 | 47,890 | ||||
Total liabilities and shareholders’ equity | $ | 147,370 | $ | 92,780 | ||
At September 29, 2012, total assets were $47,820 and total shareholders’ equity was $31,800.
a. Calculate Apple Inc.’s working capital, current ratio, and acid-test ratio at September 27, 2014, and September 28, 2013. (Round your ratio answers to 1 decimal place. Enter "Working capital" in million of dollars.)
b. Calculate Apple’s ROE for the years ended September 27, 2014, and September 28, 2013. (Round your answers to 1 decimal place.)
2014 2015
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c. Calculate Apple’s ROI, showing margin and turnover, for the years ended September 27, 2014, and September 28, 2013. (Round "Turnover" answers to 2 decimal places. Round your percentage answers to 1 decimal place.)
2014 2015
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margin=
turnover=
Accounting What the Numbers Mean
ISBN: 978-1259535314
11th edition
Authors: David Marshall, Wayne McManus, Daniel Viele