Question

Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) Years ended September 28, 2019 September 29, 2018 September 30, 2017 $ $ Net sales: Products Services Total net sales 213,883 $ 46,291 260,174 225,847 39,748 265,595 196,534 32,700 229.234 Cost of sales: Products Services Total cost of sales Gross margin 144,996 16,786 161,782 98,392 148,164 15,592 163,756 101,839 126,337 14,711 141,048 88,186 Operating expenses: Research and development Selling, general and administrative Total operating expenses 16,217 18,245 34,462 14,236 16,705 30,941 11,581 15,261 26,842 Operating income Other income (expense), net Income before provision for income taxes Provision for income taxes Net income 63,930 1,807 65,737 10,481 55,256 70,898 2,005 72,903 13,372 59,531 $ 61,344 2,745 64,089 15,738 48,351 $ Earnings per share: Basic Diluted $ 11.97 11.89 $ $ 12.01 11.91 $ $ 9.27 9.21 Shares used in computing earnings per share: Basic Diluted 4,617,834 4,648,913 4,955,377 5,000,109 5,217,242 5,251,692 See accompanying Notes to Consolidated Financial Statements.

can someone explain to me how to do this?

Answer 1

A common size statement is an another way of presenting an income statement by expressing various line items as percentage based on sales. In other words the percentage is calculated as follows for all the above mentioned expenses ot=r income by keeping sales as the base.

= Cost of goods sold / Sale *100

It reflects the effect of each line item to the company's financial position

Particulars Sale Cost of Goods sold Gross profit Operating expenses Operating Income Non-Operating Income Income Tax expense Net income Current Previous Increase/ year - Year - Decrease 2018 2017 100% 100% 0.00% 61.66% 71.77% -10.11% 38.34% 44.87% -6.53% 11.65% 13.66% -2.01% 26.69% 31.21% -4.52% 0.75% 1.40% -0.64% 5.03% 8.01% -2.97% 22.41% 24.60% -2.19%

Particulars Current Previous year Year - 2019 2018 100% 100% 62.18% 61.66% 37.82% 38.34% 13.25% 11.65% 24.57% 26.69% 0.69% 0.75% 4.03% 5.03% 21.24% 22.41% Increase/ Decrease 0.00% 0.53% -0.53% 1.60% Sale Cost of Goods sold Gross profit Operating expenses Operating Income Non-Operating Income Income Tax expense Net income -2.12% -0.06% -1.01% -1.18%