Question

please explain as i am lost on where to start even. let me know if you need more of the appendix A. thank you!

AA 11-1 Company Analysis LO C2, A1, A4 Use Apple's financial statements in Appendix A to answer the following. Required: 1. How many shares of Apple common stock are issued and outstanding at() September 30, 2017, and (b) September 24, 2016? 2. What is the total amount of cash dividends paid to common stockholders for the years ended (0) September 30, 2017 and (b) September 24, 2016? 3. Identify basic EPS amounts for fiscal years (a) 2017 and (b) 2016. 4. Is Apple's EPS on a favorable or unfavorable trend from 2016 to 2017? 5. If Apple buys back outstanding shares from investors, would you expect EPS to increase or decrease from the buyback? 3ook orences Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 How many shares of Apple common stock are issued and outstanding at (a) September 30, 2017, and (b) September 24, 2016? (Enter the number of shares in thousands.) Common Stock (a) September 30, 2017 (b) September 24, 2016 Required 2 >

Answer 1

1)

Shares issued and outstanding can be seen from the Shareholders’ equity section of Consolidated Balance sheets.

Common stock issued and outstanding at
	Common stock issued and outstanding at	Common stock
(a)	September 30, 2017	5,126,201
(b)	September 24, 2016	5,336,166

2)

Cash dividends paid can be seen from financing activities of the Consolidated statement of cash flows.

Payments of dividends and dividends equivalents are the details of dividend paid.

Cash dividend paid
	Common stock issued and outstanding at	Cash dividends
(a)	September 30,2017	$        12,769	million
(b)	September 24,2016	$        12,150	million

3)

Basic EPS can be seen from the Consolidated statement of operations under earnings per share

Basic EPS
		Basic EPS
(a)	2017	$            9.27
(b)	2016	$            8.25

4)

Since basic EPS has gone up from $8.35 in 2016 to $9.27 in 2017 it is favorable

Also, diluted EPS also has gone up from $8.31 in 2016 to $9.21 in 2017 -Favorable

Apples' EPS

Favorable

5)

EPS = Earnings for the period/Weighted average number of shares outstanding

Since Company buyback shares the number of the weighted average share will reduce which will increase earnings per share (EPS)

Would you expect EPS to increase or decrease from buyback ?

Increase