Question

Refer to Apple's financial statements in Appendix A to answer the following.

Required:

1. What percent of the original cost of Apple's Property, Plant and Equipment account remains to be depreciated as of (a) September 30, 2017, and (b) September 24, 2016? Assume these assets have no salvage value and the entire account is depreciable. Hint: Accumulated Depreciation is listed under "Property, Plant and Equipment" in the notes to Apple's financial statements in Appendix A. 2. Much research and development is needed to create the next iPhone. Does Apple capitalize and amortize research and development costs over the life of the product, or are research and development costs expensed as incurred?

3. Compute Apple's total asset turnover for the year ended (a) September 30, 2017, and (b) September 24, 2016. Assume total assets at September 26, 2015, are $ 290,345 ($ millions).

4. Using the results in part 3 , is Apple's asset turnover on a favorable or unfavorable trend?

Refer to Apples financial statements in Appendix A to answer the following. Required: 1. What percent of the original cost o

4. Using the results in part 3, Is Apples asset turnover on a tavolable or Uhlavolable trend? Complete this question by enter

at September 26, 2015, are $290,345 ($ millions). 4. Using the results in part 3, is Apples asset turnover on a favorable or

Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Using the resu

Appendix A Financial Statement Information A APPLE September 24, 2016 $ Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions,

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APPLE Apple Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY (In millions, except number of shares which are reflected in

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✔ Recommended Answer
Answer #1
1) Formula
Book PPE % of Original Cost
a) Sept 30 2017 PPE book value/PPE gross value 33783 / 75076 45.00 %
b) Sept 24 2016 27010 / 61245 44.10 %
2) Research and Developments costs are:
a) Sept 30 2017 $11581m
b) Sept 24 2016 $10045m
3)
Total Assets Turnover
a) Sept 30 2017 Revenues / Total Assets 229234/375319 0.61 times
b) Sept 24 2016 215639/321686 0.67 times
4) Is Apple's Asset turnover trend = Unfavorable (Detoriating) as reduced to 0.61 from 0.67.
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