Question

Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 29, 2018 September 30, 2017 ASSETS Current assets: Cash and cash equivalents 25,913 20,289 Marketable securitles 40.388 53.892 Accounts receivable, net 23,186 17,874 Inventories 3.956 4.855 Vendor non-trade receivables 25,809 17,799 Other current assets 12.087 13.936 Total current assets 128,645 131,339 Non-current assets Marketable securities 170.799 194.714 Property, plant and equipment, net 41,304 33,783 Other non-current assets 22,283 18.177 Total non-current assets 234.386 246.674 Total assets $ 375,319 365,725 LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities: Accounts payable $ 55,888 44,242 Other current liabilities 32.687 30.551 Deferred revenue 7,543 7,548 Commercial paper 11.964 11.977 Term debt 8,784 6,496 Total current liabilities 116.866 100.814 Non-current labilities: Deferred revenue 2,836 2,797 Term debt 93.735 97.207 Other non-current llabilities 45,180 40,415 Total non-current liabilitles 141.712 140.458 Total liabilities 258,578 241,272 ommitments and contingencies Shareholders' equity: Common stock and additional paid-in capital, S0.00001 par value: 12,600,000 shares authorized: 4.754.986 and 5.126.201 shares issued and outstandina. resoectivelv 40.201 35.867 Retained earnings 70.400 98.330 Accumulated other comprehenslve income/(loss) (3,454) (150) Total shareholders' equity 107,147 134,047 Total liabilities and shareholdere' enuitu 365 725 375 319 See accompanying Notes to Consolidated Financial Statements Apple Inc. 1 2018 Form 10-K1 40 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 29, 2018 September 30, 2017 NAtsales $ $ 265,595 229,234 $ 215,639 GAR of sales 131.376 163.756 141.048 Gross margin 101,839 88,186 84,263 QRAraiogexpenses: Research and development 14,236 10,045 11,581 Selling, general and administratlve 14.194 16.705 15.26 Total operating expenses 30,941 26,842 24,239 QRArANOSIncome 70,898 61,344 60,024 Qibencome/(expense), net 2.005 2.745 1.348 oCAPAbetore provision for income taxes 72,903 64,089 61,372 ROISlentor income taxes 13,372 15,738 15,685 NAincome $ 48,351 59,531 45,687

Answer 1

Answer to first 4 parts of the question: 1) Working capital for 2018 = Total current assets of 2018 - Total current liabilities of 2018 Total current assets of 2018 Total current liabilities of 2018 Working capital for 2018 $131,339 millions $116,866 millions $14,473 millions ($131339 - $116866] 2) Current ratio for 2018 - Total current assets of 2018 / Total current liabilities of 2018 Total current assets of 2018 Total current liabilities of 2018 Current ratio for 2018 $131,339 millions $116,866 millions 1.12 ($131339 / $116866] 3) Debt ratio for 2018 - Total liabilities for 2018 / Total assets for 2018 Total liabilities for 2018 Total assets for 2018 Debt ratio for 2018 $258,578 millions $365,725 millions 0.7070 [$258578/ $365725) = 70.70%

4) Debt-to-equity ratio for 2018 - Total liabilities for 2018 / Stockholders' equity for 2018 Total liabilities for 2018 Shareholders' equity for 2018 Debt-to-equity ratio for 2018 $258,578 millions $107,147 millions 2.4133 ($258578 / $107147] or = 241.33%