Question

Please answer every question listed. Thank you SO much.

Use the information contained in these financial statements and notes to complete this case. All answers should be for the most current year (September 24, 2016) unless asked otherwise. Many companies show amounts in the thousands or millions - please state amounts as shown on the financial statements. Do not add zeros. You do not need to include dollar signs. Selected financial statements of Apple, Inc. follow. CONSOLIDATED STATEMENTS OF OPERATIONS (In milions, except number of shares which are reflected in thousands and per share amounts) Years ended September 24, September 26 Setembe 27. 2015 Net sales 215,639 5 233.7153 182,795 Cost of sales 131,378 140.089 112.258 Gross margin Operating expenses Research and development Selling, now and administrative Total operating expenses 10,045 14.194 8.067 14329 6.041 11.990 50,024 2500 Operating income Other incom pense.net Income before provision for income taxes Provision for income Not income 62372 15.685 71230 1295 721515 19.121 13973 Earnings per share Base Diluted 835 S 8 315 9.29 5.45 Share used in computing earnings per share: 5470,820 5.500,281 5.753.421 5.793.069 ,085.572 D Cash dividends declared per share 2.18 S 1508 182

Answer 1

1-	current ratio =total of current assets/total of current liabilities	106869/79006	1.353	Ideal current ratio is 2 but company current ratio is 1.353 which is below the ideal ratio of two so we can say short term liquidity of the company is average not very good and not very bad as this ratio is above the ratio 1
	profit margin ratio = net income/net sales	45687/215639	21.187%	Company is earning profit at a rate of 21.187% which is a good sign of profitability as no other figure is provided for comparison so this is good rate of profit.
2-	Accounts receivable turnover ratio = sales/average of accounts receivables	215639/16301.5	13.228
	average accounts receivables	(15754+16849)/2	16301.5
	days sales uncollected ratio =365/accounts receivable turnover ratio	365/13.228	27.593	company gets its payment from debtors at a gap of 27 days so it seems favorable as so comparative figure is provided.
3-	total asset turnover ratio = sales/average of total of assets	215639/306015.5	0.705
	average of total of assets	(321686+290345)/2	306015.5
4-	debt ratio = total of liabilities/total of assets	193437/321686	0.601
	company is 60% debt financed which shows a high degree of riskiness
5-	debt to equity ratio = total of liabilities/total of equity	193437/128249	1.508	company debt equity ratio comprise of 1.5:1 . Which shows a high degree of riskiness
6-	market price	264.29	27/11/2019
	dividend yield = dividend per share/market price	2.18/264.29	0.825%
	pe ratio = market price/eps	264.29/8.35	31.651
	It seems over priced as its PE ratio is 31.651 which is more than the range of 20-25
7-	inventory turnover ratio = cost of sales/average inventory	131376/2240.5	58.637
	average inventory	(2132+2349)/2	2240.5
	days sales in inventory = 365/inventory turnover ratio	365/58.637	6.225
	it seems unfavorable because creditors provide credit only for 6 days
	Over conclusion we can drawn that company liquidity position is moderate as its current ratio is less than ideal ratio of 2. profitability position is good as company is earning a return more than 20%. It is highly levered company as its debt ratio is .6 or 60% of the assets are debt financed and deb to equity ratio is 1.5:1 which shows a high dependance on debt financing. efficiency ratio of the company is favorable. so over performance of the company is good.