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Use theinformation contained in these financial statements and notes to complete this case All answers should be for the most current year September 30 2017 unless asked otherwise Many companies

Use theinformation contained in these financial statements and notes to complete this case.All answers should be for the most current year (September 30,2017) 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.






  1. Financial Statement Analysis Ratios – Must show your work for all ratios. Calculate each ratio to three decimal places. (Page numbers are for referencing the formulas in your textbook.) (100 Points Total)
1. Chapters3& 13(pages128, 127, 597) (24Points)
 
  1. Calculate the Currentratio. (4)Does this ratio appear favorable or unfavorable? (4) Why?(4)
  b. Calculate the Profit Margin ratio.(4)Does this ratio appear favorable or unfavorable? (4) Why? (4)
2. Chapters 6, 7& 13(pages327,285, 597) (18 Points)
  a. Calculate the Accounts Receivable Turnover ratio. (8)
 
  1. Calculate the Days’ Sales Uncollected ratio. (6) Does this ratio appear favorable or unfavorable? Why? (4)
3. Chapters8& 13 (pages367, 597) (6Points)
  a. Calculate the Total AssetTurnover ratio. (6)
   
4. Chapters2& 13(pages77, 597) (8 Points)
  a. Calculate the Debt ratio.(4) What does this ratio tell you about Apple’s risk?(4)
5. Chapters 10& 13 (pages 451, 452, 593, 597) (8 Points)
 
  1. Calculate the Debt-to-Equity Ratio.(4)

  1. What does this ratio tell you about Apples’ capital structure and risk? (4)
6. Chapters 11& 13(pages501, 595, 596, 597) (20 Points)
   
 
  1. What is the current market price of the stock? This is not in the financial statements provided. It is noted on Apple’s website or go to www.yahoofinance.com to get the quote. The ticker symbol for Apple is AAPL.

Price __________ (4)
Date found:
­____________
 
  1. Calculate the Dividend Yield. (4)
 
  1. Calculate the Price-Earnings Ratio. (4)

What range do analyst give for a stock to be considered overpriced? (2)
What range do analyst give for a stock to be considered underpriced? (2)
What does this tell you about Apple’s stock price? Why?(4)
7. Chapters5& 13(page 227, 597) (16 Points)
 
  1. Calculate the Inventory turnover ratio. (6)
 
  1. Calculate the Days’ Sales in Inventory ratio. (6)

  1. Is this favorable or unfavorable? Why? (4)

May 24 2020 View more View Less

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