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Refer to Apple's financial statements in Appendix A to answer the following. Required 1. Assume that the amounts reported for inventories and cost of sales reflect items purchased in a form ready for resale. Compute the net cost of goods purchased for the year ended September 28, 2019, 2. Compute the current ratio and acid-test ratio as of September 28, 2019, and September 29, 2018. 3. Does Apple's 2019 current ratio outperform or underperform the (assumed) industry average of 1.57 4. Does Apple's 2019 acid-test ratio outperform or underperform the (assumed) industry average of 1.0? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the current ratio and acid-test ratio as of September 28, 2019, and September 29, 2018. (Enter your answers in millions of dollars.) 2019 2018 $ millions Current Ratio Acid-Test Ratio Current Ratio Acid-Test Ratio Current assets Cash and equivalents Marketable securities (current) Accounts receivables, net Inventories, net Vendor non-trade receivables Other current assets Total current assets quick assets Total Total current liabilities Ratio $ m 0 $ 0 < Required 1 0 0 $ 0 0 Required 3 > $ 0
Current assets Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 28, 2019 ASSETS S 48,844 51,713 22,926 4,106 22,878 12,352 162.819 105,341 37,378 32,978 175,697 338,516 Cash and cash equivalents Marketable securities Accounts receivable, net Inventories Vendor non-trade receivables Other current assets Total current assets Non-current assets Marketable securities Property, plant and equipment, net Other non-current assets Total non-current assets Total assets September 29, 2018 25,913 40,388 23,186 3,956 25,809 12,087 131,339 170,799 41304 22,283 234,386 365,725 APP
Current liabilities Accounts payable LIABILITIES AND SHAREHOLDERS' EQUITY Other current liabilities i Deferred revenue Commercial paper Term debt Total current liabilities Non-current liabilities Term debt Other non-current liabilities Total non-current liabilities Total liabilities Commitments and contingencies Shareholders' equity Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 4,443,236 and 4,754,986 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income (loss) Total shareholders' equity Total liabilities and shareholders' equity See accompanying Notes to Consolidated Financial Statements. 46,236 37,720 5,522 5,980 10,260 105,718 91,807 50.503 142,310 248,028 45,174 45,898 (584) 90,488 338,516 S 55,888 33,327 5.966 11,964 8,784 115,929 93,735 48,914 142,649 258,578 40,201 70,400 (3,454) 107,147 365,725
Years ended Net sales: Products Services Cost of sales: Products Services Operating expenses: CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) September 28, 2019 September 29, 2018 213,883 $ 225,847 39,748 46,291 260,174 265,595 144,996 148,164 16,786 15,592 161,782 163,756 98,392 101,839 16,217 14,236 18,245 16,705 34,462 30,941 63,930 70,898 1,807 2,005 65.737 72,903 10,481 13,372 55,256 59,531 11.97 12.01 11.89. 11.91 4,955,377 5,000,109 Total net sales Total cost of sales Gross margin Research and development Selling, general and administrative Total operating expenses Operating income Other income (expense), net Income before provision for income taxes Provision for income taxes Net income Earnings per share: Basic Diluted Shares used in computing earnings per share: Basic Diluted I $ S $ $ 4,617,834 4,648,913 See accompanying Notes to Consolidated Financial Statements. September 30, 2017 S 196,534 32,700 229,234 126,337 14,711 141,048 88,186 11,581 15,261 26,842 61,344 2,745 64,089 15,738 48,351 9.27 9.21 5,217,242 5,251,692 $ S $
Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) Change in foreign currency translation, net of tax Change in unrealized gains/losses on derivative instruments, net of tax: Change in fair value of derivatives Adjustment for net (gains) losses realized and included in net income Total change in unrealized gains/losses on derivative instruments Change in unrealized gains/losses on marketable securities, net of tax: Change in fair value of marketable securities 3,802 25 3,827 Adjustment for net (gains) losses realized and included in net income Total change in unrealized gains/losses on marketable securities Total other comprehensive income (loss) Total comprehensive income 2,781 $ 58,037 S See accompanying Notes to Consolidated Financial Statements. Years ended Net income Other comprehensive income (loss): September 28, 2019 September 29, 2018 September 30, 2017 55,256 S 59,531 S 48,351 (408) (525) 224 (661) 523 1,315 23 382 (1,477) (638) 905 (162) (3,407) (782) (64) (3,406) (846) (3,026) (784) 56,505 $ 47,567