Compute return on assets

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Reference no: EM13845738

Question:

The income statement, balance sheet, cash flow statement and statement of shareholders' equity for Apple Inc are contained in the following worksheets. Please use the Apple's financial statements to respond to the following questions. Since you do not have 2008 data, you do can use End of Year Assets instead of Average Total Assets as the denominator for the appropriate ratios. Show your work.

Part

A. Compute the Dupont framework ratios for the years ended 09/26/09 and 09/25/10. Use averages where appropriate.

  • ROE
  • Profit Margin
  • Asset Turnover
  • Financial Leverage

Comment on Apple's's performance for the year ended 09/25/10. Has it improved? Why or why not?

B. Compute Return on Assets (ROA) for 09/25/10.

Is ROE different than ROA? If so, why?

C. Why does the amount of net earning differ from the amount of cash flow from operations?

D. Did Apple's pay any dividends in year ending 09/25/10? If so, how much?

E. Apple's reports goodwill for 2009. What is goodwill?

F. Depreciation is added back on the statement of cash flows. Why?

G. The change in accounts receivable is subtracted on the statement of cash flows. Why?

H. What is retained earnings?

I. Prepare common-size income statements and balance sheet.

a. What is the largest asset (in percentage terms ) held by Apple?
b. What is the primary source of financing for Apple?
c. Did income increase or decrease in percentage terms? Why?

J. Based on the cash flow statement:
a. What is the biggest source of cash for 2010?
b. What is the biggest use of cash for 2010?

Attachment:- Problem Set.xlsx

Reference no: EM13845738

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