Need to find b. Calculate Apple’s ROE for the years ended September 27, 2014, an

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Need to find

b. Calculate Apple’s ROE for the years ended September 27, 2014, and September 28, 2013. (Round your answers to 1 decimal place.)

(Amounts Expressed in Millions) For the Fiscal Years Ended September 27 and September 28, respectively: 2014 2013 Net sales $ 108,360 $ 65,330 Costs of sales 64,540 39,650 Operating income 33,910 18,490 Net income $ 26,010 $ 14,120 At Year End: Assets Current assets: Cash and cash equivalents $ 9,580 $ 10,830 Short-term marketable securities 16,240 14,470 Accounts receivable, less allowances of $84 and $99, respectively 5,480 5,630 Inventories 890 1,160 Deferred tax assets 2,130 1,740 Vendor nontrade receivables 6,460 4,520 Other current assets 4,640 3,550 Total current assets 45,420 41,900 Long-term marketable securities 85,730 25,500 Property, plant, and equipment, net 7,890 22,430 Goodwill 1,020 850 Acquired intangible assets, net 3,650 450 Other assets 3,670 2,370 Total assets $ 147,380 $ 93,500 Liabilities and Shareholders’ Equity Current liabilities: Accounts payable $ 14,740 $ 12,120 Accrued expenses 9,360 5,830 Deferred revenue 4,210 3,090 Commercial paper 6,488 0 Total current liabilities 34,798 21,040 Deferred revenue—noncurrent 1,800 1,250 Long-term debt 23,512 17,560 Other noncurrent liabilities 10,220 5,640 Total liabilities 70,330 45,490 Shareholders’ Equity: Common stock and additional paid-in capital, $0.00001 par value, 1,900,000 shares authorized; 929,390 and 916,090 shares issued and outstanding, respectively 13,450 10,770 Retained earnings 63,040 37,280 Accumulated other comprehensive income (loss) 560 (-40 ) Total shareholders’ equity 77,050 48,010 Total liabilities and shareholders’ equity $ 147,380 $ 93,500

Explanation / Answer

ROE = Net income / shareholders equity

in 2014 ; $26,010 /147'380

= 17.7%

in 2013 ; $14,120/93,500

= 15.1%

  

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