The following summarized data (amounts in millions) are taken from the September

Question

The following summarized data (amounts in millions) are taken from the September 27, 2014, and September 28, 2013, comparative financial statements of Apple Inc., a manufacturer of mobile communication and media devices, personal computers, portable digital music players, and seller of a variety of related sottware, services, accessories, networking solutions, and third-party digital content and applications (Amounts Expressed in Millions) For the Fiscal Years Ended September 27 and September 28, respectively Not salas Costs of sales Operating income Net income At Year End: Assets Current assets 2014 2013 S 182,795 $170,910 106,606 48,999 $ 39.510 37,037 112.258 52,503 S 13,844 $14,259 26,287 13,102 1,764 3,453 7,539 6,882 Cash and cash equivalents Short-term marketable securities Accounls receivable, less allowarce of $84 and $99, respeclively 11.233 17,460 Delerred lax asses Vendor nontrade receivables Other curent assets 9759 800 Total current assots 130,162 20,624 106,215 16,597 1,577 4,179 Propcrty. plant, and cquipment, net Acquired intangible asscts, nct Other assots 4.142 3,784 Tolal assels 5 251539 5 201000 Liabilities and Shareholders' Equity Current liablitios Accourils payable Accrued cxpensos Delerred revenue Commercial papar S 30,196 22,367 13,856 7,435 18453 Total current liabilities 63,448 3,031 28,987 43,658 2,625 16,980 20,208 Long-term debt Other noncurrent liabilities Total liabilitios Sharcholders' Equity: Common stock and aclditional paid-in capital, $0.00001 par value, 12,600,000 shares authorized 23.313 87,152 1,082 11.547 19,764 104,256 (471) 123,549 929,277 and 915,970 shares issued and outstanding, respectively Relained earnings Accumulated other comprohensive incomo (loss) Total shareholders equity Total liabilities and shareholders' equity S 231,839 207,000 At September 29, 2012, total assets were $176,064 and total shareholders' equity was $118,210.

Explanation / Answer

Solution c:

ROI = Net Operating income / Average total assets

Average total assets = (Beginning Assets + Ending Assets)/2

Average total assets - 2014 = ($231,839 + $207,000)/2 = $219,419.50

Average total assets -2013 = ($207,000 + $176,064) / 2 = $191,532

ROI 2014 = $52,503 / $219,419.50 = 23.9%

ROI 2013 = $48,999 / $191,532 = 25.6%

Margin = Net Operating Income / Sales

Margin 2014 = $52,503 / $182,795 = 28.7%

Margin 2013 = $48,999 / $170,910 = 28.7%

Asset Turnover = Net Sales / Average Total Assets

Turnover 2014 = $182,795 / 219,419.50 = 0.83 times

Turnover 2013 = $170,910 / $191,532 = 0.89 times

ROI using margin and turnover = Margin * Turnover

2014 = 28.7%*0.83 = 23.9%

2013 = 28.7% * 0.89 = 25.6%

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