Refer to Apple's financial statements in Appendix A to answer the following.
Required
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 27, 2014.
Compute the current ratio and acid-test ratio as of September 27, 2014, and September 28, 2013. Interpret and comment on the ratio results. How does Apple compare to the industry average of 1.5 for the current ratio and 1.25 for the acid-test ratio?
Access Apple's financial statements (10-K report) for fiscal years ending after September 27, 2014, from its website (Apple.com) or the SEC's EDGAR database (www.SEC.gov). Recompute and interpret the current ratio and acid-test ratio for these current fiscal years.
