Presented below is Apple’s 3 Year Financial Results taken from their 2013

| February 25, 2017

Question
Presented below is Apple’s 3 Year Financial Results taken from their 2013 10K (annual report) which can be found on their website under SEC filings and annual reports:

http://investor.apple.com/sec.cfm#filings

All the figures below are presented in millions except for the per share data. So yes, Apple generated $170 billion dollars in net sales in 2013.

2013 2012 2011
Net sales $ 170,910 $ 156,508 $ 108,249
Net income $ 37,037 $ 41,733 $ 25,922
Earnings per share:
Basic $ 40.03 $ 44.64 $ 28.05
Diluted $ 39.75 $ 44.15 $ 27.68
Cash dividends declared per share $ 11.40 $ 2.65 $0
Shares used in computing earnings
per share:
Basic 925,331 934,818 924,258
Diluted 931,662 945,355 936,645
Total cash, cash equivalents and
marketable securities $ 146,761 $ 121,251 $ 81,570
Total assets $ 207,000 $ 176,064 $ 116,371
Long-term debt $ 16,960 $0 $0
Long-term obligations (a) $ 20,208 $ 16,664 $ 10,100
Total liabilities $ 83,451 $ 57,854 $ 39,756
Total shareholders’ equity $ 123,549 $ 118,210 $ 76,615

1. Compute the Debt Ratio and the Equity Ratio for all of the years. Explain the ratios.

2. Why would a company so cash rich like Apple ($146 billion dollars reported in cash and cash equivalents and marketable securities) take on more long-term debt in 2013?

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