Question

Key financial figures for Apple’s fiscal year ended September 26, 2015, follow.

Key Figure \( Millions

Liabilities + Equity . . . . . . . . . . . \)290,479

Net income . . . . . . . . . . . . . . . . . 53,394

Revenues . . . . . . . . . . . . . . . . . . 233,715

Required 2. What is Apple’s return on assets for fiscal year 2015? Its assets at September 27, 2014, equal $231,839 (in millions).

Short answer

The return on assets of Apple for 2015 is 20.44%

Step-by-step solution

Computation of Average Assets

$\begin{array}{rcl}\mathbf{\text{Averageassets}}& \mathbf{=}& \frac{\mathbf{\text{Openingassets}}\mathbf{+}\mathbf{\text{Closingassets}}}{\mathbf{2}}\\ & \mathbf{=}& \frac{\mathbf{\$}\mathbf{290}\mathbf{,}\mathbf{479}\mathbf{+}\mathbf{\$}\mathbf{231}\mathbf{,}\mathbf{839}}{\mathbf{2}}\\ & \mathbf{=}& \mathbf{\$}\mathbf{261}\mathbf{,}\mathbf{159}\end{array}$

Computation of Return on Assets

$$\begin{gathered} \mathbf{\text{Returnonassets=}}\frac{\mathbf{\text{NetIncome}}}{\mathbf{\text{Averageassets}}}\mathbf{\times }\mathbf{100} \\ \mathbf{=}\frac{\mathbf{\$}\mathbf{53}\mathbf{,}\mathbf{394}}{\mathbf{\$}\mathbf{261}\mathbf{,}\mathbf{159}}\mathbf{\times }\mathbf{100} \\ \mathbf{=}\mathbf{20}\mathbf{.}\mathbf{44}\mathbf{\%} \end{gathered}$$