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 3. How much are total expenses for Apple for the year ended September 26, 2015?

Short answer

The expense incurred by the Apple is $180,321

Step-by-step solution

Definition of Expense

The expenses are defined as the cost incurred by the businesses during the period for running the business and generating revenue.

Computation of Expenses

$\begin{array}{rcl}\mathbf{\text{Expenses}}& \mathbf{=}& \mathbf{\text{Revenue}}\mathbf{-}\mathbf{\text{NetIncome}}\\ & \mathbf{=}& \mathbf{\$}\mathbf{233}\mathbf{,}\mathbf{715}\mathbf{-}\mathbf{\$}\mathbf{53}\mathbf{,}\mathbf{394}\\ & \mathbf{=}& \mathbf{\$}\mathbf{180}\mathbf{,}\mathbf{321}\end{array}$