Please answer the questions in your own work thanks io of stockholders\' equity
ID: 2794253 • Letter: P
Question
Please answer the questions in your own work thanks io of stockholders' equity to total assets; price-earnings ratio is a technol A8 ka technology company that designs, produces, and sells a variety of digial devices, Aople ing the iPod, iPhone, and iPad. The following data (in millions) were adapted from a ecent financial statement of Apple. Obj 9 Year 1 $116371 39,756 76,615 28.05 Year 2 Total assets Total liabilities Total stockholders' equity Earnings per share $176,064 57,854 18,210 44.64 . Compute the ratio of liabilities to total assets for Years 1 and 2. Round to one decimal placeExplanation / Answer
1)
Liabilities to assets
year 2 = 57854 / 176064 = 0.328596 = 0.3
year 1 = 39756 / 116371 = 0.341632 = 0.3
2)
Equity to assets
year 2 = 1 - 0.328596 = 0.671404 = 0.7
year 1 = 1 - 0.341632 = 0.658368 = 0.7
3)
Liabilities to equity
year 2 = 57854 / 118210 = 0.489417 = 0.5
year 1 = 39756 / 76615 = 0.518906 = 0.5
4)
Equity
As per 2nd answer equity has more more% of assets
5)
Feel more safe in year 2
As per 3rd answer liabilities / equity is lower for year 2
6&7)
price-earnings
year 2 = 444.38 / 44.64 = 9.95
year 1 = 459.68 / 28.05 = 16.39
8)
In year 1 company has higher price-earnings ratio of 16.4, but in year 2 it is 9.9.
Market price reduced