What are the drivers to the cost of revenue and the trends? b. Are there any trends in sales and marketing expenses or research and development? Are these amounts reasonable for the type of business? c. Compare general and administrative expenses . Are they reasonable?

Quickbooks Online Accounting
3rd Edition
ISBN:9780357391693
Author:Owen
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Chapter5: Operating Activities: Purchases And Cash Payments
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Problem 3.9C
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a.What are the drivers to the cost of revenue and the trends?

b. Are there any trends in sales and marketing expenses or research and development? Are these amounts reasonable for the type of business?

c. Compare general and administrative expenses . Are they reasonable?

d. What is the ratio of net interest income (expense) to income from operations? Is this a safe ratio for the company? Why or why not?

 

APPLE INC
Income statement horizontal analysis
2 quarters
1st quarter
2nd quarter
dessuobs
25,2021
December 26.2020
26,2021
27,2020
Net
sales
praducts
104429
95678
63948
46529
services
19516
15761
17486
13156
tatal net sales
123945
111439
81434
59685
Cast of sales
Products
64309
62130
40899
32693
Services
5393
4981
5280
4312
Total cost of sales
69702
67111
46179
37005
Grass margin
54243
44328
35255
22680
Operating expenses
Research and development
6306
5163
5717
4758
Selling, general and administrative
Total operating expenses
6449
5631
5412
4831
12755
10794
11129
9589
Operating income
ather income(expense), net
41488
33534
24126
13091
-247
45
243
46
income before provision for income taxes
pravision for income taxes
41241
33579
24369
13137
6611
4824
2625
1884
net income
34630
28755
21744
11253
earnings per share
Basic
2.11
1.7
1.31
0.65
Diluted
2.1
1.68
1.3
0.65
Transcribed Image Text:APPLE INC Income statement horizontal analysis 2 quarters 1st quarter 2nd quarter dessuobs 25,2021 December 26.2020 26,2021 27,2020 Net sales praducts 104429 95678 63948 46529 services 19516 15761 17486 13156 tatal net sales 123945 111439 81434 59685 Cast of sales Products 64309 62130 40899 32693 Services 5393 4981 5280 4312 Total cost of sales 69702 67111 46179 37005 Grass margin 54243 44328 35255 22680 Operating expenses Research and development 6306 5163 5717 4758 Selling, general and administrative Total operating expenses 6449 5631 5412 4831 12755 10794 11129 9589 Operating income ather income(expense), net 41488 33534 24126 13091 -247 45 243 46 income before provision for income taxes pravision for income taxes 41241 33579 24369 13137 6611 4824 2625 1884 net income 34630 28755 21744 11253 earnings per share Basic 2.11 1.7 1.31 0.65 Diluted 2.1 1.68 1.3 0.65
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