MANAGERIAL ACCOUNTING FUND. W/CONNECT
5th Edition
ISBN: 9781259688713
Author: Wild
Publisher: MCG
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Question
Chapter 9, Problem 1BTN
To determine
Revenue amounts in year 2011, 2012 and 2013.
To determine
If Apple wishes to evaluate its product lines then how it should allocate its operating expenses between its product lines to determine profitability.
To determine
How Apple’s product mix has changed from 2013.
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Analyze Apple Inc. by segment
Segment disclosure by Apple Inc. (AAPL) provides sales information for its major product lines for three recent years as follows (in millions):
Segment
Year 3
Year 2
Year 1
iPhone
$136,700
$155,041
$101,991
iPad
20,628
23,227
30,283
Mac
22,831
25,471
24,079
Services
24,348
19,909
18,063
Other Products
11,132
10,067
8,379
Total sales
$215,639
$233,715
$182,795
The Services segment includes sales from iTunes Store, App Store, Mac App Store, TV App Store, iBooks Store, Apple Music, AppleCare, and Apple Pay. The Other Products segment includes sales from Apple TV, Apple Watch, Beats products, iPod, and Apple-branded accessories.
a. Prepare a vertical analysis of Year 3 sales. (Round percentages to nearest whole percent.)
Analyze Apple Inc. by segment
Segment disclosure by Apple Inc. (AAPL) provides sales information for its major product lines for three recent years as follows (in millions):
Segment
Year 3
Year 2
Year 1
iPhone
$137,781
$142,381
$164,888
Mac
28,622
25,740
25,198
iPad
23,724
21,280
18,380
Wearables, Home Accessories
30,620
24,482
17,381
Services
53,768
46,291
39,748
Total
$274,515
$260,174
$265,595
The Wearables, Home Accessories segment includes Airpods, Apple Watch, and Apple TV. The Services segment includes sales from iTunes Store, App Store, Mac App Store, TV App Store, iBooks Store, Apple Music, AppleCare, and Apple Pay.
Question Content Area
a. Prepare a vertical analysis of Year 3 sales. (Round percentages to nearest whole percent.)
Segment
Year 3Sales
Percent ofTotal Sales
iPhone
$137,781
fill in the blank
Mac
28,622
fill in the blank
iPad
23,724
fill in the blank
Wearables, Home Accessories
30,620
fill in the blank
Services
53,768
fill…
Access the February 21, 2017, filing of the December 31, 2016, 10-K report of The Hershey Company (ticker: HSY) at SEC.gov and complete the following requirements. Required Compute or identify the following profitability ratios of Hershey for its years ending December 31, 2016, and December 31, 2015. Interpret its profitability using the results obtained for these two years. 1. Profit margin ratio (round the percent to one decimal). 2. Gross profit ratio (round the percent to one decimal). 3. Return on total assets (round the percent to one decimal). (Total assets at year-end 2014 were $5,622,870 in thousands.) 4. Return on common stockholders’ equity (round the percent to one decimal). (Total shareholders’ equity at year-end 2014 was $1,519,530 in thousands.) 5. Basic net income per common share (round to the nearest cent).
Chapter 9 Solutions
MANAGERIAL ACCOUNTING FUND. W/CONNECT
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