Using the Annual Report of Apple answer the following questi

Using the Annual Report of Apple answer the following questions in the Discussion: HERE IS THE LINK TO THE REPORT... http://investor.apple.com/secfiling.cfm?filingid=1628280-16-20309&cik=320193

What is the breakdown of the company\'s current liabilities at year end?

Calculate the company\'s times-interest-earned ratio for the year end. What does this tell you about the company?

Solution

BREAK DOWN OF COMPANY\'S CURRENT LIABILITIES

(IN MILLIONS)

Current liabilities:

2016

% OF TOTAL CURRENT ASSETS

Accounts payable

37,194

47.08%

Accrued expenses

22,027

27.88%

Deferred revenue

8,080

10.23%

Commercial paper

8,105

10.26%

Current portion of long-term debt

3,500

4.43%

Total current liabilities

79,006

100.00%

times interest earned ratio

EBIT/INTEREST

60024/1456 = 41.23

EBIT (MILLIONS)

60024

INTEREST (MILLIONS)

1456