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Operationally, the worst year was FYE (9-25-10 / 9-26-09 / 9-27-08 / 9-29-07). Why?

List as many items as you can to support your response.

ACTIVITY 29 ANALYSIS: TREND Prepare a trend analysis and understand the information provided Purpose: The TREND ANALYSIS Compares amounts of a more recent year to a base year. The base year is the earliest year being studied. The analysis measures the percentage of change from the base year. For Apple Computer, use amounts listed below to complete the trend indexes for Income before income tax and the lines below. Divide each amount by the amount for the base year. Record the resulting trend index in the shaded area. Use FYE 9/29/2007 as the base year. a1 Apple Computer (AAPL) ($ in millions) Fiscal year ended (FYE) 9/25/2010 9/26/2009 9/27/2008 9/29/2007 Trend Trend Amount Trend BASE Amount Trend Amount Index Index Index YEAR Index Sales revenue 65,225 272 S 42,905 179 37,491 156 24,006 100 Cost of goods sold Gross profit Operating expenses Operating Income Nonoperating revenues (expenses) Income before income tax 39,541 249 25,683 162 24,294 153 15,852 100 25,684 315 17,222 211 13,197 162 8,154 100 7,299 195 5,482 146 4,870 130 3,745 100 18,385 417 11,740 266 8,327 189 4,409 100 155 26 326 54 620 104 599 100 18,540 12,066 8,947 5,008 Provision for income tax 4,527 3,831 2,828 1,512 Income from continuing operations Nonrecurring items 14,013 8,235 6,119 3,496 0 NA 0 NA 0 NA NA Net income $ 14,013 8,235 6,119 3,496 Amounts with opposite signs cannot be accurately compared Income Statement Page 88 Chapter 3

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