Question 3 (Mandatory) (3 points) What is cost of product sales, as a pereent of, product sales for the 2020 and prior 2019 year? is this percent getting better or worse? Another way to look at this ratio is that it is related to gross margin. For example, if the gross margin is 30%, then the ratio of costs to sales is 70% and these two amounts (30%+70%)=100%. 1) The percent for the current year is 315 and for the prior year it is 322 The ratio indicates worsening earning power. 2) The percent of product costs to product sales for the current year is 68.5 and for the prior year it is 67.8 . The ratio indicates improving earning power. 3) The percent of product costs to product sales for the current year is 68.5 and for the prior year it is 67.8 . The ratio indicates worsening earning power. 4) The percent of product costs to product sales for the current year is 65.6 and for the prior year it is 67.8 . The ratio indicates improving earning power. Question 4 (Mandatory) (3 points) Apple primarily earns its profits from the sale of services. 1) True 2) False Question 5 (Mandatory) (3 points) The Pandemic had the following effect on the income statement of Apple for the year ended September 26, 2020. 1) It decreased its sales and its net income, likely because customers delayed purchasing new phones and computers due to unemployment and reduced earnings. 2) It increased sales and net income dramatically. Customers stuck at home choose to spend more of their budget on Apple products. 3) Sales and Net Income increased by amounts of around 5.5% and 3% respectively. 4) Sales increased, but net income declined due to the extra costs related to the Pandemic. Question 6 (Mandatory) (3 points) Apple reduced operating expenses in fiscal year ending September 26, 2020 in order to conserve cash during the Pandemic. 1) True 2) False With respect to the reporting period shown on the Apple income statement, the following is true - 1) Apple reports on an fiscal year basis that ends on September 30 of each year with the most recent year shown in the farthest right column. 2) Apple reports on a fiscal year basis that ends near the end of September and they show the most recent year in the left most column. 3) Apple reports on an annual basis with a year ending December 31 and they show the most recent year in the left most column. 4) Apple reports on a fiscal year basis that ends based on the September harvest moon date and shows its most recent year in the farthest right column. Question 2 (Mandatory) (4 points) Apple shows us its sales amounts by products and services. For the 2020 fiscal year, what is the percent of product sales to total sales? 1) 80.4 2) 85.0 3) 95.2 4) 30.8 Apple, Inc. Consolidated Statement of Operations Note: Effective tax rate equals the percent of income before tax, that Apple paid to state, local and federal income taxes. Question 3 (Mandatory) (3 points) What is cost of product sales, as a pereent of, product sales for the 2020 and prior 2019 year? is this percent getting better or worse? Another way to look at this ratio is that it is related to gross margin. For example, if the gross margin is 30%, then the ratio of costs to sales is 70% and these two amounts (30%+70%)=100%. 1) The percent for the current year is 315 and for the prior year it is 322 The ratio indicates worsening earning power. 2) The percent of product costs to product sales for the current year is 68.5 and for the prior year it is 67.8 . The ratio indicates improving earning power. 3) The percent of product costs to product sales for the current year is 68.5 and for the prior year it is 67.8 . The ratio indicates worsening earning power. 4) The percent of product costs to product sales for the current year is 65.6 and for the prior year it is 67.8 . The ratio indicates improving earning power. Question 4 (Mandatory) (3 points) Apple primarily earns its profits from the sale of services. 1) True 2) False Question 5 (Mandatory) (3 points) The Pandemic had the following effect on the income statement of Apple for the year ended September 26, 2020. 1) It decreased its sales and its net income, likely because customers delayed purchasing new phones and computers due to unemployment and reduced earnings. 2) It increased sales and net income dramatically. Customers stuck at home choose to spend more of their budget on Apple products. 3) Sales and Net Income increased by amounts of around 5.5% and 3% respectively. 4) Sales increased, but net income declined due to the extra costs related to the Pandemic. Question 6 (Mandatory) (3 points) Apple reduced operating expenses in fiscal year ending September 26, 2020 in order to conserve cash during the Pandemic. 1) True 2) False With respect to the reporting period shown on the Apple income statement, the following is true - 1) Apple reports on an fiscal year basis that ends on September 30 of each year with the most recent year shown in the farthest right column. 2) Apple reports on a fiscal year basis that ends near the end of September and they show the most recent year in the left most column. 3) Apple reports on an annual basis with a year ending December 31 and they show the most recent year in the left most column. 4) Apple reports on a fiscal year basis that ends based on the September harvest moon date and shows its most recent year in the farthest right column. Question 2 (Mandatory) (4 points) Apple shows us its sales amounts by products and services. For the 2020 fiscal year, what is the percent of product sales to total sales? 1) 80.4 2) 85.0 3) 95.2 4) 30.8 Apple, Inc. Consolidated Statement of Operations Note: Effective tax rate equals the percent of income before tax, that Apple paid to state, local and federal income taxes