Question

For all of the following questions, refer to the following table, which gives financial information for Apple for fiscal year 2002 (in millions): Sales $5,742 Cash (includes marketable securities) $4,337 Cost of Sales 4,139 Accounts Receivable 565 Gross Profit 1,604 Current Assets 5,388 Net Income 65 Total Assets 6,298 Operating Cash Flow 89 Current Liabilities 1,658 Total Liabilities 2,203 Sales (fiscal year 2001) 5,363 Total Equity 4,095 Net Income (fiscal year 2001) -25 Total Assets (fiscal year 2001) 6,021 Accounts Receivalbe (fiscal year 2001) 466 In Apple's 2002 common-size income statement, gross profit is equal to: a. 27.9% b. 100.0% c. 24.7x d. 4.1%

Answer 1

Answer:

a. 27.9%

Explanation:

The formula and the computation of the gross profit are shown below:

Gross profit = (Gross profit) ÷ (Sales) × 100

where,

Gross profit = $1,604

And, the sales revenue is $5,742

So, the gross profit is

= ($1,604) ÷ ($5,742) × 100

= 27.9%

By dividing the gross profit by the sales we can get the gross profit