Question

Last year Apple reported total sales of $735 billion. It also reported total assets of $808 billion. It expects sales to increase by 5% next year. If the percentage of total assets to sales is expected to remain the same, calculate the expected amount of total assets (in $ billions, rounded to one decimal place, e.g., $234.5 ) for the end of next year. In calculating the ratio of total assets to sales, do not round beyond one decimal place, e.g., 78.9% or 0.789 .

Answer 1

To calculate the expected amount of total assets for the end of next year, multiply the sales for next year by the ratio of total assets to sales from the previous year.

Step-by-step explanation:

To calculate the expected amount of total assets for the end of next year, we need to find the sales for next year and then use the percentage of total assets to sales from the previous year. Given that Apple expects a 5% increase in sales, we can calculate the sales for next year as follows:

Next year's sales = $735 billion + ($735 billion * 0.05) = $771.75 billion (rounded to two decimal places).

Using the ratio of total assets to sales from the previous year, we can calculate the expected amount of total assets for the end of next year:

Expected total assets = $771.75 billion * ($808 billion / $735 billion) = $845.00 billion (rounded to two decimal places).