AA 13-1 Company Analysis LO A1, P1, P2 Use Apple's financial statements in Appendix A to...

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AA 13-1 Company Analysis LO A1, P1, P2 Use Apple's financial statements in Appendix A to answer the following. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using fiscal 2020 as the base year, compute trend percents for fiscal years 2020, 2021, and 2022 for total net sales, total cost of sales, operating income, provision for income taxes, and net income. Note: Input all the values as positive numbers. Enter your answers in millions. Round your percentage answers to 1 decimal place. Apple Fiscal 2022 Fiscal 2021 Fiscal 2020 Net Sales % % % Cost of sales % % % Operating income % % % Provision for income taxes % % % Net income % % % < Required 1 Required 2 > Show less AA 13-1 Company Analysis LO A1, P1, P2 Use Apple's financial statements in Appendix A to answer the following. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute common-size percents for fiscal years 2021 and 2022 for the following categories of assets: (a) total current assets; (b) property, plant and equipment, net; and (c) accounts receivable, net. Note: Enter your answers in millions. Round your percentage answers to 1 decimal place. Apple Total current assets Property, plant and equipment, net Accounts receivable, net 2022 % % % < Required 1 Required 2 2021 % % % Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) Current assets Cash and cash equivalents Marketable securities Accounts receivable, net Inventories Vendor nontrade receivables Other current assets Total current assets Non-current assets Marketable securities Property, plant and equipment, net Other noncurrent assets Total noncurrent assets Total assets Current liabilities Accounts payable Other current liabilities Deferred revenue Commercial paper Term debt Total current liabilities Non-current liabilities Term debt Other noncurrent liabilities Total noncurrent liabilities Total liabilities Commitments and contingencies Shareholders' equity ASSETS September 24, 2022 September 25, 2021 23,646 34,940 24,658 27,699 28,184 26,278 4,946 6,580 32,748 25,228 21,223 14,111 135,405 134,836 120,805 127,877 42,117 39,440 54,428 48,849 217,350 216,166 $ 352,755 $ 351,002 LIABILITIES AND SHAREHOLDERS' EQUITY Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,943,425 and 16,426,786 shares issued and outstanding, respectively Retained earnings (Accumulated deficit) Accumulated other comprehensive income (loss) Total shareholders' equity Total liabilities and shareholders' equity $ 64,115 $ 54,763 60,845 47,493 7,912 7,612 9,982 6,000 11,128 9,613 153,982 125,481 98,959 109,106 49,142 53,325 148,101 162,431 302,083 287,912 64,849 57,365 (3,068) 5,562 (11,109) 163 50,672 63,090 352,755 351,002 CONSOLIDATED STATEMENTS OF OPERATIONS Years ended Net sales Products (In millions, except number of shares which are reflected in thousands and per share amounts) September 24, 2022 September 25, 2021 September 26, 2020 220,747 Services Total net sales Cost of sales Products 316,199 78,129 394,328 297,392 68,425 365,817 53,768 274,515 Services Total cost of sales Gross margin 201,471 192,266 151,286 22,075 20,715 18,273 223,546 212,981 169,559 170,782 152,836 104,956 Operating expenses Research and development 26,251 21,914 18,752 Selling, general and administrative 25,094 21,973 19,916 Total operating expenses 51,345 43,887 38,668 Operating income 119,437 108,949 66,288 Other income (expense), net (334) 258 803 Income before provision for income taxes 119,103 109,207 67,091 Provision for income taxes 19,300 14,527 9,680 Net income 99,803 94,680 57,411 Earnings per share: Basic Diluted 6.15 5.67 3.31 6.11 5.61 3.28 Shares used in computing earnings per share: Basic Diluted 16,215,963 16,325,819 16,701,272 16,864,919 17,352,119 17,528,214 See accompanying Notes to Consolidated Financial Statements. Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) $ 99,803 $ September 24, 2022 September 25, 2021 September 26, 2020 94,680 $ 57,411 (1,511) 501 88 Years ended Net income Other comprehensive income (loss): Change in foreign currency translation, net of tax Change in unrealized gains/losses on derivative instruments, net of tax: Change in fair value of derivative instruments Adjustment for net (gains) losses realized and included in net income Total change in unrealized gains/losses on derivative instruments Change in unrealized gains/losses on marketable debt securities, net of tax: Change in fair value of marketable debt securities 3,212 32 79 (1,074) 1,003 (1,264) 2,138 1,035 (1,185) (12,104) (694) 1,202 Adjustment for net (gains) losses realized and included in net income Total change in unrealized gains/losses on marketable debt securities 205 (273) (63) (11,899) (967) 1,139 Total other comprehensive income (loss) (11,272) 569 42 Total comprehensive income 88,531 95,249 57,453 Years ended Apple Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In millions, except per share amounts) Total shareholders' equity, beginning balances Common stock and additional paid-in capital: Beginning balances September 24, 2022 September 25, 2021 September 26, 2020 $ 63,090 $ 65,339 $ 90,488 57,365 50,779 Common stock issued 1,175 1,105 45,174 880 Common stock withheld related to net share settlement of equity awards (2,971) (2,627) (2,250) Share-based compensation 9,280 8,108 6,975 Ending balances 64,849 57,365 50,779 Retained earnings (Accumulated deficit): Beginning balances Net income 5,562 14,966 45,898 99,803 94,680 57,411 Dividends and dividend equivalents declared (14,793) (14,431) (14,087) Common stock withheld related to net share settlement of equity awards (3,454) (4,151) (1,604) Common stock repurchased (90,186) (85,502) (72,516) Cumulative effect of change in accounting principle (136) Ending balances (3,068) 5,562 14,966 Accumulated other comprehensive income (loss): Beginning balances Other comprehensive income (loss) Cumulative effect of change in accounting principle 163 (406) (584) (11,272) 569 42 136 Ending balances (11,109) 163 (406) Total shareholders' equity, ending balances $ 50,672 $ 63,090 $ 65,339 Dividends and dividend equivalents declared per share or RSU 0.90 $ 0.85 0.795 See accompanying Notes to Consolidated Financial Statements. Years ended Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS Cash, cash equivalents and restricted cash, beginning balances Operating activities: Net income Adjustments to reconcile net income to cash generated by operating activities: (In millions) September 24, 2022 $ September 25, 2021 September 26, 2020 35,929 $ 39,789 $ 50,224 99,803 94,680 57,411 Depreciation and amortization 11,104 11,284 11,056 Share-based compensation expense 9,038 7,906 6,829 Deferred income tax expense (benefit) 895 (4,774) (215) Other 111 (147) (97) Changes in operating assets and liabilities: Accounts receivable, net (1,823) (10,125) 6,917 Inventories 1,484 (2,642) (127) Vendor nontrade receivables (7,520) (3,903) 1,553 Other current and noncurrent assets (6,499) (8,042) (9,588) Accounts payable Deferred revenue Other current and noncurrent liabilities Cash generated by operating activities Investing activities: Purchases of marketable securities 9,448 12,326 (4,062) 478 1,676 2,081 5,632 5,799 8,916 122,151 104,038 80,674 (76,923) (109,558) (114,938) Proceeds from maturities of marketable securities 29,917 59,023 69,918 Proceeds from sales of marketable securities 37,446 47,460 50,473 Payments for acquisition of property, plant and equipment (10,708) (11,085) (7,309) Payments made in connection with business acquisitions, net (306) (33) (1,524) Other (1,780) (352) (909) Cash used in investing activities (22,354) (14,545) (4,289) Financing activities: Payments for taxes related to net share settlement of equity awards (6,223) (6,556) (3,634) Payments for dividends and dividend equivalents (14,841) (14,467) (14,081) Repurchases of common stock (89,402) (85,971) (72,358) Proceeds from issuance of term debt, net 5,465 20,393 16,091 Repayments of term debt (9,543) (8,750) (12,629) Proceeds from (Repayments of) commercial paper, net 3,955 1,022 (963) Other (160) 976 Cash used in financing activities (110,749) (93,353) 754 (86,820) Decrease in cash, cash equivalents and restricted cash (10,952) (3,860) (10,435) Cash, cash equivalents and restricted cash, ending balances 24,977 35,929 39,789 Supplemental cash flow disclosure: Cash paid for income taxes, net Cash paid for interest 19,573 $ 25,385 9,501 2,865 $ 2,687 $ 3,002 AA 13-1 Company Analysis LO A1, P1, P2 Use Apple's financial statements in Appendix A to answer the following. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using fiscal 2020 as the base year, compute trend percents for fiscal years 2020, 2021, and 2022 for total net sales, total cost of sales, operating income, provision for income taxes, and net income. Note: Input all the values as positive numbers. Enter your answers in millions. Round your percentage answers to 1 decimal place. Apple Fiscal 2022 Fiscal 2021 Fiscal 2020 Net Sales % % % Cost of sales % % % Operating income % % % Provision for income taxes % % % Net income % % % < Required 1 Required 2 > Show less AA 13-1 Company Analysis LO A1, P1, P2 Use Apple's financial statements in Appendix A to answer the following. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute common-size percents for fiscal years 2021 and 2022 for the following categories of assets: (a) total current assets; (b) property, plant and equipment, net; and (c) accounts receivable, net. Note: Enter your answers in millions. Round your percentage answers to 1 decimal place. Apple Total current assets Property, plant and equipment, net Accounts receivable, net 2022 % % % < Required 1 Required 2 2021 % % % Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) Current assets Cash and cash equivalents Marketable securities Accounts receivable, net Inventories Vendor nontrade receivables Other current assets Total current assets Non-current assets Marketable securities Property, plant and equipment, net Other noncurrent assets Total noncurrent assets Total assets Current liabilities Accounts payable Other current liabilities Deferred revenue Commercial paper Term debt Total current liabilities Non-current liabilities Term debt Other noncurrent liabilities Total noncurrent liabilities Total liabilities Commitments and contingencies Shareholders' equity ASSETS September 24, 2022 September 25, 2021 23,646 34,940 24,658 27,699 28,184 26,278 4,946 6,580 32,748 25,228 21,223 14,111 135,405 134,836 120,805 127,877 42,117 39,440 54,428 48,849 217,350 216,166 $ 352,755 $ 351,002 LIABILITIES AND SHAREHOLDERS' EQUITY Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,943,425 and 16,426,786 shares issued and outstanding, respectively Retained earnings (Accumulated deficit) Accumulated other comprehensive income (loss) Total shareholders' equity Total liabilities and shareholders' equity $ 64,115 $ 54,763 60,845 47,493 7,912 7,612 9,982 6,000 11,128 9,613 153,982 125,481 98,959 109,106 49,142 53,325 148,101 162,431 302,083 287,912 64,849 57,365 (3,068) 5,562 (11,109) 163 50,672 63,090 352,755 351,002 CONSOLIDATED STATEMENTS OF OPERATIONS Years ended Net sales Products (In millions, except number of shares which are reflected in thousands and per share amounts) September 24, 2022 September 25, 2021 September 26, 2020 220,747 Services Total net sales Cost of sales Products 316,199 78,129 394,328 297,392 68,425 365,817 53,768 274,515 Services Total cost of sales Gross margin 201,471 192,266 151,286 22,075 20,715 18,273 223,546 212,981 169,559 170,782 152,836 104,956 Operating expenses Research and development 26,251 21,914 18,752 Selling, general and administrative 25,094 21,973 19,916 Total operating expenses 51,345 43,887 38,668 Operating income 119,437 108,949 66,288 Other income (expense), net (334) 258 803 Income before provision for income taxes 119,103 109,207 67,091 Provision for income taxes 19,300 14,527 9,680 Net income 99,803 94,680 57,411 Earnings per share: Basic Diluted 6.15 5.67 3.31 6.11 5.61 3.28 Shares used in computing earnings per share: Basic Diluted 16,215,963 16,325,819 16,701,272 16,864,919 17,352,119 17,528,214 See accompanying Notes to Consolidated Financial Statements. Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) $ 99,803 $ September 24, 2022 September 25, 2021 September 26, 2020 94,680 $ 57,411 (1,511) 501 88 Years ended Net income Other comprehensive income (loss): Change in foreign currency translation, net of tax Change in unrealized gains/losses on derivative instruments, net of tax: Change in fair value of derivative instruments Adjustment for net (gains) losses realized and included in net income Total change in unrealized gains/losses on derivative instruments Change in unrealized gains/losses on marketable debt securities, net of tax: Change in fair value of marketable debt securities 3,212 32 79 (1,074) 1,003 (1,264) 2,138 1,035 (1,185) (12,104) (694) 1,202 Adjustment for net (gains) losses realized and included in net income Total change in unrealized gains/losses on marketable debt securities 205 (273) (63) (11,899) (967) 1,139 Total other comprehensive income (loss) (11,272) 569 42 Total comprehensive income 88,531 95,249 57,453 Years ended Apple Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In millions, except per share amounts) Total shareholders' equity, beginning balances Common stock and additional paid-in capital: Beginning balances September 24, 2022 September 25, 2021 September 26, 2020 $ 63,090 $ 65,339 $ 90,488 57,365 50,779 Common stock issued 1,175 1,105 45,174 880 Common stock withheld related to net share settlement of equity awards (2,971) (2,627) (2,250) Share-based compensation 9,280 8,108 6,975 Ending balances 64,849 57,365 50,779 Retained earnings (Accumulated deficit): Beginning balances Net income 5,562 14,966 45,898 99,803 94,680 57,411 Dividends and dividend equivalents declared (14,793) (14,431) (14,087) Common stock withheld related to net share settlement of equity awards (3,454) (4,151) (1,604) Common stock repurchased (90,186) (85,502) (72,516) Cumulative effect of change in accounting principle (136) Ending balances (3,068) 5,562 14,966 Accumulated other comprehensive income (loss): Beginning balances Other comprehensive income (loss) Cumulative effect of change in accounting principle 163 (406) (584) (11,272) 569 42 136 Ending balances (11,109) 163 (406) Total shareholders' equity, ending balances $ 50,672 $ 63,090 $ 65,339 Dividends and dividend equivalents declared per share or RSU 0.90 $ 0.85 0.795 See accompanying Notes to Consolidated Financial Statements. Years ended Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS Cash, cash equivalents and restricted cash, beginning balances Operating activities: Net income Adjustments to reconcile net income to cash generated by operating activities: (In millions) September 24, 2022 $ September 25, 2021 September 26, 2020 35,929 $ 39,789 $ 50,224 99,803 94,680 57,411 Depreciation and amortization 11,104 11,284 11,056 Share-based compensation expense 9,038 7,906 6,829 Deferred income tax expense (benefit) 895 (4,774) (215) Other 111 (147) (97) Changes in operating assets and liabilities: Accounts receivable, net (1,823) (10,125) 6,917 Inventories 1,484 (2,642) (127) Vendor nontrade receivables (7,520) (3,903) 1,553 Other current and noncurrent assets (6,499) (8,042) (9,588) Accounts payable Deferred revenue Other current and noncurrent liabilities Cash generated by operating activities Investing activities: Purchases of marketable securities 9,448 12,326 (4,062) 478 1,676 2,081 5,632 5,799 8,916 122,151 104,038 80,674 (76,923) (109,558) (114,938) Proceeds from maturities of marketable securities 29,917 59,023 69,918 Proceeds from sales of marketable securities 37,446 47,460 50,473 Payments for acquisition of property, plant and equipment (10,708) (11,085) (7,309) Payments made in connection with business acquisitions, net (306) (33) (1,524) Other (1,780) (352) (909) Cash used in investing activities (22,354) (14,545) (4,289) Financing activities: Payments for taxes related to net share settlement of equity awards (6,223) (6,556) (3,634) Payments for dividends and dividend equivalents (14,841) (14,467) (14,081) Repurchases of common stock (89,402) (85,971) (72,358) Proceeds from issuance of term debt, net 5,465 20,393 16,091 Repayments of term debt (9,543) (8,750) (12,629) Proceeds from (Repayments of) commercial paper, net 3,955 1,022 (963) Other (160) 976 Cash used in financing activities (110,749) (93,353) 754 (86,820) Decrease in cash, cash equivalents and restricted cash (10,952) (3,860) (10,435) Cash, cash equivalents and restricted cash, ending balances 24,977 35,929 39,789 Supplemental cash flow disclosure: Cash paid for income taxes, net Cash paid for interest 19,573 $ 25,385 9,501 2,865 $ 2,687 $ 3,002