Obtain Apple Inc.'s 2016 annual report either through the ''Investor Relations'' portion of their website (do a web search for Apple investor relations) or go to www.sec.gov and click ''Company Filings Search'' under ''Filings.''
Required:
Answer the following questions:
1. On what date did Apple's fiscal year end? Was this date different from the previous year? If so, why?
2. How many years of balance sheet and income statement information does Apple present?
3. With regard to the balance sheet:
a. What amounts did Apple report as total assets, liabilities, and stockholders' equity for
2016?
b. Did the amounts reported as assets, liabilities, and stockholders' equity change over the last year? If so, by how much?
c. What amounts were reported as current assets and current liabilities for the years presented?
d. Provide an assessment of Apple's liquidity based on the information obtained in part b.
4. With regard to the income statement:
a. What amounts did Apple report as revenues, expenses, and net income for 2016?
b. Do you detect any trends with regard to revenues, expenses, or net income?
5. With regard to the statement of cash flows:
a. What amounts did the company report for cash flow from operating activities, cash flow from investing activities, and cash flow from financing activities for 2016?
b. How much cash did the company spend on purchasing PP&E in 2016?
6. With regard to management's discussion and analysis:
a. What accounting policies and estimates does Apple consider critical? Where would these policies and estimates be described?
b. What is management's opinion as to prospects for 2017?
7. Are the financial statements audited? If so, by whom?