Refer to Apple’s financial statements in Appendix A to answer the following.

1. Is Apple’s statement of cash flows prepared under the direct method or the indirect method? How do you know?

2. For each fiscal year 2013, 2012, and 2011, is the amount of cash provided by operating activities more or less than the cash paid for dividends?

3. What is the largest amount in reconciling the difference between net income and cash flow from operating activities in fiscal 2013? In fiscal 2012? In fiscal 2011?

4. Identify the largest cash inflow and cash outflow for investing and for financing activities in fiscal 2013 and in fiscal 2012.