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 2014, 2013, and 2012, 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 2014? In fiscal 2013? In fiscal 2012?

4. Identify the largest cash inflow and cash outflow for investing and for financing activities in fiscal 2014 and in fiscal 2013.

Apple's financial statements from Appendix A 

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Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 27, 2014 September 28, 2013 ASSETS: Current assets: Cash and cash equivalents Short-term marketable securities Accounts receivable, less allowances of $86 and $99, respectively Inventories 24 13,844 14,259 11,233 26,287 13,102 1,764 17,460 2,111 Deferred tax assets 4,318 3,453 Vendor non-trade receivables 9,759 7,539 Other current assets 9,806 6,882 68,531 130,162 Total current assets 73,286 Long-term marketable securities Property, plant and equipment, net Goodwill 106,215 20,624 16,597 4,616 1,577 Acquired intangible assets, net 4,142 4,179 5,146 Other assets 3,764 Total assets 231,839 207,000 LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities: %24 Accounts payable Accrued expenses 30,196 22,367 13,856 18,453 Deferred revenue 8,491 7,435 Commercial paper 6,308 Total current liabilities 63,448 43,658 Deferred revenue – non-current 3,031 2,625 Long-term debt 28,987 16,960 Other non-current liabilities 24,826 20,208 83,451 Total liabilities 120,292 Commitments and contingencies Shareholders' equity: Common stock and additional paid-in capital, $0.00001 par value; 12,600,000 shares authorized; 5,866,161 and 6,294,494 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income/(loss) Total shareholders' equity Total liabilities and shareholders' equity 23,313 19,764 87,152 104,256 1,082 (471) 123,549 111,547 231,839 207,000