The financial statements of Apple Inc. are presented in Appendix A. The complete annual report, including the notes to the financial statements, is available at the company's website.

Instructions
Answer the following questions about current and contingent liabilities and payroll costs.
a. What were Apple's total current liabilities at September 28, 2019? What was the increase/decrease in Apple's total current liabilities from the prior year?
b. In Apple's Note 10, the company explains the nature of its contingencies. Select one of the legal matters and explain how the company accounted for it.
c. What were the components of total current liabilities on September 28, 2019?

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Net sales: Products Services Total net sales Cost of sales: Products Services Total cost of sales Gross margin Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except number of shares which are reflected in thousands and per share amounts) Years ended September 28, September 29, September 30, 2019 2018 2017 Operating expenses: Research and development Selling, general and administrative Total operating expenses Operating income Other income/(expense), net Income before provision for income taxes Provision for income taxes Net income Earnings per share: Basic Diluted Shares used in computing earnings per share: Basic Diluted $ 213,883 46,291 260,174 $ 144,996 16,786 161,782 98,392 16,217 18,245 34,462 63,93 1,807 65,737 10,481 55,256 $ 11.97 $ 11.89 4,617,834 4,648,913 $ 225,847 39,748 265,595 148,164 15,592 163,756 101,839 $ $ 14,236 16,705 30,941 70,898 2,005 72,903 13,372 $ 59,531 12.01 11.91 4,955,377 5,000,109 $ 196,534 32,700 229,234 $ $ 126,337 14,711 141,048 88,186 11,581 15,261 26,842 61,344 2,745 64,089 15,738 48,351 9.27 9.21 5,217,242 5,251,692