Refer to Apple Inc.’s consolidated financial statements in Appendix A and online in the filings section of www.sec.gov.

Requirements

1. Did accounts payable for Apple increase or decrease in 2016? Calculate Apple’s accounts payable turnover for 2016. How many days does it take Apple to pay an average account payable? Comment on the length of the period in days.

2. Examine Note 5—Income Taxes—in the Notes to Consolidated Financial Statements. Income tax provision is another title for income tax expense. What was Apple’s income tax provision in 2016? Is the income tax provision likely to be equal to the amount Apple paid for its taxes in 2016? Why or why not? What was the company’s effective tax rate in 2016?

3. Examine Note 10—Commitments and Contingencies—in the Notes to Consolidated Financial Statements. Describe some of Apple Inc.’s commitments and contingent liabilities as of September 24, 2016. Are any of these amounts included in the numbers in the balance sheet line items?