The statement of cash flows for Apple Computer Inc. for the year ended September 24,2005 , is shown below. Use it to answer the following questions. (LO 5)

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a. Did Apple purchase any property, plant, or equipment during the year?

b. If you were to examine Apple's balance sheet at September 24, 2005, what amount would be shown for cash and cash equivalents?

c. Was cash generated from operations or used by operations? By what amount?

d. Did Apple receive any new contributions from owners during the year? How can you tell?

e. What was the primary source of cash for Apple for the year ended September 24, 2005? What does this say to you about Apple's operations for this year?

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Apple Computer Inc. Adapted Statement of Cash Flows For the year ended September 24, 2005 (in millions) Cash and cash equivalents, beginning of the year $2,969 Operating Activities: Net income (loss) 1,335 Adjustments to reconcile net income to cash generated by operating activities: 1,200 Cash generated by operating activities 2,535 Investing Activities: Purchase of short-term investments (11,470) Proceeds from maturities of short-term investments 8,609 Proceeds from sales of short-term investments 586 Purchase of property, plant, and equipment (260) Other Cash generated by (used for) investing activities Financing Activities: Proceeds from issuance of common stock Cash generated by (used for) financing activities Increase (decrease) in cash and cash equivalents Cash and cash equivalents, end of the year (21) (2,556) 543 543 522 $3,491