Reading Apple Computer’s Statement of Cash Flows The following items appeared in the Investing Activities section of Apple Computer’s 2006 statement of cash flows. (All amounts are in millions of dollars.)

Required 1. What amount did Apple spend in 2006 to purchase short-term investments? How does this amount compare to the amounts spent in the two prior years?
2. What amount did Apple receive from investments that matured in 2006? How does this amount compare to the amounts received in the two prior years?
3. The third line in the preceding excerpt reports proceeds from sales, rather than maturities, of investments. Why would certain types of investments mature while others would be sold?

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2006 2005 2004 (Restated) (Restated) Purchases of short-term investments $(7,255) $(11,470) $(3,270) Proceeds from maturities of short-term investments 7,226 8,609 1,141 Proceeds from sales of investments 1,086 586 806 Purchases of long-term investments (25) - -