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

Instructions

Using the financial statements and reports, answer these questions about Apple's internal controls and cash.

a. What comments, if any, are made about cash in the "Report of Independent Registered Public Accounting Firm"?

b. What data about cash and cash equivalents are shown in the consolidated balance sheet (statement of financial position)?

c. What activities are identified in the consolidated statement of cash flows as being responsible for the changes in cash during 2020 ?

d. How are cash equivalents defined in the Notes to Consolidated Financial Statements?

e. Read the section of the report titled "Management's Report on Internal Control Over Financial Reporting." Summarize the statements made in that section of the report.

Data from Appendix A

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Net sales: Products Services Total net sales Cost of sales: Products Services Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) Total cost of sales Gross margin Years ended September 26, September 28, September 29, 2020 2019 2018 $ 220,747 53,768 274,515 151,286 18,273 169,559 104,956 $ 213,883 46,291 260,174 144,996 16,786 161,782 98,392 $ 225,847 39,748 265,595 148,164 15,592 163,756 101,839