Refer to the latest financial report of Apple on its website, http://investor.apple.com. Answer the following questions using the consolidated balance sheet and notes to the consolidated financial statements.

Required

A. State the accounting equation for Apple in dollar figures at the end of the reporting period for the end and beginning of the last reporting year. Comment on what this reveals about Apple’s financing policy.

B. Explain why the change in total assets equals the change in total liabilities plus the change in total equity.

C. State Apple’s profit (loss) for the last reporting year.

D. Determine Apple’s net increase (decrease) in cash flows for the last reporting period in aggregate and by operating, investing and financing categories.

E. Explain how Apple could apply the principle of materiality of an item of financial information when preparing financial reports.

F. In the business case at the start of this chapter, Apple is identified as a company that ranks highly on the Global Reputation Index. Research and report on the factors that contribute to Apple’s high ranking in this index.

G. Corporate reporting is evolving and is more than reporting on profits. Reporting on the entity’s performance related to people and the planet is increasingly important and included within the annual report or as a stand-alone report. List examples of such reporting by Apple.