The notes that accompany a company’s fi nancial statements provide informative details that would clutter the amounts and descriptions presented in the statements. Refer to the fi nancial statements of Apple Inc. in Appendix A. Instructions for accessing and using the company’s complete annual report, including the notes to the fi nancial statements, are also provided in Appendix A.

Instructions Answer the following questions. (Give the amounts in thousands of dollars, as shown in Apple’s annual report.)

(a) What did Apple report for the amount of inventories in its Consolidated Balance Sheet at September 27, 2014? At September 28, 2013?

(b) Compute the dollar amount of change and the percentage change in inventories between 2013 and 2014. Compute inventory as a percentage of current assets for 2014.

(c) What are the cost of sales reported by Apple for 2014, 2013, and 2012? Compute the ratio of cost of sales to net sales in 2014.