1 1 of 3 - + 80% Apple Inc. Consolidated Balance Sheets In millions As of Sept 30, 2019 As of Sept 30, 2018 As of Sept 30, 2017 Year ended Sept. 30, 2018 Year ended Sept. 30, 2017 $59.531 $ 48,351 ASSETS Cash & cash equivalents Short-term investments Accounts receivable Inventories Other current assets Total current assets Long-term investments Property, plant, & equipment, net Other non-current assets Total assets 10,903 5,340 (33,034) 10,157 4,840 5,800 $ 50,224 51,713 22,926 4,106 33,850 162,819 105,341 37,378 32,978 $ 338,516 $ 25,913 40,388 23,186 3,956 37,896 131,339 170,799 41,304 22,283 365,725 $ 20,289 53,892 17,874 4,855 31,735 128,645 194,714 33,783 18,177 $375,319 (5.322) 828 Apple Inc. Consolidated Statements of Cash Flows In millions Year ended Sept. 30, 2019 OPERATING ACTIVITIES Net Income $55,256 Adjustments to reconcile net income to cash from operations: Depreciation and amortization expense 12,547 Share-based compensation expense 6,068 Other, net (992) Changes in assets and liabilities: Accounts receivable, net 245 Inventories (289) Accounts payable (1,923) Unearned revenue (625) Other current and non-current assets and liabilities (896) Net cash provided by operating activities 69,391 INVESTING ACTIVITIES Purchases of marketable securities (39,630) Proceeds from sales and maturities of marketable securities 97,090 Purchases of property, plant and equipment (10,495) Other, net (1,069) Net cash used in investing activities 45,896 FINANCING ACTIVITIES Proceeds from issuance of common stock 781 Dividends paid (14,119) Repurchase of common stock (66,897) Proceeds from issuance of long-term debt, net 6,963 Repayments of long-term debt (8,805) Other, net (8,899) Net cash provided by financing activities (90,976) NET INCREASE IN CASH AND CASH EQUIVALENTS 24,311 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 25,913 CASH AND CASH EQUIVALENTS, END OF PERIOD $50,224 9,175 (44) 30,057 77,434 (2,093) (2,723) 9,618 (626) (9,726) 63,598 (71,356) 103,719 (13,313) (2,984) 16,066 (159,486) 126,339 (12,451) (848) (46,446) LIABILITIES & STOCKHOLDERS' EQUITY Accounts payable Accrued expenses Unearned revenue, current Commercial paper Current portion of long-term debt Total current liabilities Unearned revenue, non-current Long-term debt Other non-current liabilities Total liabilities Common stock and additional paid-in capital Treasury stock Retained earnings Accumulated other comprehensive income Total stockholders' equity Total liabilities & stockholders' equity $ 46,236 37.720 5,522 5,980 10,260 105.718 2,616 91,807 47,887 248,028 45,174 (300,700) 346,598 (584) 90,488 $ 338,516 $ 55,888 32,687 5,966 11,964 10,361 116,866 2,797 93.735 45,180 258,578 40,201 (233,599) 303,999 (3.454) 107,147 $365,725 $ 49,049 25,744 7,548 11,977 6,496 100,814 2,836 97,207 40,415 241,272 35,867 (160,543) 258,873 (150) 134,047 $375,319 669 (13,712) (72,738) 6,969 (6,500) (2,564) (87,876) 555 (12,769) (32,900) 28,662 (3,500) 1,978 (17,347) (195) 20,484 $ 20,289 5,624 20,289 $ 25,913 of 3 + 90% >> Apple Inc. Consolidated Income Statements In millions Year ended Sept. 30, 2019 $ 260,174 161,782 98,392 Year ended Sept. 30, 2018 $ 265,595 163,756 101,839 Year ended Sept. 30, 2017 $ 229,234 141,048 88,186 Net sales Cost of good sold Gross margin Operating expenses: Research and development Selling, general & administrative Operating income Interest and dividend income Interest expense Other expense/income), net Income before income taxes Income tax expense Net income 16,217 18,245 63,930 11,581 15,261 61,344 4,961 5,201 3,576 (422) 65,737 10,481 14,236 16,705 70,898 5,686 3,240 441 72,903 13,372 $ 59,531 2,323 133 64,089 15,738 $ 48,351 $ 55,256 Basic earnings per share $11.97 $ 12.01 $ 9.27 File Tools View Week 9 Assignment (SCF and Ratios) - Read-Only - Compatibility Mode - Word o 0 X Week 9 Assignment > Based on Apple's Statement of Cash Flows, does it appear that the company is in the part of its life cycle where it has slowing growth opportunities within the firm and is therefore returning cash to investors? Name: Part A - Interpret Apple Inc.'s Statement of Cash Flows Use Apple Inc.'s Statement of Cash Flows to answer the following questions. > Did Apple have a net inflow or a net outflow of cash related to operations in 2019? 00 > Did Apple have a net inflow or a net outflow of cash related to investing activities in 2019? > Did Apple have a net inflow or a net outflow of cash related to financing activities in 2019? > How much cash did Apple spend on PP&E purchases in 2019? > How much cash did Apple spend repurchasing its stock in 2019? > How much cash did Apple collect from customers in 2019*? *Note that Apple has both current and non current Unearned Revenue on its Balance Sheet. Apple has negligible bad debts so you can assume that net Accts Receivable equals gross Accts Receivable. > How much cash did Apple pay for inventory in 2019? Why does Apple add "Depreciation and amortization expense" in the Operating section of its Statement of Cash Flows? Screens 1-2 of 4 C) Focus 1 130% File Tools View Week 9 Assignment (SCF and Ratios) - Read-Only - Compatibility Mode - Word o 0 X EARNINGS PER SHARE DEBT-TO-EQUITY RATIO n/a PE RATIO n/a Part B - Calculate & Compare Apple Inc.'s 2019 and 2018 Ratios Use Apple's financial statements to calculate the following ratios and summary measures for fiscal 2019 and fiscal 2018. You can round your answers to the nearest tenth. Where applicable, indi- cate whether the ratio was more favorable in 2019 or 2018. Apple's stock price was $224 per share on September 30, 2019 and $230 on September 30, 2018. EBITDA End of document ! Is the Ratio more favorable in 2019 or 2018? Fiscal 2019 Fiscal 2018 DAYS RECEIVABLE DAYS INVENTORY CURRENT RATIO QUICK RATIO GROSS MARGIN% PROFIT MARGIN% Screens 3-4 of 4 Focus 1 130% 1 1 of 3 - + 80% Apple Inc. Consolidated Balance Sheets In millions As of Sept 30, 2019 As of Sept 30, 2018 As of Sept 30, 2017 Year ended Sept. 30, 2018 Year ended Sept. 30, 2017 $59.531 $ 48,351 ASSETS Cash & cash equivalents Short-term investments Accounts receivable Inventories Other current assets Total current assets Long-term investments Property, plant, & equipment, net Other non-current assets Total assets 10,903 5,340 (33,034) 10,157 4,840 5,800 $ 50,224 51,713 22,926 4,106 33,850 162,819 105,341 37,378 32,978 $ 338,516 $ 25,913 40,388 23,186 3,956 37,896 131,339 170,799 41,304 22,283 365,725 $ 20,289 53,892 17,874 4,855 31,735 128,645 194,714 33,783 18,177 $375,319 (5.322) 828 Apple Inc. Consolidated Statements of Cash Flows In millions Year ended Sept. 30, 2019 OPERATING ACTIVITIES Net Income $55,256 Adjustments to reconcile net income to cash from operations: Depreciation and amortization expense 12,547 Share-based compensation expense 6,068 Other, net (992) Changes in assets and liabilities: Accounts receivable, net 245 Inventories (289) Accounts payable (1,923) Unearned revenue (625) Other current and non-current assets and liabilities (896) Net cash provided by operating activities 69,391 INVESTING ACTIVITIES Purchases of marketable securities (39,630) Proceeds from sales and maturities of marketable securities 97,090 Purchases of property, plant and equipment (10,495) Other, net (1,069) Net cash used in investing activities 45,896 FINANCING ACTIVITIES Proceeds from issuance of common stock 781 Dividends paid (14,119) Repurchase of common stock (66,897) Proceeds from issuance of long-term debt, net 6,963 Repayments of long-term debt (8,805) Other, net (8,899) Net cash provided by financing activities (90,976) NET INCREASE IN CASH AND CASH EQUIVALENTS 24,311 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 25,913 CASH AND CASH EQUIVALENTS, END OF PERIOD $50,224 9,175 (44) 30,057 77,434 (2,093) (2,723) 9,618 (626) (9,726) 63,598 (71,356) 103,719 (13,313) (2,984) 16,066 (159,486) 126,339 (12,451) (848) (46,446) LIABILITIES & STOCKHOLDERS' EQUITY Accounts payable Accrued expenses Unearned revenue, current Commercial paper Current portion of long-term debt Total current liabilities Unearned revenue, non-current Long-term debt Other non-current liabilities Total liabilities Common stock and additional paid-in capital Treasury stock Retained earnings Accumulated other comprehensive income Total stockholders' equity Total liabilities & stockholders' equity $ 46,236 37.720 5,522 5,980 10,260 105.718 2,616 91,807 47,887 248,028 45,174 (300,700) 346,598 (584) 90,488 $ 338,516 $ 55,888 32,687 5,966 11,964 10,361 116,866 2,797 93.735 45,180 258,578 40,201 (233,599) 303,999 (3.454) 107,147 $365,725 $ 49,049 25,744 7,548 11,977 6,496 100,814 2,836 97,207 40,415 241,272 35,867 (160,543) 258,873 (150) 134,047 $375,319 669 (13,712) (72,738) 6,969 (6,500) (2,564) (87,876) 555 (12,769) (32,900) 28,662 (3,500) 1,978 (17,347) (195) 20,484 $ 20,289 5,624 20,289 $ 25,913 of 3 + 90% >> Apple Inc. Consolidated Income Statements In millions Year ended Sept. 30, 2019 $ 260,174 161,782 98,392 Year ended Sept. 30, 2018 $ 265,595 163,756 101,839 Year ended Sept. 30, 2017 $ 229,234 141,048 88,186 Net sales Cost of good sold Gross margin Operating expenses: Research and development Selling, general & administrative Operating income Interest and dividend income Interest expense Other expense/income), net Income before income taxes Income tax expense Net income 16,217 18,245 63,930 11,581 15,261 61,344 4,961 5,201 3,576 (422) 65,737 10,481 14,236 16,705 70,898 5,686 3,240 441 72,903 13,372 $ 59,531 2,323 133 64,089 15,738 $ 48,351 $ 55,256 Basic earnings per share $11.97 $ 12.01 $ 9.27 File Tools View Week 9 Assignment (SCF and Ratios) - Read-Only - Compatibility Mode - Word o 0 X Week 9 Assignment > Based on Apple's Statement of Cash Flows, does it appear that the company is in the part of its life cycle where it has slowing growth opportunities within the firm and is therefore returning cash to investors? Name: Part A - Interpret Apple Inc.'s Statement of Cash Flows Use Apple Inc.'s Statement of Cash Flows to answer the following questions. > Did Apple have a net inflow or a net outflow of cash related to operations in 2019? 00 > Did Apple have a net inflow or a net outflow of cash related to investing activities in 2019? > Did Apple have a net inflow or a net outflow of cash related to financing activities in 2019? > How much cash did Apple spend on PP&E purchases in 2019? > How much cash did Apple spend repurchasing its stock in 2019? > How much cash did Apple collect from customers in 2019*? *Note that Apple has both current and non current Unearned Revenue on its Balance Sheet. Apple has negligible bad debts so you can assume that net Accts Receivable equals gross Accts Receivable. > How much cash did Apple pay for inventory in 2019? Why does Apple add "Depreciation and amortization expense" in the Operating section of its Statement of Cash Flows? Screens 1-2 of 4 C) Focus 1 130% File Tools View Week 9 Assignment (SCF and Ratios) - Read-Only - Compatibility Mode - Word o 0 X EARNINGS PER SHARE DEBT-TO-EQUITY RATIO n/a PE RATIO n/a Part B - Calculate & Compare Apple Inc.'s 2019 and 2018 Ratios Use Apple's financial statements to calculate the following ratios and summary measures for fiscal 2019 and fiscal 2018. You can round your answers to the nearest tenth. Where applicable, indi- cate whether the ratio was more favorable in 2019 or 2018. Apple's stock price was $224 per share on September 30, 2019 and $230 on September 30, 2018. EBITDA End of document ! Is the Ratio more favorable in 2019 or 2018? Fiscal 2019 Fiscal 2018 DAYS RECEIVABLE DAYS INVENTORY CURRENT RATIO QUICK RATIO GROSS MARGIN% PROFIT MARGIN% Screens 3-4 of 4 Focus 1 130%