1. Look at Apple's recent financial statements, tell us based on 7-step processes whether the company is matured or something else like whether 7-step could be used in analyzing and forecasting APPL.

These are the 7 steps

1. Project revenues from sales and operating activities.

2. Project operating expenses and derive projected income.

3. Project operating assets and liabilities.

4. Project the financial leverage and capital structure.

5. Project non recurring gains or losses (if any).

6. Check whether the projected balance sheet is in balance.

7. Derive the projected statement of cash flows

2. If company has forecasted growth in its earnings but its operating cashflow is declining. Provide 3 reasons for declining operating cash flow.

Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) Years ended September 28, 2019 September 29, September 30, 2018 2017 Net sales: Products S 213,883 S 225,847 196,534 Services 46,291 39,748 32,700 Total net sales 260,174 265,595 229,234 Cost of sales: Products 144,996 148, 164 126,337 Services 16,786 15,592 14,711 Total cost of sales 161,782 163,756 141,048 Gross margin 98,392 101,839 88,186 Operating expenses: Research and development 16,217 14,236 11,581 Selling, general and administrative 18,245 16,705 15,261 Total operating expenses 34,462 30,941 26,842 Operating income 63,930 70,898 61,344 Other income/(expense), net 1,807 2.005 2,745 Income before provision for income taxes 65,737 72,903 64,089 Provision for income taxes 10,481 13,372 15,738 Net income $ 55,256 $ 59,531 $ 18,351 Earnings per share: Basic 11.97 $ 12.01 $ 3.27 Diluted 11.89 $ 11.91 $ 9.21 Shares used in computing earnings per share: Basic 4,617,834 4,955,377 5,217,242 Diluted 4,648,913 5,000, 109 5,251,692CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and parvalue) September 28, September 29, 2019 201 8 ASSETS: Current assets: Cash and cash equivalents S 48,844 $ 25,913 Marketable securities 51,713 40,388 Accounts receivable, net 22,926 23,1 86 Inventories 4,106 3,956 Vendor non-trade receivables 22,878 25,809 Other current assets 12,352 12,087 Total current assets 162,819 131,339 Non-current assets: Marketable securities 105,341 170,799 Property, plant and equipment, net 37,378 41.304 Other non-current assets 32,978 22,283 Total non-current assets 175,697 234,386 Total assets 338,516 $ 365,725 LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities: Accounts payable S 46,236 $ 55,8 88 Other current liabilities 37,720 33,327 Deferred revenue 5,522 5,966 Commercial paper 5,980 11,964 Term debt 10,260 B,784 Total current liabilities 105,718 115,929 Non-current liabilities: Ter debt 91,807 93,735 Other non-current liabilities 50,503 48,914 Total non-current liabilities 142,310 142,649 Total liabilities 248,028 258,578 Commitments and contingencies Shareholders' equity: Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 4,443,236 and 4,754,986 shares issued and outstanding, respectively 45,174 40,201 Retained earnings 45,898 70,400 Accumulated other comprehensive income/(loss) 584 (3,454) Total shareholders equity 90,488 107,147 Total liabilities and shareholders' equity 338,516 S 365,725Apple Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In millions, except per share amounts) Years ended September 28, September 29, September 30, 2019 2018 2017 Total shareholders' equity, beginning balances 107,147 $ 134,047 128,249 Common stock and additional paid-in capital: Beginning balances 40,201 35,867 31,251 Common stock issued 781 669 555 Common stock withheld related to net share settlement of equity awards (2,002) (1,778) (1,468) Share-based compensation 6.194 5,443 4.909 Tax benefit from equity awards, including transfer pricing adjustments 320 Ending balances 45,174 40,201 35,867 Retained eamings: Beginning balances 70,400 98,330 96,364 Net income 55,256 59,531 48,351 Dividends and dividend equivalents declared (14,129) (13,735) (12,803) Common stock withheld related to net share settlement of equity awards (1,029) (948) (581) Common stock repurchased (67,101) (73,056) (33,001) Cumulative effects of changes in accounting principles 2.501 278 Ending balances 45,898 70,400 98,330 Accumulated other comprehensive income/(loss): Beginning balances (3,454) (150) 634 Other comprehensive income/(loss) 2,781 (3,026) (784) Cumulative effects of changes in accounting principles 89 (278) Ending balances 584 3,454 150) Total shareholders' equity, ending balances 90,488 107,147 $ 134,047 Dividends and dividend equivalents declared per share or RSU S 3.00 $ 2.72 $ 2.40Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) Years ended September 28 September 29, September 30, 2019 2018 2017 Cash, cash equivalents and restricted cash, beginning balances 25,913 $ 20.289 20,484 Operating activities: Net income 55,256 59,531 48,351 Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization 12,547 10,903 10, 157 Share-based compensation expense 6,068 5,340 4,840 Deferred income tax expense/(benefit) (340) (32,590) 5,966 Other (652) (444) (166) Changes in operating assets and liabilities: Accounts receivable, net 245 (5,322) (2,093) Inventories (289) 828 (2,723) Vendor non-trade receivables 2,931 (8,010) (4,254) Other current and non-current assets 873 423) (5,318) Accounts payable (1,923) 9,175 8,966 Deferred revenue (625) (3) (593) Other current and non-current liabilities (4,700) 38 ,4 49 1,092 Cash generated by operating activities $9,391 77.434 64,225 Investing activities: Purchases of marketable securities (39,630) (71,356) (159,486) Proceeds from maturities of marketable securities 40, 102 55,881 31,775 Proceeds from sales of marketable securities 56,98B 47.838 94,564 Payments for acquisition of property, plant and equipment (10,495) (13,313) (12,45 1) Payments made in connection with business acquisitions, net (624) 721) (329) Purchases of non-marketable securities (1,001) (1,871) (52 1) Proceeds from non-marketable securities 1,634 353 126 Other (1,078) (745) (124) Cash generated by/(used in) investing activities 45,896 16,066 (46,446) Financing activities: Proceeds from issuance of common stock 781 669 555 Payments for taxes related to net share settlement of equity awards (2,817) (2,527) (1,874) Payments for dividends and dividend equivalents (14,119) (13,712) (12,769) Repurchases of common stock (66,897) (72,738) (32,900) Proceeds from issuance of term debt, net 6,963 6,969 28,662 Repayments of term debt (8, 805) (6,500) (3,500) Proceeds from/(Repayments of) commercial paper, net (5,977) (37) 3,852 Other 105) Cash used in financing activities (90,976) (87 ,876) (17,974) Increase/( Decrease) in cash, cash equivalents and restricted cash 24,311 5,624 (195) Cash, cash equivalents and restricted cash, ending balances 50,224 $ 25,913 $ 20,289 Supplemental cash flow disclosure: Cash paid for income taxes, net 15,263 $ 10,417 $ 11,591 Cash paid for interest 3,423 $ 3,022 $ 2,092