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) September 28, 2019 Years ended September 29, 2018 September 30, 2017 $ Net sales: Products Services Total net sales 213,883 $ 46,291 260,174 225,847 $ 39,748 265,595 196,534 32,700 229,234 Cost of sales: Products Services Total cost of sales Gross margin 144,996 16,786 161,782 98,392 148,164 15,592 163,756 101,839 126,337 14,711 141,048 88,186 Operating expenses: Research and development Selling, general and administrative Total operating expenses 16,217 18,245 34,462 14,236 16,705 30,941 11,581 15,261 26,842 Operating income Other income (expense), net Income before provision for income taxes Provision for income taxes Net income 63,930 1,807 65,737 10,481 55,256 $ 70,898 2,005 72,903 13,372 59,531 $ 61,344 2,745 64,089 15,738 48,351 $ Earnings per share: Basic Diluted $ 9.27 11.97 $ 11.89 $ 12.01 $ 11.91 $ S 9.21 Shares used in computing earnings per share: Basic Diluted 4,617,834 4,648,913 4,955,377 5,000,109 5,217,242 5,251,692 ISOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 28, 2019 September 29, 2018 ASSETS: Current assets: Cash and cash equivalents Marketable securities Accounts receivable, net Inventories Vendor non-trade receivables Other current assets Total current assets 48,844 $ 51,713 22,926 4,106 22,878 12,352 162,819 25,913 40,388 23,186 3,956 25,809 12,087 131,339 Non-current assets: Marketable securities Property, plant and equipment, net Other non-current assets Total non-current assets Total assets 105,341 37,378 32,978 175,697 338,516 $ 170,799 41,304 22,283 234,386 365,725 LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities: Accounts payable Other current liabilities Deferred revenue Commercial paper Tem debt Total current liabilities 46,236 $ 37,720 5,522 5,980 10,260 105,718 55,888 33,327 5,966 11,964 8,784 115,929 Non-current liabilities: Tem debt Other non-current liabilities Total non-current liabilities Total liabilities 91,807 50,503 142,310 248,028 93,735 48,914 142,649 258,578 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 4754,986 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income/(loss) Total shareholders' equity Total liabilities and shareholders' equity 45,174 45,898 (584) 90,488 338,516 40,201 70,400 (3,454) 107,147 365,725 $ Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) Years ended September 28, September 29 September 30, 2019 2018 2017 $ 25,913 $ 20,289 $ 20,484 55,256 59,531 48,351 12,547 6,068 (340) (652) 10,903 5,340 (32,590) (444) 10,157 4,840 5,966 (166) 245 (289) 2,931 873 (1,923) (625) (4,700) 69,391 (5,322) 828 (8,010) (423) 9,175 (3) 38,449 77.434 (2,093) (2.723) (4,254) (5,318) 8,966 (593) 1,092 64,225 Cash, cash equivalents and restricted cash, beginning balances Operating activities: Net income Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization Share-based compensation expense Deferred income tax expense/benefit) Other Changes in operating assets and liabilities: Accounts receivable, net Inventories Vendor non-trade receivables Other current and non-current assets Accounts payable Deferred revenue Other current and non-current liabilities Cash generated by operating activities Investing activities: Purchases of marketable securities Proceeds from maturities of marketable securities Proceeds from sales of marketable securities Payments for acquisition of property, plant and equipment Payments made in connection with business acquisitions, net Purchases of non-marke table securities Proceeds from non-marketable securities Other Cash generated by/(used in) investing activities Financing activities: Proceeds from issuance of common stock Payments for taxes related to net share settlement of equity awards Payments for dividends and dividend equivalents Repurchases of common stock Proceeds from issuance of term debt, net Repayments of term debt Proceeds from/(Repayments of commercial paper, net Other Cash used in financing activities Increase/Decrease) in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash, ending balances Supplemental cash flow disclosure: Cash paid for income taxes, net Cash paid for interest (39,630) 40,102 56,988 (10,495) (624) (1,001) 1,634 (1,078) 45,896 (71,356) 55,881 47,838 (13,313) (721) (1.871) 353 (745) 16,066 (159,486) 31,775 94,564 (12,451) (329) (521) 126 (124) (46,446) 781 555 (2,817) (14,119) (66,897) 6,963 (8,805) (5,977) (105) (90,976) 669 (2,527) (13.712) (72,738) 6,969 (6.500) (37) (1,874) (12,769) (32,900) 28,662 (3,500) 3,852 (17,974) 24,311 50,224 $ (87,876) 5,624 25,913 $ (195) 20,289 $ $ 15,263 $ 3,423 $ 10,417 $ 3,022 $ 11,591 2,092 $ Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) September 28, 2019 Years ended September 29, 2018 September 30, 2017 $ Net sales: Products Services Total net sales 213,883 $ 46,291 260,174 225,847 $ 39,748 265,595 196,534 32,700 229,234 Cost of sales: Products Services Total cost of sales Gross margin 144,996 16,786 161,782 98,392 148,164 15,592 163,756 101,839 126,337 14,711 141,048 88,186 Operating expenses: Research and development Selling, general and administrative Total operating expenses 16,217 18,245 34,462 14,236 16,705 30,941 11,581 15,261 26,842 Operating income Other income (expense), net Income before provision for income taxes Provision for income taxes Net income 63,930 1,807 65,737 10,481 55,256 $ 70,898 2,005 72,903 13,372 59,531 $ 61,344 2,745 64,089 15,738 48,351 $ Earnings per share: Basic Diluted $ 9.27 11.97 $ 11.89 $ 12.01 $ 11.91 $ S 9.21 Shares used in computing earnings per share: Basic Diluted 4,617,834 4,648,913 4,955,377 5,000,109 5,217,242 5,251,692 ISOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 28, 2019 September 29, 2018 ASSETS: Current assets: Cash and cash equivalents Marketable securities Accounts receivable, net Inventories Vendor non-trade receivables Other current assets Total current assets 48,844 $ 51,713 22,926 4,106 22,878 12,352 162,819 25,913 40,388 23,186 3,956 25,809 12,087 131,339 Non-current assets: Marketable securities Property, plant and equipment, net Other non-current assets Total non-current assets Total assets 105,341 37,378 32,978 175,697 338,516 $ 170,799 41,304 22,283 234,386 365,725 LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities: Accounts payable Other current liabilities Deferred revenue Commercial paper Tem debt Total current liabilities 46,236 $ 37,720 5,522 5,980 10,260 105,718 55,888 33,327 5,966 11,964 8,784 115,929 Non-current liabilities: Tem debt Other non-current liabilities Total non-current liabilities Total liabilities 91,807 50,503 142,310 248,028 93,735 48,914 142,649 258,578 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 4754,986 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income/(loss) Total shareholders' equity Total liabilities and shareholders' equity 45,174 45,898 (584) 90,488 338,516 40,201 70,400 (3,454) 107,147 365,725 $ Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) Years ended September 28, September 29 September 30, 2019 2018 2017 $ 25,913 $ 20,289 $ 20,484 55,256 59,531 48,351 12,547 6,068 (340) (652) 10,903 5,340 (32,590) (444) 10,157 4,840 5,966 (166) 245 (289) 2,931 873 (1,923) (625) (4,700) 69,391 (5,322) 828 (8,010) (423) 9,175 (3) 38,449 77.434 (2,093) (2.723) (4,254) (5,318) 8,966 (593) 1,092 64,225 Cash, cash equivalents and restricted cash, beginning balances Operating activities: Net income Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization Share-based compensation expense Deferred income tax expense/benefit) Other Changes in operating assets and liabilities: Accounts receivable, net Inventories Vendor non-trade receivables Other current and non-current assets Accounts payable Deferred revenue Other current and non-current liabilities Cash generated by operating activities Investing activities: Purchases of marketable securities Proceeds from maturities of marketable securities Proceeds from sales of marketable securities Payments for acquisition of property, plant and equipment Payments made in connection with business acquisitions, net Purchases of non-marke table securities Proceeds from non-marketable securities Other Cash generated by/(used in) investing activities Financing activities: Proceeds from issuance of common stock Payments for taxes related to net share settlement of equity awards Payments for dividends and dividend equivalents Repurchases of common stock Proceeds from issuance of term debt, net Repayments of term debt Proceeds from/(Repayments of commercial paper, net Other Cash used in financing activities Increase/Decrease) in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash, ending balances Supplemental cash flow disclosure: Cash paid for income taxes, net Cash paid for interest (39,630) 40,102 56,988 (10,495) (624) (1,001) 1,634 (1,078) 45,896 (71,356) 55,881 47,838 (13,313) (721) (1.871) 353 (745) 16,066 (159,486) 31,775 94,564 (12,451) (329) (521) 126 (124) (46,446) 781 555 (2,817) (14,119) (66,897) 6,963 (8,805) (5,977) (105) (90,976) 669 (2,527) (13.712) (72,738) 6,969 (6.500) (37) (1,874) (12,769) (32,900) 28,662 (3,500) 3,852 (17,974) 24,311 50,224 $ (87,876) 5,624 25,913 $ (195) 20,289 $ $ 15,263 $ 3,423 $ 10,417 $ 3,022 $ 11,591 2,092 $