2.) Using the Apple, Inc. Statement of Cash flows on the following page, answer the following questions:

a) Which method does Apple use to report net cash flows from operating activities? How do you know?

b) Apple earned net income during 2016. Did operations provide cash or use cash during 2016? Give the amount. How did operating cash during 2016 compare with 2015?

c) For the year ended September 24, 2016, did Apple pay cash dividends? If so, how much?

d) For the year ended September 24, 2016, did Apple use cash to purchase property, plant, and equipment? If so, how much?

Apple Inc. Consolidated Statement or Cash Flows USD sin millions 12 months ended Sep 24, 2016 Sep 26, 2015 53,394 Net income 45,687 Depreciation and amortization 10 505 11.257 4210 Share-based compensation expens 3,586 Deferred ncome tax expense 4.938 1.382 Dnventories 217 -238 Deferred revenue -1 554 1.042 other current and non-current iabilities -2.104 8746 11,647 484 Changes in operating assets and liabilitie Adjustments to reconcile net income to cash generated by operating activities 20,137 27,872 Cash generated by operating activities 65,824 81,266 Purchases of marketable Securities 142.428 -166.402 107,447 Payments made in connection with business 297 343 acquisitions, net Payments for acquisition of property, plant and equipment 12,734 -11,247 Payments for strategic investments -45977 -56,274 Cash used in investing activities 495 513 Proceeds from issuance of common stock Excess tax benefits from equity awards 407 749 Payments for taxes related to net share settlement of equity awards 1,570 1.499 Payments for dividends and divdend equivalents -12.150 -11.561 Repurchases of common stoc 29,722 Repayments of term debt -2.500 .397 2.191 Change in commercial paper, net -20,483 -17,716 Cash generated by (used in) financing activitie -636 Increase (decrease) in cash and cash equivalents 7,276 Cash and cash equivalents, beginning of the year 21.120 13 Cash and cash equivalents, end of the year 20,484 21,120 Source: Apple Inc.Annual Reports