3. Search the footnotes of the 2009 10-K to answer the following questions: a. Briefly explain Apples revenue recognition policies for iPhone and Apple TV (in your own words). b. Does this method reflect the underlying economics of the business? c. Is there any indication in the 2009 10-K that this type of accounting might change?

4. restate Apples revenue in 2009 to reflect an accounting recognition of 100% of revenues and related costs recognized at the time of sale. a. What effect would this have on revenue and revenue growth in 2009? b. What effect would this have on earnings?

Assume that instead of using its then existing revenue recognition policies for iPhone and Apple TV, Apple instead recognized all revenues and associated costs at the time of sale. Estimate the Net Income that Apple would have reported for the fiscal year ended September 26, 2009.

Account / Measure	As originally filed	Adjustments	Restated Numbers
Revenue
Cost of Sales
Gross Margin
Gross Margin %
Income before taxes
Provision for taxes
Net Income
Notes:

5. Based on your analysis above, forecast Apples 2010 revenues for the iPhone assuming an expected growth in iPhone units of 90%.

These are the case questions, I primarily need help with 4 and 5. I have updated the question after reviewing the comments