a. Calculate cash flows from assets, cash flows to creditors, and cash flows to shareholders for 2019. b. Create a statement of cash flow (accounting statement) for 2019. c. Calculate cash cycle. d. Conduct a thorough financial ratio analysis. e. Use the percent-of-sales formula to calculate the amount of external financing needed for year 2020. (Assumptions: Sales are expected to grow by 8 percent in year 2020, the net profit margin is expected to be 12 percent, and the dividend payout ratio is 35 percent. The fixed assets are currently being used at full capacity.) 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 Not 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 144.996 16,786 161,782 98,392 148,164 15,592 163,756 101,839 126,337 14,711 141,048 88,186 Grons margin 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 63,930 1.807 70,898 2,005 61,344 2,745 AA 01 AA 6 M GO F C G cal + blackboard.richmond.edu/bbcswebdav/pid-1142978-de-content-rid-67423121/courses/202010_16578/AAPL%20Financials%20FY2019%281%2. FY2019.pdf 4/5 Income before provision for Income taxes Provision for income taxe Not income 65,737 10,481 55,250 $ 72,903 13,372 59,531 $ 64,089 15,738 49,351 $ Earnings per share Basic Dated $ 11.97 $ 11.89 $ 12.01 S 11.91 $ 9.27 9.21 $ Shares used in computing earrings per share Basic Duted 4,617,834 4,648,913 4,955,377 5.000 100 5.217.242 5.251,692 See accompanying Notes to Consoldated Financial Statements Apple Inc. 2019 Form 10-K 129 Type here to search O 616P 5 o 2 8 E R 7 Y G H X c V B N M + wo 06 Ca WM BD EX BOX My las G F G Card richmond.edu/bbcswebdav/pid-1142978-dt-content-rid-6742312 1/courses/202010 16578/AAPL%20Financials 620FY2019%281%2 pdf 5/5 Apple Inc. CONSOLIDATED BALANCE SHEETS (in Millions, except number of shares which are reflected in thousands and par value) September 20, 2019 September 20 2018 ASSETS: ont assots: Cash and cash equivalents Marketable securities Accounts receivable, et Inventories Vendor non-trade receivables Other current assets Total current assets 48,844 $ 51.713 22,926 4.106 22,878 12,352 25,913 40,388 23,186 3.956 25,800 12,087 131,330 162,819 on-current assets Marketable securities Property, plant and equipment, not Other non-current ass Total noncurrentes Tot assos 105,341 37 378 32,078 175.697 338,510 $ 170,799 41 304 22283 234.386 365.725 $ there to search o BP STPM 9/29/2020 8 R U F G H K X V B N M alt Ctrl Pri M As BDM Bb C BE G C F C GA + blackboard richmond edu/bbcswebdav/pid-1142978-dt-content-rid-6742312 1/courses/202010 1657B/AAPL%20Financials 20FY2019%281%2.7 /2019.pdf 5/5 LIABILITIES AND SHAREHOLDERS' EQUITY: $ $ urrent labilties Accounts payable Other current labilises Deferred revenue Commercial paper Torm debt Total current labites 46,236 37.720 5,522 5.980 10,260 105,718 55,888 33,327 5,966 11,964 8,784 115,029 Non currentlasses Term dett Other non-current liabilities Total non-current abilities Total abilities 91,807 50,503 142,310 248,028 93,735 48,914 142.649 258,578 Comments and contingencies Shareholders' equity Common stock and additional paisin capital, 0.0000 par vale 12.600.000 shares the 4.443.238 and 4,754.986 haressed and outstanding, respectively Accumulated other comprehensive Incomess) Total shareholders equity 45,174 45.98 (504) 90,488 40,201 70.400 e here to search o 3.454) 107.147 N + 8 9 O R U o D F G H K x c V B || N > M WA OF Ex M GO 140 FG + blackboard richmond.edu/bbcswebdav/pid-1142978-dt-content-rid-6742312 1/courses/202010_1657BAAPL%20Financials%20FY2019%2812.. 5 / 5 cials FY2019.pdf CITRO Tarm debt Other non-current abilities Total non-current abilities Total abies 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, 30.0000 per valus 12.600.000 shares author 4,443 236 and 4754.986 shared and outstanding, respectively Ruined camings Accumulated other comprehensive income oss) Total shareholders' equity Tetulabates and shareholders' equity 45,174 45,899 (584) 90488 341 516 40,201 70.400 (3.454) 107,147 365,725 Seo comparing Notes to Consolidated Financial Statements Apple Inc. 2018 Form 10-K131 Type here to search o 617 22 8 R U P D F G H V N M alt chil FY2019.pdf 4 / 5 Income before provision for income taxes Provision for Income taxes Net income 65,737 10.481 55,256 $ 72,903 13,372 59,531 64,089 15,738 48,351 $ Earnings per share Basic Diluted 11.97 11.89 $ $ 12.01 11.91 $ $ 9.27 9.21 $ Shares used in computing camnings per share: Basic Diluted 4,617,834 4.648,913 4,955,377 5,000,109 5,217,242 5,251,692 See accompanying Notes to Consolidated Financial Statements. Apple Inc. 2019 Form 10-K | 29 a. Calculate cash flows from assets, cash flows to creditors, and cash flows to shareholders for 2019. b. Create a statement of cash flow (accounting statement) for 2019. c. Calculate cash cycle. d. Conduct a thorough financial ratio analysis. e. Use the percent-of-sales formula to calculate the amount of external financing needed for year 2020. (Assumptions: Sales are expected to grow by 8 percent in year 2020, the net profit margin is expected to be 12 percent, and the dividend payout ratio is 35 percent. The fixed assets are currently being used at full capacity.) 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 Not 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 144.996 16,786 161,782 98,392 148,164 15,592 163,756 101,839 126,337 14,711 141,048 88,186 Grons margin 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 63,930 1.807 70,898 2,005 61,344 2,745 AA 01 AA 6 M GO F C G cal + blackboard.richmond.edu/bbcswebdav/pid-1142978-de-content-rid-67423121/courses/202010_16578/AAPL%20Financials%20FY2019%281%2. FY2019.pdf 4/5 Income before provision for Income taxes Provision for income taxe Not income 65,737 10,481 55,250 $ 72,903 13,372 59,531 $ 64,089 15,738 49,351 $ Earnings per share Basic Dated $ 11.97 $ 11.89 $ 12.01 S 11.91 $ 9.27 9.21 $ Shares used in computing earrings per share Basic Duted 4,617,834 4,648,913 4,955,377 5.000 100 5.217.242 5.251,692 See accompanying Notes to Consoldated Financial Statements Apple Inc. 2019 Form 10-K 129 Type here to search O 616P 5 o 2 8 E R 7 Y G H X c V B N M + wo 06 Ca WM BD EX BOX My las G F G Card richmond.edu/bbcswebdav/pid-1142978-dt-content-rid-6742312 1/courses/202010 16578/AAPL%20Financials 620FY2019%281%2 pdf 5/5 Apple Inc. CONSOLIDATED BALANCE SHEETS (in Millions, except number of shares which are reflected in thousands and par value) September 20, 2019 September 20 2018 ASSETS: ont assots: Cash and cash equivalents Marketable securities Accounts receivable, et Inventories Vendor non-trade receivables Other current assets Total current assets 48,844 $ 51.713 22,926 4.106 22,878 12,352 25,913 40,388 23,186 3.956 25,800 12,087 131,330 162,819 on-current assets Marketable securities Property, plant and equipment, not Other non-current ass Total noncurrentes Tot assos 105,341 37 378 32,078 175.697 338,510 $ 170,799 41 304 22283 234.386 365.725 $ there to search o BP STPM 9/29/2020 8 R U F G H K X V B N M alt Ctrl Pri M As BDM Bb C BE G C F C GA + blackboard richmond edu/bbcswebdav/pid-1142978-dt-content-rid-6742312 1/courses/202010 1657B/AAPL%20Financials 20FY2019%281%2.7 /2019.pdf 5/5 LIABILITIES AND SHAREHOLDERS' EQUITY: $ $ urrent labilties Accounts payable Other current labilises Deferred revenue Commercial paper Torm debt Total current labites 46,236 37.720 5,522 5.980 10,260 105,718 55,888 33,327 5,966 11,964 8,784 115,029 Non currentlasses Term dett Other non-current liabilities Total non-current abilities Total abilities 91,807 50,503 142,310 248,028 93,735 48,914 142.649 258,578 Comments and contingencies Shareholders' equity Common stock and additional paisin capital, 0.0000 par vale 12.600.000 shares the 4.443.238 and 4,754.986 haressed and outstanding, respectively Accumulated other comprehensive Incomess) Total shareholders equity 45,174 45.98 (504) 90,488 40,201 70.400 e here to search o 3.454) 107.147 N + 8 9 O R U o D F G H K x c V B || N > M WA OF Ex M GO 140 FG + blackboard richmond.edu/bbcswebdav/pid-1142978-dt-content-rid-6742312 1/courses/202010_1657BAAPL%20Financials%20FY2019%2812.. 5 / 5 cials FY2019.pdf CITRO Tarm debt Other non-current abilities Total non-current abilities Total abies 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, 30.0000 per valus 12.600.000 shares author 4,443 236 and 4754.986 shared and outstanding, respectively Ruined camings Accumulated other comprehensive income oss) Total shareholders' equity Tetulabates and shareholders' equity 45,174 45,899 (584) 90488 341 516 40,201 70.400 (3.454) 107,147 365,725 Seo comparing Notes to Consolidated Financial Statements Apple Inc. 2018 Form 10-K131 Type here to search o 617 22 8 R U P D F G H V N M alt chil FY2019.pdf 4 / 5 Income before provision for income taxes Provision for Income taxes Net income 65,737 10.481 55,256 $ 72,903 13,372 59,531 64,089 15,738 48,351 $ Earnings per share Basic Diluted 11.97 11.89 $ $ 12.01 11.91 $ $ 9.27 9.21 $ Shares used in computing camnings per share: Basic Diluted 4,617,834 4.648,913 4,955,377 5,000,109 5,217,242 5,251,692 See accompanying Notes to Consolidated Financial Statements. Apple Inc. 2019 Form 10-K | 29