a. Describe and compare the operating performance for your company from 2019 to 2020 by analyzing the change in their income statements for these years.
Make sure to explain how the impact of the Covid-19 pandemic affected your company's operating performance on the income statement to improve
or worsen from 2019 to 2020. Due to the impact of the Covid-19 pandemic, describe how your company's daily operations possibly changed in
providing products or services to its customers from 2019 to 2020.
b. Describe a new service or product that you would recommend for your company to offer to its customers due to the impact of the COVID-19 pandemic.
Explain how your new service or product would potentially bring value to the company's operating performance and its customers by improving:
sales price, quality, and innovative features for your customer. Would your new product or service potentially increase the company's market share
in comparison to its competitors by generating new types of customers and/or retaining existing customers?

Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) Years ended September 26, 2020 September 28, 2019 September 29, 2018 $ Net sales: Products Services Total net sales 220,747 $ 53,768 274,515 213,883 $ 46,291 260, 174 225,847 39,748 265,595 Cost of sales: Products Services Total cost of sales Gross margin 151,286 18,273 169,559 104,956 144,996 16,786 161.782 98,392 148,164 15,592 163,756 101,839 Operating expenses: Research and development Selling, general and administrative Total operating expenses 18,752 19,916 38,668 16,217 18,245 34,462 14,236 16,705 30,941 Operating income Other income/(expense), net Income before provision for income taxes Provision for income taxes Net income 66,288 803 67,091 9,680 57,411 $ 63,930 1,807 65,737 10,481 55,256 $ 70,898 2,005 72,903 13,372 59,531 $ Earnings per share: Basic $ 3.31 $ 2.99 $ 3.00 Diluted $ 3.28 $ 2.97 $ 2.98 Shares used in computing earnings per share: Basic Diluted 17,352,119 17,528,214 18,471,336 18,595,651 19,821,510 20,000,435 See accompanying Notes to Consolidated Financial Statements. Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 26, 2020 September 28, 2019 ASSETS: $ Current assets: Cash and cash equivalents Marketable securities Accounts receivable, net Inventories Vendor non-trade receivables Other current assets 38,016 $ 52,927 16,120 4,061 21,325 11,264 48,844 51,713 22,926 4,106 22,878 12,352 162,819 Total current assets 143,713 Non-current assets: Marketable securities Property, plant and equipment, net Other non-current assets Total non-current assets 100,887 36,766 42,522 180,175 323,888 $ 105,341 37,378 32,978 175,697 338,516 Total assets $ LIABILITIES AND SHAREHOLDERS' EQUITY: $ $ Current liabilities: Accounts payable Other current liabilities Deferred revenue Commercial paper Term debt Total current liabilities 42,296 42,684 6,643 4,996 8,773 105,392 46,236 37,720 5,522 5,980 10,260 105,718 Non-current liabilities: Term debt Other non-current liabilities Total non-current liabilities Total liabilities 98,667 54,490 153, 157 258,549 91,807 50,503 142,310 248,028 Commitments and contingencies Shareholders' equity: Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 16,976,763 and 17,772,945 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income/loss) Total shareholders' equity Total liabilities and shareholders' equity 50,779 14,966 (406) 65,339 323,888 $ 45,174 45,898 (584) 90,488 338,516 $ See accompanying Notes to Consolidated Financial Statements. Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) September 26, 2020 Years ended September 28, September 29, 2019 2018 $ 25,913 $ 20,289 Cash, cash equivalents and restricted cash, beginning balances $ 50,224 Operating activities: Net income 57,411 55,256 59,531 10,903 Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization Share-based compensation expense Deferred income tax benefit 11,056 6,829 12,547 6,068 5,340 (215) (97) (340) (652) (32,590) (444) Other 245 6,917 (127) 1,553 (289) 2,931 873 (9,588) (4,062) 2,081 8,916 (5,322) 828 (8,010) (423) 9,175 (3) 38,449 77,434 (1,923) (625) (4,700) 69,391 80,674 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-marketable securities Proceeds from non-marketable securities Other Cash generated by/(used in) investing activities (114,938) 69,918 50,473 (7,309) (1,524) (210) (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 92 (791) (4,289) 880 781 669 (3,634) (2,817) 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 Repayments of commercial paper, net Other Cash used in financing activities (14,081) (72,358) 16,091 (12,629) (963) (126) (86,820) (14,119) (66,897) 6,963 (8,805) (5,977) (105) (90,976) (2,527) (13,712) (72,738) 6,969 (6,500) (37) (87,876) Increase/(Decrease) in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash, ending balances (10,435) 39,789 24,311 50,224 5,624 25,913 $ $ $ 15,263 $ Supplemental cash flow disclosure: Cash paid for income taxes, net $ 9,501 $ Cash paid for interest $ 3,002 $ See accompanying Notes to Consolidated Financial Statements. 10,417 3,022 3,423 $ Apple Inc. I 2020 Form 10-K 135 Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) Years ended September 26, 2020 September 28, 2019 September 29, 2018 $ Net sales: Products Services Total net sales 220,747 $ 53,768 274,515 213,883 $ 46,291 260, 174 225,847 39,748 265,595 Cost of sales: Products Services Total cost of sales Gross margin 151,286 18,273 169,559 104,956 144,996 16,786 161.782 98,392 148,164 15,592 163,756 101,839 Operating expenses: Research and development Selling, general and administrative Total operating expenses 18,752 19,916 38,668 16,217 18,245 34,462 14,236 16,705 30,941 Operating income Other income/(expense), net Income before provision for income taxes Provision for income taxes Net income 66,288 803 67,091 9,680 57,411 $ 63,930 1,807 65,737 10,481 55,256 $ 70,898 2,005 72,903 13,372 59,531 $ Earnings per share: Basic $ 3.31 $ 2.99 $ 3.00 Diluted $ 3.28 $ 2.97 $ 2.98 Shares used in computing earnings per share: Basic Diluted 17,352,119 17,528,214 18,471,336 18,595,651 19,821,510 20,000,435 See accompanying Notes to Consolidated Financial Statements. Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 26, 2020 September 28, 2019 ASSETS: $ Current assets: Cash and cash equivalents Marketable securities Accounts receivable, net Inventories Vendor non-trade receivables Other current assets 38,016 $ 52,927 16,120 4,061 21,325 11,264 48,844 51,713 22,926 4,106 22,878 12,352 162,819 Total current assets 143,713 Non-current assets: Marketable securities Property, plant and equipment, net Other non-current assets Total non-current assets 100,887 36,766 42,522 180,175 323,888 $ 105,341 37,378 32,978 175,697 338,516 Total assets $ LIABILITIES AND SHAREHOLDERS' EQUITY: $ $ Current liabilities: Accounts payable Other current liabilities Deferred revenue Commercial paper Term debt Total current liabilities 42,296 42,684 6,643 4,996 8,773 105,392 46,236 37,720 5,522 5,980 10,260 105,718 Non-current liabilities: Term debt Other non-current liabilities Total non-current liabilities Total liabilities 98,667 54,490 153, 157 258,549 91,807 50,503 142,310 248,028 Commitments and contingencies Shareholders' equity: Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 16,976,763 and 17,772,945 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income/loss) Total shareholders' equity Total liabilities and shareholders' equity 50,779 14,966 (406) 65,339 323,888 $ 45,174 45,898 (584) 90,488 338,516 $ See accompanying Notes to Consolidated Financial Statements. Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) September 26, 2020 Years ended September 28, September 29, 2019 2018 $ 25,913 $ 20,289 Cash, cash equivalents and restricted cash, beginning balances $ 50,224 Operating activities: Net income 57,411 55,256 59,531 10,903 Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization Share-based compensation expense Deferred income tax benefit 11,056 6,829 12,547 6,068 5,340 (215) (97) (340) (652) (32,590) (444) Other 245 6,917 (127) 1,553 (289) 2,931 873 (9,588) (4,062) 2,081 8,916 (5,322) 828 (8,010) (423) 9,175 (3) 38,449 77,434 (1,923) (625) (4,700) 69,391 80,674 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-marketable securities Proceeds from non-marketable securities Other Cash generated by/(used in) investing activities (114,938) 69,918 50,473 (7,309) (1,524) (210) (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 92 (791) (4,289) 880 781 669 (3,634) (2,817) 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 Repayments of commercial paper, net Other Cash used in financing activities (14,081) (72,358) 16,091 (12,629) (963) (126) (86,820) (14,119) (66,897) 6,963 (8,805) (5,977) (105) (90,976) (2,527) (13,712) (72,738) 6,969 (6,500) (37) (87,876) Increase/(Decrease) in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash, ending balances (10,435) 39,789 24,311 50,224 5,624 25,913 $ $ $ 15,263 $ Supplemental cash flow disclosure: Cash paid for income taxes, net $ 9,501 $ Cash paid for interest $ 3,002 $ See accompanying Notes to Consolidated Financial Statements. 10,417 3,022 3,423 $ Apple Inc. I 2020 Form 10-K 135