A high percentage of Americans own stock in corporations. As a shareholder in a corporation, you will receive an annual report. One of the goals of this course is for you to learn how to navigate your way around an annual report. The financial statements of Apple Inc. are presented in Appendix A. Instructions for accessing and using the companys complete annual report, including the notes to the financial statements, are also provided in Appendix A. Click here to view Appendix A. (Included in question) Use Apples 2018 annual report (see Appendix A) to answer the following questions.
What was the amount of Apple's earnings per share in 2018? (Round answers to 2 decimal places, eg. 52.75.) Basic Earnings per Share $ Diluted Earnings per Share $ What were net sales in 2018? (Enter answer in millions.) Net Sales $ million How much cash did Apple spend on capital expenditures in 2018? (Enter answer in millions.) Capital Expenditures $ million What were the proceeds from issuance of common stock in 2018? (Enter answer in millions.) Proceeds from issuance of common stock were $ million in 2018 A-2 APPENDIX A Specimen Financial Statements: Apple Inc. Apple Inc. Consolidated Statements of Operations (in millions, except number of shares which are reflected in thousands and per share amounts) Years ended September 29, September 30, September 24, 2018 2017 2016 $ 265,595 $ 229,234 $ 215,639 163,756 141,048 131,376 101,839 88,186 84,263 Net sales Cost of sales Gross margin Operating expenses: Research and development Selling, general and administrative Total operating expenses 14,236 16,705 30,941 11,581 15,261 26,842 10,045 14,194 24,239 Operating income Other income/expense), net Income before provision for income taxes Provision for income taxes Net income 70,898 2,005 72,903 13,372 $ 59,531 61,344 2,745 64,089 15,738 $ 48,351 60,024 1,348 61,372 15,685 $ 45,687 Earnings per share: Basic Diluted 8.35 $ 12.01 $ 11.91 $ 9.27 $ 9.21 $ $ 8.31 Shares used in computing earnings per share: Basic Diluted 4,955,377 5,000,109 5,217,242 5,251,692 5,470,820 5,500,281 See accompanying Notes to Consolidated Financial Statements. PPENDIX A Specimen Financial Statements: Apple Inc. Apple Inc. Consolidated Statements of Comprehensive Income (in millions) September 29, 2018 $59,531 Years ended September 30, 2017 $48,351 September 24, 2016 $45,687 Net income Other comprehensive income/(loss): Change in foreign currency translation, net of tax effects of $(1), $(77) and $8, respectively (525) 224 75 523 1,315 7 Change in unrealized gains/losses on derivative instruments: Change in fair value of derivatives, net of tax benefit/(expense) of $(149), $(478) and $(7), respectively Adjustment for net (gains)/losses realized and included in net income, net of tax expense/(benefit) of $(104), $475 and $131, respectively Total change in unrealized gains/losses on derivative instruments, net of tax 382 (1,477) (741) 905 (162) (734) (3,407) (782) 1,582 Change in unrealized gains/losses on marketable securities: Change in fair value of marketable securities, net of tax benefit/ (expense) of $1,156, $425 and $(863), respectively Adjustment for net (gains)/losses realized and included in net income, net of tax expense/(benefit) of $21, $35 and $(31), respectively Total change in unrealized gains/losses on marketable securities, net of tax (64) 56 (3,406) (846) 1,638 979 Total other comprehensive income/loss) (3,026) Total comprehensive income $56,505 See accompanying Notes to Consolidated Financial Statements. (784) $47,567 $46,666 September 30, 2017 Apple Inc. Consolidated Balance Sheets (in millions, except number of shares which are reflected in thousands and par value) September 29, 2018 ASSETS: Current assets: Cash and cash equivalents $ 25,913 Marketable securities 40,388 Accounts receivable, net 23,186 Inventories 3,956 Vendor non-trade receivables 25,809 Other current assets 12,087 Total current assets 131,339 $ 20.289 53,892 17,874 4,855 17.799 13,936 128,645 Non-current assets: Marketable securities Property, plant and equipment, net Other non-current assets Total non-current assets Total assets 170,799 41,304 22.283 234,386 $365,725 194,714 33,783 18,177 246,674 $375,319 LIABILITIES AND SHAREHOLDERS' EQUITY: $ 44,242 30.551 Current liabilities: Accounts payable Other current liabilities Deferred revenue Commercial paper Term debt Total current liabilities $ 55.888 32,687 7,543 11,964 8.784 116,866 7.548 11.977 6,496 100,814 Non-current liabilities: Deferred revenue Term debt Other non-current liabilities Total non-current liabilities Total liabilities 2,797 93.735 45.180 2.836 97.207 40,415 140,458 241,272 141.712 258,578 Commitments and contingencies Shareholders' equity: Common stock and additional paid-in capital, 80.00001 par value: 12,600,000 shares authorized; 4,754,986 and 5,126,201 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income/(loss) Total shareholders' equity Total liabilities and shareholders' equity See accompanying Notes to Consolidated Financial Statements. 40,201 70,400 (3.454) 107,147 $365,725 35,867 98,330 (150) 134,047 $375,319 979 379 634 Apple Inc. Consolidated Statements of Shareholders' Equity (in millions, except number of shares which are reflected in thousands and per share amounts) Accumulated Common Stock and Other Additional Paid-In Capital Retained Comprehensive Total Sharehold Shares Amount Earnings Income/(Loss) Equity Balances as of September 26, 2015 5,578,753 $27,416 $92,284 $ (345) $119,355 Net income 45,687 45,687 Other comprehensive income (bass) 979 Dividends and dividend equivalents declared at $2.18 per share or RSU (12,188) (12.188) Repurchase of common stock (279,609) (29,000) (29,000) Share-based compensation 4.262 Common stock issued, net of shares withheld for employee taxes 37,022 (806) (419) (1.225) Tax benefit from equity awards, including transfer pricing adjustments 379 Balances as of September 24, 2016 5.336,166 31.251 96,364 128.249 Net income 48,351 48,351 Other comprehensive income/(Loss) (784) (784) Dividends and dividend equivalents declared at $2.40 per share or RSU (12,803) (12,803) Repurchase of common stock (246,496) (33,001) (33.001) Share-based compensation 4,909 4.909 Common stock issued, net of shares withheld for employee taxes 36,531 (913) (581) (1.494) Tax benefit from equity awards, including transfer pricing adjustments 620 620 Balances as of September 30, 2017 5.126,201 35.867 98.330 (150) 134.047 Cumulative effect of change in accounting principle 278 (278) Net income 59,531 59,531 Other comprehensive income/(loss) (3.026) (3.026) Dividends and dividend equivalents declared at $2.72 per share or RSU (13,735) (13.735) Repurchase of common stock (405,549) (73,056) (73.056) Share-based compensation 5,443 5.443 Common stock issued, net of shares withheld for employee taxes 34,334 (1.109) (948) (2,057) Balances as of September 29, 2018 4,754,986 $40,201 $(3.454) $107.147 - ' 11 11 $70,400 See accompanying Notes to Consolidated Financial Statements. Apple Inc. Consolidated Statements of Cash Flows (in millions) September 29, 2018 Years ended September 30, 2017 September 24, 2016 $20,289 $20,484 $21.120 59,531 48,351 45,687 10,903 5,340 (32,590) 10,157 4,840 5,966 (166) 10,505 4.210 4,938 486 527 (5.322) 828 (8,010) (423) 9,175 217 (51) (2,093) (2.723) (4.254) (5.318) 8,966 (626) 1,125 64,225 1,055 2.117 (1,554) (1,906 66.231 38,490 77.434 Cash and cash equivalents, beginning of the year 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-marketable 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 debe Change in commercial paper, net Cash used in financing activities Increase/(Decrease) in cash and cash equivalents Cash and cash equivalents, end of the year Supplemental cash flow disclosure Cash paid for income taxes, net Cash paid for interest (71.356) 55,881 47,838 (13,313) (721) (1.871) 353 (745) (159,486) 31.775 94,564 (12,451) (329) (521) 126 (124) (46,446) (142,428) 21.258 90,536 (12,734) (297) (1,388) (924) 16,066 (45.977 669 (2,527) (13,712) (72,738) 6,969 (6,500) (37) (87.876) 5,624 S25,913 555 (1,874) (12,769) (32,900) 28,662 (3.500) 3.852 (17,974) 495 (1,570) (12.150) (29,722) 24.954 (2,500) (397) (20,890) (636) $20.484 (195) $20.289 $10,417 S11,591 $10.444 $ 1,316 $ 3.022 $ 2,092 Not to ancial Statemente
