AA 14-1 Company Analysis LO A1, A2 Use Apple's financial statements in Appendix A to answer the following. 1. Identify Apple's long-term debt as reported on its balance sheet at (a) September 28, 2019, and (b) September 29, 2018 2. Calculate the percentage change in long-term debt from September 29, 2018, to September 28, 2019. 3. If Apple's reported long-term debt continues on the current trend, do we expect total interest expense to increase or decrease? k ces Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Identify Apple's long-term debt as reported on its balance sheet at (a) September 28, 2019, and (b) September 29, 2018. (Enter your answers in millions of dollars.) September 28, September 29, 2019 2018 $ 105,718 $ 115,929 Long-term debt Checkr AA 14-1 Company Analysis LO A1, A2 Use Apple's financial statements in Appendix A to answer the following. 1. Identify Apple's long-term debt as reported on its balance sheet at (a) September 28, 2019, and (b) September 29, 2018. 2. Calculate the percentage change in long-term debt from September 29, 2018, to September 28, 2019. 3. If Apple's reported long-term debt continues on the current trend, do we expect total interest expense to increase or decrease? ok ences Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate the percentage change in long-term debt from September 29, 2018, to September 28, 2019. (Round your final answer to 1 decimal place. Percentage decreases should be indicated by a minus sign.) Percentage change in long-term debt % AA 14-1 Company Analysis LO A1, A2 Use Apple's financial statements in Appendix A to answer the following. 1. Identify Apple's long-term debt as reported on its balance sheet at (a) September 28, 2019, and (b) September 29, 2018 2. Calculate the percentage change in long-term debt from September 29, 2018, to September 28, 2019. 3. If Apple's reported long-term debt continues on the current trend, do we expect total interest expense to increase or decrease? es Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 If Apple's reported long-term debt continues on the current trend, do we expect total interest expense to increase or decrease? Total interest expense to increase or decrease? A September 28, 2019 September 29, 2018 ASSETS $ Current assets Cash and cash equivalents Marketable securities Accounts receivable, net Inventories Vendor non-trade receivables Other current assets Total current assets Non-current assets Marketable securities Property, plant and equipment, net Other non-current assets Total non-current assets Total assets 48,844 51,713 22,926 4,106 22,878 12,352 162,819 25,913 40,388 23.186 3,956 25,809 12,087 131,339 105,341 37,378 32,978 175,697 338,516 170.799 41,304 22.283 234.386 365,725 $ $ 365,725 $ 46,236 37,720 5,522 5,980 10,260 105,718 55,888 33,327 5,966 11,964 8.784 115,929 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ Other current liabilities Deferred revenue Commercial paper Term debt Total current liabilities Non-current liabilities Term debt Other non-current liabilities Total non-current liabilities Total liabilities Commitments and contingencies Shareholders' equity Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 4.443,236 and 4,754,986 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income (loss) Total shareholders' equity Total liabilities and shareholders' equity $ 91,807 50,503 142,310 248,028 93,735 48,914 142,649 258.578 45,174 45,898 (584) 90,488 338,516 40,201 70,400 (3.454) 107,147 365,725 $ See accompanying Notes to Consolidated Financial Statements. TINN September 29, 2018 Neptember 30 1 10,748 203.395 10,780 1 13,502 101,750 101,830 1 98.392 M Some AHSRSS wat nie 18,5 6 03.030 1.807 16,703 30.041 70,898 2005 72,003 13.372 59,331 bere taxes 6 1 10.81 55,256 43 11.07 12.01 Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) September 28, 2019 September 29, 2018 Years ended September 30, 2017 Net 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 144,996 16,786 161.782 148.164 15.592 163,756 101.839 126,337 14,711 141.048 88.186 98,392 14.236 11.581 Services Total cost of sales Gross margin Operating expenses: Research and development Selling, general and administrative Total operating expenses Operating income Other income (expense), net Income before provision for income taxes Provision for income taxes Net income 15.261 16.705 30.941 16,217 18,245 34,462 63,930 1,807 65,737 10,481 55,256 70.898 2.005 72.903 26,342 61.44 2745 44,089 15.738 48.351 13,372 59.531 11.97 12.01 9.27 $ Earnings per share: Basic Diluted Shares used in computing earnings per share: Basic Diluted 11.89 $ 11.91 9.21 4,617,834 4,648,913 4,955,377 5,000. 109 5.217.242 5.251,692 December 31, 2019 Google Inc. (Alphabet Inc.) CONSOLIDATED BALANCE SHEETS (In millions, except share amounts which are reflected in thousands, and par value per share amounts) December 31, 2018 Assets Current assets Cash and cash equivalents S 16,701 Marketable securities 92,439 Total cash, cash equivalents, and marketable securities 109,140 Accounts receivable, net of allowance of S729 and 5753 20,838 Income taxes receivable, nel 355 Inventory 1,107 Other current assets 4,236 Total current assets 135.676 Non-marketable investments 13.859 Deferred income taxes 737 737 Property and equipment, net 59,719 Operating lease assess 0 Intangible assets, net 2.220 Goodwill 17.888 Other non-current assets - 2,693 Total assets S 232.792 18,198 101,177 119,675 25.326 2,166 999 4,412 152.578 13.078 721 73,646 10,941 1.979 20.624 2,342 275.909 S S 4,378 6,839 16,958 4,592 1.784 69 5.561 8,495 23,067 5.916 1,908 274 45,221 GOOGLE 34,620 4.554 4,012 396 11,327 1.264 0 Liabilities and Stockholders' Equity Current liabilities Accounts payable Accrued compensation and benefits Accrued expenses and other current liabilities Accrued revenue share Deferred revenue Income taxes payable net Total current liabilities Long-term debe Deferred revenue, non-current Income taxes payable, non-current Deferred income taxes Operating lease liabilities Other long-term liabilities Total liabilities Commitments and Contingencies Stockholders' equity Convertible preferred stock, S0.001 par value per share, 100,000 shares authorized; no shares issued and outstanding Class A and Class B common stock, and Class C capital stock and additional paid-in capital, $0.001 par value per share: 15,000,000 shares authorized (Class A 9,000,000. Class B 3,000,000, Class C 3,000,000): 695.556 (Class A 299,242. Class B 46,636. Class 349,678) and 688,335 (Class A 299,828, Class B 46,441. Class C 342,066) shares issued and outstanding Accumulated other comprehensive loss Retained earnings Total stockholders' equity 358 9.885 1,701 10,214 2.534 74,467 3.545 55,164 0 0 45.049 (2.306) 134.885 177.628 50,552 (1.232) 152,122 201,442 GOO 4,592 1,784 69 34,620 4,012 396 11,327 1.264 0 3,545 55,164 5,916 1.908 274 45,221 4,554 358 9,885 1.701 10.214 2.534 74.467 Deterred revenue Income taxes payable. net Total current liabilities Long-term debt Deferred revenue, non-current Income taxes payable, non-current Deferred income taxes Operating lease liabilities Other long-term liabilities Total liabilities Commitments and Contingencies Stockholders' equity Convertible preferred stock, $0.001 par value per share, 100,000 shares authorized; no shares issued and outstanding Class A and Class B common stock, and Class C capital stock and additional paid-in capital, $0.001 par value per share: 15,000,000 shares authorized (Class A 9,000,000, Class B 3,000,000, Class C 3,000,000): 695.556 (Class A 299,242. Class B 46,636, Class C 349,678) and 688,335 (Class A 299,828, Class B 46,441, Class C 342.066) shares issued and outstanding Accumulated other comprehensive loss Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 0 0 45,049 (2,306) 134.885 177,628 232,792 50,552 (1,232) 152,122 201,442 275,909 $ S Google is part of Alphabet, but we loosely refer to Alphabet as "Google" because of its global familiarity and because Google provides 99% of Alphabet's $161,857 billion in revenues. See accompanying notes