AA 17-1 Company Analysis LO A1, P1, P2 Use Apple's financial statements in Appendix A to answer the following. Required: 1. Using fiscal 2017 as the base year, compute trend percents for fiscal years 2017, 2018, and 2019 for total net sales, total cost of sales, operating Income, other Income (expense) net, provision for income taxes, and net income. 2. Compute common-size percents for fiscal years 2018 and 2019 for the following categories of assets: (a) total current assets; (b) property, plant and equipment, net, and accounts receivable, net. 3. Using current assets as a percent of total assets to measure liquidity, did Apple's asset makeup become more liquid or less liquid in 2019? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using fiscal 2017 as the base your compute trend percents for fiscal years 2017, 2018, and 2019 for total net sales, total cost of sales, operating income, (expense) net, provision for Income taxes, and net income. (Input all the values as positive numbers. Enter your answers in millions Round your percentag 1 decimal place) Finca 2017 Fiscal 2019 % Fiscal 2010 % % % Net Sales Cont of salon Operating income Other income (experte) Provision for income taxes Net Income X % % % % w % W X Required 2 > AA 17-1 Company Analysis LO A1, P1, P2 Use Apple's financial statements in Arpendix A to answer the following. Required: 1. Using fiscal 2017 as the base year, compute trend percents for fiscal years 2017 2018, and 2019 for total net sales, total cost of sales, operating Income, other income (expense) net, provision for income taxes, and net income, 2. Compute common-size percents for fiscal years 2018 and 2019 for the following categories of assets: (a) total current assets: (b) property, plant and equipment, net and accounts receivable, net. 3. Using current assets as a percent of total assets to measure liquidity, did Apple's asset makeup become more liquid or less liquid in 2019? Complete this question by entering your answers in the tabs below. Required 1 Requid 2 Required 3 Compute common in percents for fiscal years 2018 and 2019 for the following categories of ascets: total current asset (b) property, plant and equipment.net, and (c) Accounts receivable, net. (Enter your answers in millions Round your percentage answer to decimal place 2010 2010 Total current Property, plant and equipment ne Accounts receivable, nel Required 1 Required 3 > O APPLE September 29, 2018 5 25.913 3070 186 Apple Inc. CONSOLIDATED HALANCE SHEETS in millions, excepumber of res which are reflected in thousands and par value September 28, 2019 ASSETS Cure Cash Cash Mirescu concevable, et 4, Veldreeable 1239 | In arti 14 102.19 Men- Marcel 105.341 Property Othe Tokoncu 13.07 Tools 3316 2309 1307 3139 170799 47304 12,283 414156 108.735 LIABILITIES AND SHAROLDERS QUITY 162 37.720 SS. 33,527 Ale Other Defne Connect 3.90 11.64 7 11.929 HOSTI Total media NO Tim dhe Choc Tal con W. 91735 2014 14219 HO 24 Morkea se Property, planta mea. Other concurrent 37.373 13.975 7. 3516 17.799 400 22283 214.30 365.725 Total 5 LIABILITIES AND SHAREHOLDERS' EQUITY 5 Current liabilities Ashle Other Bities Defne Commercial paper Termde Total currenties Ne current bites Terms Other Boncurs Total Do-currities 52 37.730 5:53 5.900 10,30 105.718 754 115929 91.785 91. SOT 30,503 142.310 BEKON 14259 153T Comments Shareholde Commons and additional capital, 30.000 parv: 12.000.000 who 4443236 and 4754586 send and outstanding, respect Beide Acceder hensive Touch Tocal abilities and holders See Nors to Comedian 15.174 3.89 354) 40301 2.400 102-10 September 30, 2017 S 196,534 32,700 229,234 126,337 14,711 141.045 88,186 Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) Years ended September 28, 2019 September 29, 2018 Net sales Products 213.883 235.847 Services 46.291 39.748 Total act sales 260.174 265,595 Cost of sales: Products 144.996 148.164 Services 16,786 15.392 Total cost of sales 161,782 163,756 Gross margin 98.392 101.839 Operating experties Research and development 16,217 14.236 Selline and dinise 18245 16,705 Total operating expenses 34,462 10.941 Operating income 63,930 70,898 Other income (expense). net 1.802 2.005 Income before provision for income taxes 65737 72,003 Provision for income taxes 10,481 13.372 Net Income 55.256 59,331 Earings per share Basic 11.97 12.01 Diluted 11.89 11.91 Shares used in computing earning per shite Basic 4,617.834 4.935.377 Diluted 4.645013 3.300,00 11.581 15,261 26,842 61,14 2,745 66089 15.738 48,451 S 9.21 5.217.242 $251.692 See accompanying Notes to Consolidated Financial Statements 523 Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) Years ended September 28, 2019 September 29, 2018 September 30, 2017 Net income 55.2565 59,531 S 48,351 Other comprehensive income (loss): Change in foreign currency translation, net of tax (408) (525) 234 Change in unrealized gain losses on derivative instruments, net of taxe Change in fair value of derivatives (661) 1.315 Adjustment for net(gains) losses realized and included in not income 23 382 (1.477) Total change in unrealized gains/losses on derivative instruments (638) (162) Change in unrealized gins/losses on marketable securities, net of tax Change in fair value of marketable securities 3.802 (3,407 (782) Adjustment for net(gains) fosses realized and included in net income 25 Total change in unrealized pains/losses on marketablo securities 3.827 (3.406) (846) Total other comprehensive income (108) 2.781 (3.026) (784) Total comprehensive income 58.037 s 56.505 See accompanying Notes to Consolidated Financial Statement 905 September 30, 2017 128.249 31.251 555 (1468) 4.900 620 35.867 Apple Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In millions) Years ended September 28, 2019 September 29, 2018 Total shareholders' equity, beginning balances 107.147 134,017 Common stock and additional paid in capital Beginning balances 40,201 35,867 Common stock issued 781 669 Common stock withheld related to net share settlement of equity awards (2002) (1.778) Share-based compensation 6.194 5,443 Tux benefit from equity awards, including transfer pricing adjustments Ending balances 45,174 40,201 Retained earnings Beginning balances 70,400 98330 Net income 55,256 59.531 Dividends and dividend equivalent declared (14.129) (13.735) Common stock withheld related to net share settlement of equity awards (1.029) (948) Common Hock repurchased (67.101 (73.056) Cumulative effects of changes in accounting principles 2.501 278 Beding balances 45,893 70.000 Accumulated other comprensive income (ou) Beginning balances (3.454) (150) Other comprehensive income dow) 2.781 0.026) Cumulative effects of changes in accounting principles (278) Finding balances (584) (3.454) Toalhacholders guilty.coding bulances 90488 107,147 96364 18.351 (12.803) (581) 32,001) 9.30 61 (754) (150) 100 See accompanying Notes to Comolidited Financial Statements September 30, 2017 $ 20,484 48,351 10.157 4.840 5,966 (166) Other Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) Years ended September 28, 2019 September 29, 2018 Cash, cash equivalents and restricted cash, beginning balances 25913 20,289 Operating activities Net income 55.256 59,531 Adjustments to reconcile net income to cash generated by operating activities Depreciation and amortization 12.547 10.903 Share-based compensation expense 6,068 5.340 Deferred income tax expense (benefit (340) (32,590) (652) (444) Changes in operating assets and liabilities: Accounts receivable, net 245 (5,322) Inventories (289) 828 Vendor non-trade receivables 2931 (8,010) Other current and non-current assets 873 (423) Accounts payable (1.923) 9.175 Deferred revenue (625) Other current and non-current liabilities (4,700 38,449 Cash generated by operating activities 69.391 77.434 Investing activities Purchases of marketable securities (39630) (71,356) Proceeds from maturities of marketable securities 40,102 55,881 Proceeds from sales of marketable securities 56,988 47.838 Payments for acquisition of property, plant and equipment (10,495) (13,313) Payments made in connection with business acquisitions, net (624) (721) Purchases of non-marketable securities (1.001) (1.871) Proceeds from non-marketable securities 353 Other (1.078) (745) Cash generated by (used in) investing activities 45896 16,066 Financing activities Dragonfamiammanstock (2,093) (2.723) (4.254) (5,318) 8.966 (593) 1.092 64.225 (159.486) 31,775 94,564 (12.451) (329) (521) 126 (124) (46,446) 1634 555 (4.700 69,391 38.449 77.434 1,092 64.225 (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 (159.486) 31.775 94,564 (12.451) (329) (521) 126 (124) (46,446) 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 debt Proceeds from (Repayments of commercial paper, net Other Cash used in financing activities Increase (decrease) in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash, ending balances Supplemental cash flow disclosure Cash paid for income taxes, net Cash paid for interest 781 (2.817) (14.119) (66,897) 6,963 (8.805) (5,977) (105) (90,976) 24.311 50.224 (2.527) (13.712) (72,738) 6.969 (6.500) (37) S55 (1.874) (12,769) (32.900) 28.662 (3.500) 3,852 (87.876) 5,624 25.913 (17,974) (195) $ $ 20.289 15.263 3,423 $ S 10.417 3,022 $ s 11.591 2,092