Annual Cash Flow Statement

Fiscal Year End for Apple Inc. falls in the month of September.

All data in Millions except Per Share data.

Cash Flow From Operations, Investments & Financial Activities

9/30/2019 9/30/2018 9/30/2017 9/30/2016 9/30/2015

Cash Flow From Operations, Investments & Financial

Activities

Net Income (Loss) 55,256.00 59, 531.00 48,351.00 45,687.00 53,394.00

Depreciation/Amortization & Depletion 12,547.00 10,903.00 10,157.00 10,505.00 11,257.00

Net Change from Assets/Liabilities -3,488.00 34,694.00 -5,550.00 484.00 11,647.00

Net Cash from Discontinued Operations 0.00 0.00 0.00 0.00 0.00

Other Operating Activities 5,076.00 -27,694.00 10,640.00 9,148.00 4,968.00

Net Cash From Operating Activities 69,391.00 77,434.00 63,598.00 65,824.00 81,266.00

Property & Equipment -10,495.00 -13,313.00 -12,451.00 -12,734.00 -11,247.00

Acquisition/ Disposition of Subsidiaries -624.00 0.00 -329.00 -297.00 -343.00

Investments 58,093.00 30,845.00 -33,542.00 -32,022.00 -44,417.00

Other Investing Activities -1,078.00 -1,466.00 -124.00 -924.00 -267.00

Net Cash from Investing Activities 45,896.00 16,066.00 -46,446.00 -45,977.00 -56,274.00

Uses of Funds

9/30/2019 9/30/2018 9/30/2017 9/30/2016 9/30/2015

Issuance (Repurchase) of Capital Stock -66,116.00 -74,596.00 -32,345.00 -29,227.00 -34,710.00

Issuance (Repayment) of Debt -1,842.00 469.00 25,162.00 22,454.00 27,114.00

Increase (Decrease) Short-Term Debt -5,977.00 -37.00 3,852.00 -397.00 2,191.00

Payment of Dividends & Other Distributions -14,119.00 -13,712.00 -12,769.00 -12,150.00 -11,561.00

Other Financing Activities -2,922.00 0.00 -1,247.00 -1,163.00 -750.00

Net Cash from Financing Activities -90,976.00 -87,876.00 -17,347.00 -20,483.00 -17,716.00

Effect of Exchange Rate Changes 0.00 0.00 0.00 0.00 0.00

Net Change In Cash & Equivalents 24,311.00 5,624.00 -195.00 -636.00 7,276.00

Cash at Beginning of Period 25,913.00 20,289.00 20,484.00 21,120.00 13,844.00

Cash at End of Period 50,224.00 25,913.00 20,289.00 20,484.00 21,120.00

Diluted Net EPS 11.89 11.91 9.21 8.31 9.22

Balance Sheet Fiscal Year End for Apple Inc. falls in the month of September.

All items in Millions except Per Share data.

9/30/2019 9/30/2018 9/30/2017 9/30/2016 9/30/2015

Assets

Cash & Equivalents 100,557 66,301 74,181 67,155 41,601

Receivables 45,804 48,995 35,673 29,299 30,343

Notes Receivable 0 0 0 0 0

Inventories 4,106 3,956 4,855 2,132 2,349

Other Current Assets 12,352 12,087 13,936 8,283 15,085

Total Current Assets 162,819 131,339 128,645 106,869 89,378

Net Property & Equipment 37,378 41,304 33,783 27,010 22,471

Investments & Advances 105,341 170,799 194,714 170,430 164,065

Other Non-Current Assets 0 0 0 0 0

Deferred Charges 0 0 0 0 0

Intangibles 0 0 8,015 8,620 9,009

Deposits & Other Assets 32,978 22,283 10,162 8,757 5,556

Total Assets 338,516 365,725 375,319 321,686 290,479

Liabilities & Shareholders Equity 9/30/2019 9/30/2018 9/30/2017 9/30/2016 9/30/2015

Notes Payable 0 0 0 0 0

Accounts Payable 46,236 55,888 49,049 37,294 35,490

Current Portion Long-Term Debt 16,240 20,748 18,473 11,605 10,999

Current Portion Capital Leases 0 0 0 0 0

Accrued Expenses 0 0 25,744 22,027 25,181

Income Taxes Payable 0 0 0 0 0

Other Current Liabilities 43,242 40,230 7,548 8,080 8,940

Total Current Liabilities 105,718 116,866 100,814 79,006 80,610

Mortgages 0 0 0 0 0

Deferred Taxes/Income 0 2,797 2,836 2,930 3,624

Convertible Debt 0 0 0 0 0

Long-Term Debt 91,807 93,735 97,207 75,427 53,463

Non-Current Capital Leases 0 0 0 0 0

Other Non-Current Liabilities 50,503 45,180 40,415 36,074 33,427

Minority Interest (Liabilities) 0 0 0 0 0

Total Liabilities 248,028 258,578 241,272 193,437 171,124

Shareholders Equity 9/30/2019 9/30/2018 9/30/2017 9/30/2016 9/30/2015

Preferred Stock 0 0 0 0 0

Common Stock (Par) 45,174 40,201 35,867 31,251 27,416

Capital Surplus 0 0 0 0 0

Retained Earnings 45,898 70,400 98,330 96,364 92,284

Other Equity -584 -3,454 -150 634 -345

Treasury Stock 0 0 0 0 0

Total Shareholder's Equity 90,488 107,147 134,047 128,249 119,355

Total Liabilities & Shareholder's Equity 338,516 365,725 375,319 321,686 290,479

Total Common Equity 90,488 107,147 134,047 128,249 119,355

Shares Outstanding 4,443.20 4,745.40 5,165.20 5,388.40 5,702.70

Book Value Per Share 20.37 22.58 25.95 23.80 20.93

Apple Inc. has some attractive investment opportunities that it is considering. The capital budgeting process has been completed and found that these projects have a positive NPV and are desirable. Apple Inc. must raise financing for the projects in the amount equal to 5% of the current level of its total assets. these funds can come from a number of sources: operations, short-term debt, long-term debt (new bond issues), or equity (new stock issues).

where should funds for these projects come from based on the knowledge of Apple Inc. and the knowledge of the current state of the economy (i.e., level of interest rates, state of the stock market, future prospects for the economy/firm).

The analysis should answer the following questions:

1. How much must Apple Inc. raise for the investments to be undertaken?
2. where the funds should come from? Provide analysis for the following areas:

• Current capital structure of the Apple, specifically, cite how some of the ratios calculated in Part II will influence decision.
• Federal Reserve policy and interest rates, meaning what are current borrowing interest rates and what direction is the trend going in the near future?
• Stock price and state of the stock market, meaning are current stock prices high? Low? How could a Apple Inc.'s financing choice(s) be impacted?
• Working capital policy
• Profit/loss situation and operating cash flows