Apie Inc CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) Years onded September 25, September 26, Soptomber 28 2021 2020 2019 Net sales: Products Services s 297,392 $ 68,425 220,747 $ 53,768 213,883 46,291 Total net sales 365,817 274,515 260,174 Cost of sales: Products 192.266 151,286 144,996 Services 20,715 18,273 16,786 Total cost of sales Gross margin 212,981 152,836 169,559 104,956 161,782 98,392 21,914 18,752 16,217 Operating expenses: Research and development Selling general and administrativo Total operating expenses 21,973 19,916 18,245 43,887 38,668 34.462 66.288 63,930 Operating income Other income/expenso), net 108,949 258 803 1,807 Income before provision for income taxes 109,207 67,091 65,737 Provision for income taxes 14,527 9,680 10,481 Net Income $ 94,680$ 57,4115 55,256 Earnings por share: Basic Diluted $ $ 5.67 $ 5.61 $ 3.31 5 3.28 $ 2.99 297 Apple the CONSOLIDATED BALANCE SHEETS (milions, aceptember of reach are lected by thomande und per valut) September 25 2021 September 26 2020 ASSETS $ 34,0405 27.809 30.016 52.927 26,278 16,120 Current Cash and chuiven Marble securit Accounts receivable, not Inventos Vanderron trade recebe Other current sete Total current 5.580 4051 25.228 21 325 14.551 11264 134.836 143,713 Non-current Markable secure 127 877 100.88 Property, plant and equipment, 30.40 300 48.849 12.522 Other non-current Total non-currents Totalets 210.106 351,0025 180,175 323 588 LIABILITIES AND SHAREHOLDERS' EQUITY Currentlab Accounts payable 54.703 5 200 Other current 4740 42.884 Deferred revenue 7,612 .643 Commercial poder 3.000 4.000 Termdett 9.012 3.3 Total Curabi 135.0 10592 Non-current Termdebt 100,100 38.00 Other non-current Total non-current 53 325 120 54.400 153 157 Total liabiti 2010 Comments and contingende Apple Inc Shareholders' equity Common stock and additional paid-in capital, 50.00001 par value 50,400,000 shares authorized: 16,425,786 and 16,076,763 share inued and outstanding, respectively Retnined earning Accumulated other comprehensive incomalous) Total shareholders' equilty 57 365 5,562 50,770 14,966 103 (406) 83,000 65,339 Total Rabilities and shareholders' equity $ 351,0025 323,888 Sno accompanying Noton to Consolidated Financial Statements. I Appleine Apple Inc. 2021 Form 10-K 31 CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (in million, copt per shore amounto) Yours ended September 26, September 25, September 28, Total shareholders equity, beginning balancen 36,339 $ 90.485 $ 107 147 Common stock and additional poldin capital Beginning balance Common stock laced 50,779 45.174 40.201 1.105 890 781 Common stock withheld related to not share soment of equity warde (2.627) (2.250) 12.002) Share-based compensation 8,100 8.975 8,194 57,365 50,779 45.174 Ending balances Retained earnings Beginning balances Not Income 14.068 94,580 45.898 57,415 70,400 55.258 Dividends and dividend equivalent declared (14431) (14.067) (14,129) Common stock whorlated to not whare settlement of equity awards 4,151) 1.804 11.029) (85,502) 072,516) (67.100 Common stock ropurchased Cumulative effects of changes in accounting principles Ending balances (136) 2.501 5.500 14.900 45.00 Accumulated other comprehensive Incomes) (406) (584) 0.454 500 Beginning balances Other comprehensive Income (los) Cumulative effects of changes in counting principles Ending balance 42 134 2.781 00 165 (406) (564) Total shareholders equity, ending balances 53.000 65.3305 90.466 Dividends and dividend equivalente declares por share or RSU 0.85$ 0.795 See accompanying Notes to Consolidated Financial Statement 0.75 Apple in 2021 Form 10-32 Notes to Consolidated Financial Statements Note 1 - Summary of Significant Accounting Policies Basis of Presentation and Preparation The consolidated financial statements include the accounts of Apple Inc. and its wholly owned subsidiario (collectively "Apple" or the Company). Intercompany accounts and transactions have been eliminated. In the opinion of the Company's management, the connolidated financial statements reflect all adjustments, which are normal and recurring in nature, neceway for fair financial statement presentation. The preparation of these consolidated financial statements and accompanying noto in conformity with U.S. generally accepted accounting principles requires management to make antimates and assumption that affect the amount reported. Actual results could diffoe motorially from those estimates. Certain prior period amounts in the consolidated financial statements and accompanying notes have been reclasified to conform to the current period's prosentation The Company's fiscal year is the 52 or 53-week period that ends on the last Saturday of September. An additional week is included in the first fiscal quarter every five or nix years to realign the Company'. fincal quarters with calendar quarter. The Company's fiscal years 2021, 2020 and 2019 spanned 52 wooks each. Unless otherwise stated, roforences to particular yours, quarters, months and periods ofer to the Company's focal years onded in September and the associated quarters, months and periods of those focal years. Recently Adopted Accounting Pronouncements Financial Instruments - Credit Loss All the beginning of the first quarter of 2021, the Company adopted the Financial Accounting Standards Board's (the "FASB") Accounting Standards Update CASU) No 2016-13, Financial Instruments - Credit Loos (Toplo 326) Moasurement of Crdi Losos on Financial instruments ("ASU 2016-13), which modifier the measurement of expected credit uses on certain financial instruments. The Company adopted ASU 2016-13 utilizing the modified retrospective transition method. The adoption of ASU 2016-13 did not have a material impact on the Company's condensed consolidated financial statements Advertising Conta Advertising costs are expenned as incurred and included in selling, general and administrative expenses Share-Based Compensation The Company generally measures share-based compensation based on the dosing price of the Company's common stock on the date of grant, and recognizes expense origine basis for testimoto of equity wards that will ultimately vent. Further information regarding sharbated compensation can be found in Note Benefit Plans Earnings Per Share The following table shows the computation of bank and diluted earnings par ahore for 2021, 2020 and 2010 (net income in millions and share in thousands 2021 2020 2019 Numerator Not income 1 $ 94,680 5 57411 $ 56.256 Denominator Wolghted average basic shares outstanding Effect of dilute securities 16.701.272 163,547 17,352,119 170.095 18.471,336 124,315 Weighted average diluted she 16,864,910 17.528.214 18.595,651 Basic camins per share Duted earrings per share $ $ 5.67 $ 331 S 32 5 50 $ 2.00 2.97 Apple Inc. 2021 Form 10-K 134 Apple Inc. The Company applies the treasury stock method to determine the dilutive effect of potentially dilutive securities. Potentially dilutive securities representing 62 million shares of common stock were excluded from the computation of diluted earnings per share for 2019 because their effect would have been antidilutive Cash Equivalents and Marketable Securities All highly liquid investments with maturities of three months or less at the date of purchase are classified as cash equivalents The Company's investments in marketable debt securities have been classified and accounted for as available for sale. The Company classifies its marketable debt securities as either short-term or long-term based on each instrument's underlying contractual maturity date. Unrealized gains and losses on marketablo debt securities classified as available for sale are recognized in other comprehensive income (loss) (OCM. The Company Investments in marketable equity securities are classified based on the nature of the securities and their availability for use in current operation. The Company's marketable equity securities are manured at falr value with guins and losses recognized in other Income (expense), net (TOISE") The cost of securities sold in determined using the specific identification method. Inventories Inventories are measured using the first-n, first-out method. Property, Plant and Equipment Depreciation on property, plant and equipment is recognized on a straight-line basis over the estimated useful lives of the assets, which for buildings in the lessor of 40 years or the remaining life of the building between one and five years for machinery and equipment Including product tooling and manufacturing process equipment and the shorter of lease term or useful life for leasehold improvements. Capitalized costs related to internal use software are amortized on a strwght-line basis over the estimated useful lives of the assets, which range from five to seven years. Depreciation and amortization expense on property and equipment was $0.5 billion, $2.7 billion and $11.3 billion during 2021 2020 and 2019, respectively Noncash investing activities involving property plant and equipment resulted in a net decrease to accounts payable and other current abilities of $20 billion during I ose yua thu NOM I HULIN 2 What is the amount of cash and cash equivalents on hand and in bank accounts that the company has? 2 points Fill in the blank Tipped book ences 3 What is the amount of goods the company acquired to resell to customers? 2 points Fill in the blank Skipped eBook Print References 4 What amount is owed to the company from customers? (Net) 4 points Fill in the blank Skipped eBook Print References 6 How much did their investment in Property, Plant and Equipment increase or decrease? points Fill in the blank Skloped eBook Print References 7 What is the amount of Total Current Assets? 4 points Fill in the blank Skipped eBook Print References Case 2: Apple year end 9/25/21 - Read All Instructions Seved 9 What is the total amount of labilities that are due within one year or operating cycle? 4 points Fill in the blank Skipped eBook Print References 10 What is the amount of total liabilities? 4 points Fill in the blank Skipped eBook Print References 12 How much did their Retained Earnings increase or decrease from the prior year? Be sure to use a comma, but no doller signor cents. 4 polis Fil in the blank Swed Print Then 14 What are the total net sales? 4 points Fill in the blank Skloped eBook Print References 15 What is the cost of products sold? 4 points Fill in the blank Skipped eBook Print References 16 What is the gross margin? " 4 points Fill in the blank Skipped eBook Print References 17 What is the amount of selling general and administrative expense? 4 points Fill in the blank Skloped eBook Print References 18 What is the amount of net earnings/income for the current year? 4 points Fill in the blank Siepped Book Print References 19 What is the dollar amount that net earningwincome has increased or decreased from the previous year? Remember use a comme, but no dotlar signer cents Dos Depec Far in the blank 20 What is the beginning Retained Earnings balance? 4 points Fill in the blank Skipped Book Print References use 2. Apple year end 25/21 - Read All instructions Yoga 0 All 21 What is the ending Retained Earnings balance? points Fill in the blank paddors eBook Print References 22 What is the amount of Dividends and dividend equivalents declared for the year end? (Do not type a parenthesis around the number) 2 in the bank 23 What is the amount of Common stock repurchased for the year? (Do not type a parenthesis around the number) 2 pot In the blank Sie be Meterences Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) Yoars onded September 25, September 26, September 28, ZUZT 2020 ZUTY Net sales Products Services 297,3925 68.425 220,747 $ 53,758 213,883 46,291 Total net sales 365,817 274,515 260,174 I Cost of sales: Products 192,266 151.288 144.996 Services 20,715 18,273 16,786 Total cost of sales Gross margin 212,981 152,836 169,559 104,956 161,782 98,392 Operating expenses: Research and development 21,914 18,752 16,217 Selling, general and administrative 21,973 19,916 18.245 Total operating expenses 43,887 38,668 34,462 Operating income 66.288 63,930 Other income/expense), not 108,949 258 803 1,807 Income before provision for Income taxes 109,207 67,091 65,737 Provision for income taxos 14,527 9,880 10,481 Net Income 94,680 $ 57,411 $ 55.256 Earnings per share Basia Diluted $ S 5.57 $ 5.51 $ 2.99 3.31 $ 3.28 $ 297 Shares used in computing earnings per share Basic Diluted 16.701.272 16,864,919 17.352.119 17,528,214 18,471,336 18,595,551 Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 25, September 26, 2021 2020 ASSETS: 34,940 $ 27,699 38,016 52.927 26,278 16,120 Current assets Cash and cash equivalents Marketable securities Accounts receivable, not Inventories Vendor non-trade receivables Other current assots 6,580 4,061 25,228 21,325 14,111 11,264 Total current assets 134,836 143,713 Non-current assets: Markotable securities 127.877 100,887 Property, plant and equipment, net 39,440 36,766 Other non-current assets 48,849 42,522 Total non-current assets Totalsts $ 216,166 351.0025 180,175 323,888 LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities Accounts payable $ 54,763 5 42.296 Other current liabilities 47.493 42.684 Deferred revenue 7,612 Commercial paper 6,843 5,000 Term debt 4,996 9,613 8,773 Total current abilities 125,481 105,392 Non-current liabilities Term debt Other non-current abilities 109,106 98,667 53,325 54.490 Apple Inc. Total non-current liabilities 162.431 153,157 Total liabilities 287,912 258,549 Commitments and contingencies 57,365 5,562 50.779 14,966 Shareholders' equity: Common stock and additional pald-in capital, 50.00001 par value: 50,400,000 shares authorized: 16,426,786 and 16,976,763 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, 163 (406) 63,090 65,339 $ 351,002 $ 323,888 Apple Inc. 2021 Form 10-K131 CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In milions, except per share amounts) Years ended September 25, September 26, September 28, ZUZT ZUZU ZUTS Total shareholders' equity, beginning balances 65,339 $ 90,488 $ 107,147 Common stock and additional paid-in capital Beginning balances 50,779 45,174 40.201 Common stock issued 1,105 880 781 Common stock withhold related to not share settlement of equity awards (2.627 (2.250) (2.002) Share-based compensation 8,100 6,975 6,194 57,365 50.779 45,174 Ending balances Retained earnings Beginning balances Not income 14,966 94,680 45,898 57411 70.400 55 256 Dividends and dividend equivalents declared (14,087) (14,129) (14,431) (4.151) (1.504) Common stock withheld related to not share settlement of equity awards Common stock repurchased (1.029) (85,502) (72.516) (67 101) Apple Inc. Cumulative effects of changes in accounting principles 2.501 Ending balances (136) 14,968 5.562 45,898 Accumulated other comprehensive Income (1055): (405) (584 Beginning balances Other comprehensive incoma/loss) Cumulative effects of changes in accounting principles Ending balances 569 42 136 (3,454) 2.781 89 163 (406) (584) Total shareholders equity, ending balances 63.090 S 55.339 $ 90.488 Total shareholders' equilty, ending balances 83,090 $ 65,3395 90,488 Dividends and dividend equivalents declared per share or RSU 0.85 $ See accompanying Notes to Consolidated Financial Statements 0.795 $ 0.75 Apple Inc. 2021 Form 10-K 32 Notes to consolidated Financial Statements Note 1 - Summary of Significant Accounting Policies Basis of Presentation and Preparation The consolidated financial statements include the accounts of Apple Inc. and its wholly owned subsidiaries (collectively "Apple" or the "Company). Intercompany accounts and transactions have been eliminated. In the opinion of the Company's management, the consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The preparation of these consolidated financial statements and accompanying notes in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ materially from those estimates. Certain prior period amounts in the consolidated financial statements and accompanying notes have been reclassified to conform to the current period's presentation. The Company's fiscal year is the 52- or 53-week period that ends on the last Saturday of September. An additional week is included in the first fiscal quarter every five or six years to realign the Company's fiscal quarters with calendar quarters. The Company's fiscal years 2021, 2020 and 2019 spanned 52 weeks each. Unless otherwise stated, references to particular years, quarters, months and periods refer to the Company's fiscal years ended in September and the associated quarters, months and periods of those fiscal years. Recently Adopted Accounting Pronouncements Financial Instruments - Credit Losses At the beginning of the first quarter of 2021, the Company adopted the Financial Accounting Standards Board's (the "FASB") Accounting Standards Update ("ASU) No. 2016-13, Financial instruments - Credit Losses (Topic 326): Measurement of Credit Apple Inc Lossos on Financial instruments ('ASU 2016-13"), which modifies the measurement of expected credit losses on certain financial Instruments. The Company adopted ASU 2016-13 utilizing the modified retrospective transition method. The adoption of ASU 2016-13 did not have a material impact on the Company's condensed consolidated financial statements Advertising Costs Advertising costs are expensed as incurred and included in seiling, general and administrative expensen, Share-Based Compensation The Company generally measures share based compensation based on the closing price of the Company's common stock on the date of grant and recognizes expense on a straight-line basis for its estimate of equity awards that will ultimately vost. Further Information regarding share-based compensation can be found in Note 9, "Benefit Plans Earnings Per Share The following table shows the computation of basic and diluted earnings per share for 2021, 2020 and 2019 (net income in millions and shares in thousands) 2021 2020 2019 Numerator Net Income $ 94.680 $ 57,411 S 55.256 Denominator Weighted average basic shares outstanding Effect of dilutive securities 16,701272 163,647 17,352,119 176,095 18,471,336 124,315 Weighted-average diluted shares 16,864,919 17,528,214 18,595,651 Basic earnings per share Diluted earnings per share $ S Apple Inc. 2021 Form 10-K 134 5.67$ 5.61 $ 3.31 $ 3.28 $ 2.99 2.97 Apple Inc The Company applies the treasury stock method to determine the dilutive effect of potentially dilutive securities Potentially dilutive securities representing 62 milion shares of common stock were excluded from the computation of diluted earnings per share for 2019 because their effect would have been antidilutive, Cash Equivalents and Marketable Securities All highly liquid Investments with maturities of three months or less at the date of purchase are classified as cash equivalents The Company's investments in marketable debt securities have been classified and accounted for as available for sale The Company classifies its marketable debt securities as either short-term or long-term based on each instrument's underlying contractual maturity date. Unrealized gains and losses on marketable debt securities classified as available for-sale are recognized in other comprehensive Income/(loss) (OCT) The Company's investments in marketable equity securities are classified based on the nature of the securities and their availability for use in current operations. The Company's marketable equity securities are measured at fair value with gains and losses recognized in other Income/expense), net ("OI&E), The cost of securities sold is determined using the specific identification method. Inventories Inventories are measured using the first-In, first-out method. Property. Plant and Equipment Depreciation on property, plant and equipment is recognized on a straight-line basis over the estimated useful lives of the assets, which for buildings is the lesser of 40 years or the remaining life of the building; between one and five years for machinery and equipment, including product tooling and manufacturing process equipment and the shorter of lease term or useful life for leasehold improvements. Capitalized costs related to internal-use software are amortized on a straight- line basis over the estimated useful lives of the assets, which range from five to seven years. Depreciation and amortization expense on property and equipment was $9.5 billion $9.7 billion and $11.3 billion during 2021 2020 and 2019, respectively Noncash investing activities involving property, plant and equipment resulted in a net decrease to accounts payable and other current liabilities of $2.9 billion during