Apple Inc. Apple Inc. designs, manufactures, and markets personal computers, mobile communication devices, and portable digital music and video players and sells a variety of related software, services, peripherals, and networking solutions. The Company sells its products worldwide through its online stores, its retail stores, its direct sales force, and third-party wholesalers, resellers, and value-added resellers. Your parents are considering investing in Apple Inc. common stock. They ask you, as an accounting expert, to make an analysis of the company for them. Apples financial statements and 10-K file are provided.

Question: (2) Make a 3-year trend analysis, using 2011 as the base year, of (1) net sales and (2) net income. Comment on the significance of the trend results. (3) What information outside the annual report may also be useful to your parents in making a decision about Apple?

CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands) September 28, 2013 September 29, 2012 $ $ 14,259 26,287 10,746 18,383 13,102 1,764 3,453 7,539 6,882 73,286 106,215 16,597 1,577 4,179 5,146 207,000 10,930 791 2,583 7,762 6,458 57,653 92,122 15,452 1,135 4,224 5,478 176,064 $ $ ASSETS: Current assets: Cash and cash equivalents Short-term marketable securities Accounts receivable, less allowances of $99 and $98, respectively Inventories Deferred tax assets Vendor non-trade receivables Other current assets Total current assets Long-term marketable securities Property, plant and equipment, net Goodwill Acquired intangible assets, net Other assets Total assets LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities: Accounts payable Accrued expenses Deferred revenue Total current liabilities Deferred revenue -non-current Long-term debt Other non-current liabilities Total liabilities Commitments and contingencies Shareholders' equity: Common stock, no par value; 1,800,000 shares authorized; 899,213 and 939,208 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income/(loss) Total shareholders' equity Total liabilities and shareholders' equity $ 22,367 13,856 7,435 43,658 2,625 16,960 20,208 83,451 21,175 11,414 5,953 38,542 2,648 0 16,664 57,854 19,764 104,256 (471) 123,549 207,000 16,422 101,289 499 118,210 176,064 $ $ See accompanying Notes to Consolidated Financial Statements. 2011 2013 $170,910 $ 37,037 2012 $156,508 $ 41,733 $108,249 $ 25,922 2010 $ 65,225 $ 14,013 2009 $ 42,905 $ 8,235 $ 40.03 $ 39.75 $ 11.40 $ 44.64 $ 44.15 $ 2.65 $ 28.05 $ 27.68 $ 0 $ $ $ 15.41 15.15 0 $ $ $ 9.22 9.08 0 Net sales Net income Earnings per share: Basic Diluted Cash dividends declared per share Shares used in computing earnings per share: Basic Diluted Total cash, cash equivalents and marketable securities Total assets Long-term debt Long-term obligations (a) Total liabilities Total shareholders' equity (a) Long-term obligations exclude non-current deferred revenue. 934,818 945,355 924,258 936,645 909,461 924,712 925,331 931,662 $146,761 $207,000 $ 16,960 $ 20,208 $ 83,451 $123,549 $121,251 $176,064 $ 0 $ 16,664 $ 57,854 $118,210 $ 81,570 $116,371 $ 0 $ 10,100 $ 39,756 $ 76,615 $ 51,011 $ 75,183 $ 0 $ 5,531 $ 27,392 $ 47,791 893,016 907,005 $ 33,992 $ 47,501 $ 0 $ 3,502 $ 15,861 $ 31,640