Apple Inc.

CONSOLIDATED BALANCE SHEETS

$($In millions, except number of shares, which are reflected in thousands, and par value$)$ Analysis of Liabilities

Current Liabilities:

$1)$ In the most recent fiscal year, what is the company's largest current liability?

$2)$ What current liability has increased the most since last year?

$3)$ What current liability has decreased the most since last year?

$4)$ Provide your answers in dollar amounts and percentages.

Payables:

$1)$ Compute the accounts payable turnover ratio for the last two years.

$2)$ Does the company report any notes payable?

$3)$ If so$,$ is the interest rate on the notes payable reported in the footnotes?

$4)$ What does the interest rate tell you about the risk of loaning funds to the company?

Contingent Liabilities:

$1)$ Does the company report any contingent Liabilities on the balance sheet or in the

footnotes?

$2)$ If so$,$ what does the way the company reports its contingent liabilities tell you about

management's beliefs about probable payment?

Working Capital:

$1)$ What is the company's working capital for the last two years?

$2)$ Any concerns?

Long Term Liabilities:

$1)$ In the most recent fiscal year, what is the company's largest long$-$term liability? $($Provide

your answers in $ and $\%.)$

$2)$ What long$-$term liability has increased the most since last year? $($Provide your answers in

$ and $\%.)$

$3)$ What long$-$term liability has decreased the most since last year? $($Provide your answers

in $ and $\%.)$

$4)$ Has the company issued any long$-$term debt, either bonds or notes? If so$,$ read the

footnote and list any unusual features $($e$.$g$.,$ callable, convertible, secured by specific

collateral$).$

$5)$ If the company issued any bond securities $($which may be referred to as "notes" in the

footnotes$),$ were they issued at par, a premium, or a discount? If they were issued at a

premium or discount, does the company use the straight$-$line or effective$-$ interest

amortization method?

Ratio:

$1)$ What does the debt$-$to$-$equity ratio measure in general?

a$.$ Compute the ratio for the company for the last three years?

b$.$ What do your results suggest about the company?

c$.$ If available, find the industry ratio for the most recent year, compare it to your

results, and discuss why you believe the company differs from the industry.

$2)$ What does the times interest earned ratio measure in general?

a$.$ Compute the ratio for the company for the last three years. If interest expense is

not separately disclosed, you will not be able to compute the ratio. If so$,$ state

why you think it is not separately disclosed.

b$.$ What do your results suggest about the company?

c$.$ If available, find the industry ratio for the most recent year, compare it to your

results, and discuss why you believe the company differs from or is similar to the

industry ratio.