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

All information given