Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) September 30, 2017 48,351 Years ended September 24, 2016 45,687 September 26. 2015 53,394 $ Net income Other comprehensive income/loss): Change in foreign currency translation, net of tax effects of $(77), $8 and $201, respectively 224 75 (411) 1,315 2,905 Change in unrealized gains/losses on derivative instruments: Change in fair value of derivatives, net of tax benefit/(expense) of $(478), $(7) and $(441), respectively Adjustment for net (gains) losses realized and included in net income, net of tax expense/(benefit) of $475, $131 and $630, respectively Total change in unrealized gains/losses on derivative instruments, net of tax (1,477) (162) (741) (3,497) (592) (734) (782) 1,582 Change in unrealized gains/losses on marketable securities: Change in fair value of marketable securities, net of tax benefit/(expense) of $425, $(863) and $264, respectively Adjustment for net (gains)/losses realized and included in net income, net of tax expense/(benefit) of $35, $(31) and $(32), respectively Total change in unrealized gains/losses on marketable securities, net of tax (483) (64) 56 1,638 59 (424) (846) Total other comprehensive income/(loss) Total comprehensive income S (784) 47,567 979 46,666 (1,427) 51,967 $ $ See accompanying Notes to Consolidated Financial Statements. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 30, 2017 September 24, 2016 ASSETS: $ $ Current assets: Cash and cash equivalents Short-term marketable securities Accounts receivable, less allowances of $58 and $53, respectively Inventories Vendor non-trade receivables Other current assets Total current assets 20,289 53,892 17,874 4,855 17,799 13,936 128,645 20,484 46,671 15,754 2,132 13,545 8,283 106,869 Long-term marketable securities Property, plant and equipment, net Goodwill Acquired intangible assets, net Other non-current assets Total assets 194,714 33,783 5,717 2,298 10,162 375,319 170,430 27,010 5,414 3,206 8,757 321,686 $ LIABILITIES AND SHAREHOLDERS' EQUITY: $ Current liabilities: Accounts payable Accrued expenses Deferred revenue Commercial paper Current portion of long-term debt Total current liabilities 49,049 25,744 7,548 11,977 6,496 100,814 37,294 22,027 8,080 8,105 3,500 79,006 Deferred revenue, non-current Long-term debt Other non-current liabilities Total liabilities 2,836 97,207 40,415 241,272 2,930 75,427 36,074 193,437 Commitments and contingencies Shareholders' equity: Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 5,126,201 and 5,336,166 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income/(loss) Total shareholders' equity Total liabilities and shareholders' equity 35,867 98,330 (150) 134,047 375,319 31,251 96,364 634 128,249 321,686 $ $ Apple Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In millions, except number of shares which are reflected in thousands) Common Stock and Additional Paid-In Capital Shares 5,866,161 Amount 23,313 Accumulated Other Comprehensive Income/(Loss) 1,082 $ Retained Earnings 87,152 53,394 $ - (1,427) Total Shareholders' Equity $ 111,547 53,394 (1,427) (11,627) (36,026) 3,586 (11,627) (36,026) (325,032) 3,586 37,624 (231) (609) (840) 748 748 27,416 5,578,753 92,284 45,687 119,355 45,687 979 (12,188) (29,000) 4,262 (12,188) (29,000) Balances as of September 27, 2014 Net income Other comprehensive income/(loss) Dividends and dividend equivalents declared Repurchase of common stock Share-based compensation Common stock issued, net of shares withheld for employee taxes Tax benefit from equity awards, including transfer pricing adjustments Balances as of September 26, 2015 Net income Other comprehensive income/(loss) Dividends and dividend equivalents declared Repurchase of common stock Share-based compensation Common stock issued, net of shares withheld for employee taxes Tax benefit from equity awards, including transfer pricing adjustments Balances as of September 24, 2016 Net income Other comprehensive income/(loss) Dividends and dividend equivalents declared Repurchase of common stock Share-based compensation Common stock issued, net of shares withheld for employee taxes Tax benefit from equity awards, including transfer pricing adjustments Balances as of September 30, 2017 (279,609) 4,262 37,022 (806) (419) (1,225) 379 31,251 5,336,166 634 96,364 48,351 379 128,249 48,351 (784) (12,803) (33,001) 4,909 (12,803) (33,001) (246,496) - 4,909 TILL 36,531 (913) (581) (1,494) 620 620 134,047 5,126,201 $ 35,867 $ 98,330 $ (150) $ See accompanying Notes to Consolidated Financial Statements. Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) September 30, 2017 20,484 Years ended September 24, 2016 21.120 September 26, 2015 Cash and cash equivalents, beginning of the year $ 13.844 48,351 45,687 53,394 Operating activities: Net income Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization Share-based compensation expense Deferred income tax expense Other Changes in operating assets and liabilities: Accounts receivable, net Inventories Vendor non-trade receivables Other current and non-current assets Accounts payable 10,157 4,840 5,966 (166) 10,505 4,210 4,938 486 11,257 3,586 1,382 385 417 (2,093) (2,723) (4.254) (5,318) 9,618 (626) (154) 63,598 527 217 (51) 1,055 1,837 (1,554) (2,033) 65,824 (238) (3,735) (283) 5,001 1,042 Deferred revenue 9,058 81,266 Other current and non-current liabilities Cash generated by operating activities Investing activities: Purchases of marketable securities Proceeds from maturities of marketable securities Proceeds from sales of marketable securities Payments made in connection with business acquisitions, net Payments for acquisition of property, plant and equipment Payments for acquisition of intangible assets Payments for strategic investments, net (159,486) 31,775 94,564 (329) (12,451) (344) (395) 220 (46,446) (142,428) 21,258 90,536 (297) (12,734) (814) (1,388) (110) (45.977) (166,402) 14,538 107,447 (343) (11,247) (241) Other (26) (56.274) Cash used in investing activities Financing activities: Proceeds from issuance of common stock Excess tax benefits from equity awards Payments for taxes related to net share settlement of equity awards Payments for dividends and dividend equivalents Repurchases of common stock Proceeds from issuance of term debt, net Repayments of term debt Change in commercial paper, net Cash used in financing activities Increase/(Decrease) in cash and cash equivalents Cash and cash equivalents, end of the year 555 627 (1,874) (12,769) (32,900) 28,662 (3,500) 3,852 (17.347) (195) 20,289 495 407 (1,570) (12,150) (29,722) 24,954 (2,500) (397) (20,483) 543 749 (1.499) (11,561) (35,253) 27.114 2,191 (17.716) 7,276 21,120 1636) $ 20,484 $ Supplemental cash flow disclosure: Cash paid for income taxes, net Cash paid for interest 11,591 2,092 See accompanying Notes to Consolidated Financial Statements. $ $ 10,444 1,316 $ $ 13,252 514 CT1.1 The financial statements of Apple Inc. are presented in Appendix A. Instructions Refer to Apple's financial statements and answer the following questions. a. What were Apple's total assets at September 30, 2017? At September 24, 2016? b. How much cash (and cash equivalents) did Apple have on September 30, 2017? c. What amount of accounts payable did Apple report on September 30, 2017? On September 24, 2016? d. What were Apple's net sales in the year ending September 30, 2017? In the year ending September 24, 2016? In the year ending September 26, 2015? e. What is the amount of the change in Apple's net income from 2016 to 2017