Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) September 28, 2019 Years ended September 29, 2018 September 30, 2017 $ $ Net sales: Products Services Total net sales 213,883 $ 46,291 260,174 225.847 39,748 265,595 196,534 32,700 229,234 Cost of sales: Products Services Total cost of sales Gross margin 144.996 16,786 161,782 98,392 148,164 15,592 163,756 101,839 126,337 14.711 141,048 88,186 Operating expenses: Research and development Selling, general and administrative Total operating expenses 16,217 18.245 34,462 14.236 16,705 30,941 11,581 15.261 26,842 Operating income Other incomal(expense), net Income before provision for Income taxes Provision for income taxes Net Income 63,930 1,807 65.737 10,481 55,256 70,898 2,005 72,903 13,372 59,531 61,344 2,745 64,089 15,738 48,351 $ $ $ Earnings per share Basic Diluted 11.97 11.89 $ $ 12.01 11.91 s $ 9.27 9.21 Shares used in computing earnings per share: Basic Diluted 4,617,834 4,648,913 4,955,377 5,000, 109 5.217.242 5,251,692 See accompanying Notes to Consolidated Financial Statements. Apple Inc. 2019 Form 10-K | 29 September 28, 2019 September 23, 2018 ASSETS: $ $ Current assets: Cash and cash equivalents Marketable securities Accounts receivable, net Inventories Vendor non-trade receivables Other current assets Total current assets 48,844 51,713 22,926 4,106 22,878 12,352 162,819 25.913 40,388 23,186 3,956 25,809 12,087 131,339 Non-current assets: Marketable securities Property, plant and equipment, net Other non-current assets Total non-current assets Total assets 105,341 37,378 32,978 175,697 338,516 $ 170,799 41,304 22,283 234,386 365,725 $ LIABILITIES AND SHAREHOLDERS' EQUITY: $ Current liabilities: Accounts payable Other current liabilities Deferred revenue Commercial paper Term debt Total current liabilities 46.236 37.720 5,522 5,980 10,260 105,718 55,888 33,327 5,966 11,064 8,784 115,929 Non-current liabilities: Term debt Other non-current liabilities Total non-current liabilities Total liabilities 91,807 50,503 142,310 248,028 93.735 48,914 142,649 258,578 Commitments and contingencies Shareholders' equity Common stock and additional paid-in capital, S0.00001 par value: 12,600,000 shares authorized; 4,443,236 and 4,754,986 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive Income/loss) Total shareholders' equity Total abilities and shareholders' equity 45,174 45,898 (584) 90,488 338,516 40,201 70,400 (3,454) 107,147 365,725 $ $ los aconaua Malee in Canadatod Einancial Statemente a. Calculate cash flows from assets, cash flows to creditors, and cash flows to shareholders for 2019. b. Create a statement of cash flow (accounting statement) for 2019. c. Calculate cash cycle. d. Conduct a thorough financial ratio analysis. e. Use the percent-of-sales formula to calculate the amount of external financing needed for year 2020. (Assumptions: Sales are expected to grow by 8 percent in year 2020, the net profit margin is expected to be 12 percent, and the dividend payout ratio is 35 percent. The fixed assets are currently being used at full capacity.) Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) September 28, 2019 Years ended September 29, 2018 September 30, 2017 $ $ Net sales: Products Services Total net sales 213,883 $ 46,291 260,174 225.847 39,748 265,595 196,534 32,700 229,234 Cost of sales: Products Services Total cost of sales Gross margin 144.996 16,786 161,782 98,392 148,164 15,592 163,756 101,839 126,337 14.711 141,048 88,186 Operating expenses: Research and development Selling, general and administrative Total operating expenses 16,217 18.245 34,462 14.236 16,705 30,941 11,581 15.261 26,842 Operating income Other incomal(expense), net Income before provision for Income taxes Provision for income taxes Net Income 63,930 1,807 65.737 10,481 55,256 70,898 2,005 72,903 13,372 59,531 61,344 2,745 64,089 15,738 48,351 $ $ $ Earnings per share Basic Diluted 11.97 11.89 $ $ 12.01 11.91 s $ 9.27 9.21 Shares used in computing earnings per share: Basic Diluted 4,617,834 4,648,913 4,955,377 5,000, 109 5.217.242 5,251,692 See accompanying Notes to Consolidated Financial Statements. Apple Inc. 2019 Form 10-K | 29 September 28, 2019 September 23, 2018 ASSETS: $ $ Current assets: Cash and cash equivalents Marketable securities Accounts receivable, net Inventories Vendor non-trade receivables Other current assets Total current assets 48,844 51,713 22,926 4,106 22,878 12,352 162,819 25.913 40,388 23,186 3,956 25,809 12,087 131,339 Non-current assets: Marketable securities Property, plant and equipment, net Other non-current assets Total non-current assets Total assets 105,341 37,378 32,978 175,697 338,516 $ 170,799 41,304 22,283 234,386 365,725 $ LIABILITIES AND SHAREHOLDERS' EQUITY: $ Current liabilities: Accounts payable Other current liabilities Deferred revenue Commercial paper Term debt Total current liabilities 46.236 37.720 5,522 5,980 10,260 105,718 55,888 33,327 5,966 11,064 8,784 115,929 Non-current liabilities: Term debt Other non-current liabilities Total non-current liabilities Total liabilities 91,807 50,503 142,310 248,028 93.735 48,914 142,649 258,578 Commitments and contingencies Shareholders' equity Common stock and additional paid-in capital, S0.00001 par value: 12,600,000 shares authorized; 4,443,236 and 4,754,986 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive Income/loss) Total shareholders' equity Total abilities and shareholders' equity 45,174 45,898 (584) 90,488 338,516 40,201 70,400 (3,454) 107,147 365,725 $ $ los aconaua Malee in Canadatod Einancial Statemente a. Calculate cash flows from assets, cash flows to creditors, and cash flows to shareholders for 2019. b. Create a statement of cash flow (accounting statement) for 2019. c. Calculate cash cycle. d. Conduct a thorough financial ratio analysis. e. Use the percent-of-sales formula to calculate the amount of external financing needed for year 2020. (Assumptions: Sales are expected to grow by 8 percent in year 2020, the net profit margin is expected to be 12 percent, and the dividend payout ratio is 35 percent. The fixed assets are currently being used at full capacity.)