Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) Years ended September 26, 2020 September 28, 2019 September 29, 2018 Net sales: Products $ $ 213,883 $ Services Total net sales 220,747 53,768 274,515 46,291 260,174 225,847 39,748 265,595 Cost of sales: Products Services Total cost of sales Gross margin 151,286 18,273 144,996 16,786 148,164 15,592 169,559 161,782 163,756 104,956 98,392 101,839 Operating expenses: Research and development Selling, general and administrative Total operating expenses 18,752 19,916 16,217 18,245 14,236 16,705 38,668 34,462 30,941 66,288 803 63,930 1,807 70,898 2.005 Operating income Other income/expense), net Income before provision for income taxes Provision for income taxes Net income 72,903 67,091 9,680 65,737 10,481 13,372 $ 57,411 $ 55,256 $ 59,531 Earnings per share: Basic $ 2.99 $ 3.00 3.31 $ 3.28 $ Diluted $ 2.97 $ 2.98 Shares used in computing earnings per share: Basic 17,352, 119 18,471,336 18,595,651 19,821,510 20,000,435 Diluted 17,528,214 1. Why are Apple's diluted EPS different from their basic EPS? a. Because Apple frequently issues shares to raise capital b. Because Apple compensates employees with stock options. c. Because Apple never issues convertible preferred stock d. Because Apple converted a bond into shares in the most recent year