Apple provides calculations of both Basic and Diluted EPS. Why do companies often have to report Diluted EPS?

Apple common stock closed at $154.12 per share on September 30, 2017. Compute Apples price-earnings ratio at the end of fiscal 2017. (Note: Use the amount shown on the income statement as diluted earnings per share in your calculation.)

Why might the price-earnings ratio be of interest to investors?

During fiscal year 2017, Apple declared cash dividends of $2.40 per share on its common stock. Compute Apples dividend yield for fiscal 2017.

Why might the dividend yield be of interest to investors?

Income Statement

Balance Sheet

Item 6. Selected Financial Data The information set forth below for the five years ended September 30, 2017, is not necessarily indicative of results of future operations, and should be read in conjunction with Part tem 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the consolidated financial statements and related notes thereto included in Part II, Item 8 of this Form 10-K to fully understand factors that may affect the comparability of the information presented below (in millions, except number of shares, which are reflected in thousands, and per share amounts) 2017 2016 2015 2014 2013 Net sales 229,234 $ 48,351 $ 215,639 233,715 $182,795 $170,910 37,037 Net income 45,687 $ 53,394 $ 39,510 $ Earnings per share Basic 9.27$ 9.21 $ 8.35 $ 8.31 $ 9.28 S 9.22 $ 6.49 $ 6.45 $ 5.72 5.68 Diluted Cash dividends declared per share 2.40 $ 2.18 $ 1.98 S 1.82 $ 1.64 Shares used in computing earnings per share Basic Diluted 5,217,242 5,251,692 5,470,820 5,500,281 5,753,421 5,793,069 6,085,572 6,122,663 6,477,320 6,521,634 Total cash, cash equivalents and marketable securities Total assets Commercial paper Total term debt (1) Other long-term obligations (2) Total liabilities Total shareholders' equity 268,895 $ 375,319 $ 11,977 $ 103,703 $ 40,415 $ 241,272 $ 134,047 $ 237,585 $ 205,666 $ 155,239 $ 146,761 321,686 $290,345 $231,839 $207,000 6,308 $ 28,987 $ 24,826 $ 93,437$170,990 120,292 $ 16,960 20,208 83,451 128,249 $119,355 $ 111,547 $123,549 8,105 $ 78,927 $ 36,074 S 8,499 $ 55,829 S 33,427 $ (1) (2) Includes current and long-term portion of term debt. Excludes non-current deferred revenue Apple Inc. 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 20,289 $ 53,892 17,874 4,855 17,799 13,936 20,484 46,671 15,754 2,132 13,545 8,283 106,869 Total current assets 128,645 Long-term marketable securities Property, plant and equipment, net Goodwil Acquired intangible assets, net Other non-current 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 Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable Accrued expenses Deferred revenue Commercial paper Current portion of long-term debt 37,294 22,027 8,080 8,105 3,500 79,006 49,049 $ 25,744 7,548 11,977 6,496 00,814 Total current liabilities Deferred revenue, non-current Long-term debt Other non-current liabilities 2,836 97,207 40,415 241,272 2,930 75,427 36,074 193,437 Total liabilities 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 35,867 98,330 (150) 134,047 31,251 96,364 634 128,249 321,686 Accumulated other comprehensive incomel(loss) Total shareholders' equity Total liabilities and shareholders' equity 375,319 $ See accompanying Notes to Consolidated Financial Statements Apple Inc. | 2017 Form 10-K 41 Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) Years ended September 30, 2017 September 24, 2016 September 26, 2015 Cash and cash equivalents, beginning of the year 20,484 S 21,120 S 13,844 Operating activities: Net income 48,351 45,687 53,394 Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization Share-based compensation expense Deferred income tax expense Other 10,157 4,840 5,966 (166) 10,505 4,210 4,938 486 11,257 3,586 1,382 385 Changes in operating assets and liabilities: Accounts receivable, net (2,093) (2,723) (4,254) (5,318) 9,618 (626) (154) 63,598 527 417 (238) (3,735) (283) 5,001 1,042 9,058 81,266 217 Vendor non-trade receivables Other current and non-current assets Accounts payable Deferred revenue Other current and non-current liabilities 1,055 1,837 (1,554) Cash generated by operating activities 65,824 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 Other (159,486) 31,775 94,564 (329) (12,451) (344) (395) 220 (46,446) (166,402) 14,538 107,447 (343) (11,247) (241) (142,428) 21,258 90,536 (297) (12,734) (814) (1,388) 110 (45,977) 26 Cash used in investing activities (56,274) 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 627 (1,874) (12,769) (32,900) 28,662 (3,500) 3,852 (17,347) 195 495 407 (1,570) (12,150) (29,722) 24,954 (2,500) 543 749 (1,499) (11,561) (35,253) 27,114 2,191 (17,716) 7,276 21,120 Cash used in financing activities (20,483) 636 Increase/(Decrease) in cash and cash equivalents Cash and cash equivalents, end of the year 20,289 S 20,484 S Supplemental cash flow disclosure: Cash paid for income taxes, net Cash paid for interest 10,444 S 11,591 S 2,092 S 13,252 1,316 S 514 See accompanying Notes to Consolidated Financial Statements. Apple Inc. | 2017 Form 10-K | 43