(b) Compute the dollar amount of change and the percentage change in inventories between 2017 and 2018. Compute inventory as a percentage of current assets at September 29, 2018. (Enter dollar amount in millions. Enter all amounts as positive values. Round percentage answers to one decimal place, e.g. 15.2%.) Dollar change in inventories between 2017 and 2018 Percentage change in inventories between 2017 and 2018 Inventory as a percentage of current assets eTextbook and Media Save for Later million % % Attempts: 0 of 3 used Submit Answer Net sales Apple Inc. Consolidated Statements of Operations (in millions, except number of shares which are reflected in thousands and per share amounts) September 29, 2018 $ 265,595 163,756 101,839 Years ended September 30, 2017 $ 229,234 141,048 88,186 September 24, 2016 $ 215,639 131,376 Cost of sales Gross margin 84,263 Operating expenses: Research and development 14,236 11,581 Selling, general and administrative 16,705 15,261 Total operating expenses 30,941 26,842 10,045 14,194 24,239 Operating income 70,898 61,344 60,024 Other income/(expense), net 2,005 2,745 1,348 Income before provision for income taxes Provision for income taxes 72,903 64,089 61,372 13,372 15,738 $ 59,531 $ 48,351 15,685 45,687 Net income Earnings per share: Basic Diluted Shares used in computing earnings per share: Basic Diluted $ S 12.01 $ 9.27 $ 8.35 11.91 $ 9.21 S 8.31 4,955,377 5,000,109 5,217,242 5,251,692 5,470,820 5,500,281 See accompanying Notes to Consolidated Financial Statements. Apple Inc. Consolidated Statements of Comprehensive Income (in millions) Net income Other comprehensive income/(loss): Change in foreign currency translation, net of tax effects of $(1), $(77) and $8, respectively Change in unrealized gains/losses on derivative instruments: September 29, 2018 $59,531 Years ended September 30, 2017 $48,351 September 24, 2016 $45,687 (525) 224 75 Change in fair value of derivatives, net of tax benefit/(expense) of $(149), $(478) and $(7), respectively 523 1,315 7 Adjustment for net (gains)/losses realized and included in net income, net of tax expense/(benefit) of $(104), $475 and $131, respectively Total change in unrealized gains/losses on derivative instruments, net of tax 382 (1,477) (741) 905 (162) (734) Change in unrealized gains/losses on marketable securities: Change in fair value of marketable securities, net of tax benefit/(expense) of $1,156, $425 and $(863), respectively Adjustment for net (gains)/losses realized and included in net income, net of tax expense/(benefit) of $21, $35 and $(31), respectively Total change in unrealized gains/losses on marketable securities, net of tax (3,407) (782) 1,582 (64) 56 (3,406) (846) 1,638 Deferred revenue Term debt Other non-current liabilities Total non-current liabilities Total liabilities Commitments and contingencies Shareholders' equity: Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 4,754,986 and 5,126,201 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income/(loss) Total shareholders' equity Total liabilities and shareholders' equity See accompanying Notes to Consolidated Financial Statements. Apple Inc. Consolidated Statements of Shareholders' Equity (in millions, except number of shares which are reflected in thousands and per share amounts) Common Stock and Additional Paid-In Capital 2,797 2,836 93,735 97,207 45.180 40,415 141,712 140,458 258,578 241,272 40,201 35,867 70,400 98,330 (3.454) (150) 107,147 $365,725 134,047 $375,319 Net income Share-based compensation Balances as of September 26, 2015 Other comprehensive income/(loss) Dividends and dividend equivalents declared at $2.18 per share or RSU Repurchase of common stock Common stock issued, net of shares withheld for employee taxes Shares 5:578,753 Amount $27,416 Retained Earnings $92,284 Accumulated Other Comprehensive Income/(Loss) $ (345) 45,687 979 (12,188) (279,609) (29,000) 4,262 37,022 (806) (419) Total Shareholders' Equity $119,355 45,687 979 (12,188) (29,000) 4,262 (1,225) Tax benefit from equity awards, including transfer pricing adjustments Balances as of September 24, 2016 5.336.166 Net income 379 379 31,251 96,364 634 128,249 Other comprehensive income/(loss) Dividends and dividend equivalents declared at $2.40 per share or RSU Repurchase of common stock | | | 48,351 48,351 (784) (784) (12,803) (246,496) (33,001) (12,803) (33,001) Share-based compensation 4,909 Common stock issued, net of shares withheld for employee taxes 36,531 (913) (581) 4,909 (1,494) Tax benefit from equity awards, including transfer pricing adjustments Balances as of September 30, 2017 620 620 5,126,201 35.867 98,330 (150) 134,047 Cumulative effect of change in accounting principle 278 (278) Net income 59,531 59,531 Other comprehensive income/(loss) (3,026) (3,026) Dividends and dividend equivalents declared at $2.72 per share or RSU Repurchase of common stock (13,735) (13,735) (405,549) (73,056) (73,056) Share-based compensation 5,443 Common stock issued, net of shares withheld for employee taxes 34:334 (1,109) (948) 5,443 (2,057) Balances as of September 29, 2018 4,754,986 $40,201 $70,400 $(3,454) $107,147 See accompanuing Notes to Consolidated Financial Statements. Apple Inc. Consolidated Statements of Cash Flows (in millions) Cash and cash equivalents, beginning of the year Operating activities: September 29, 2018 $20,289 Years ended September 30, 2017 $20,484 September 24, 2016 $21,120 Net income 59,531 48,351 45,687 Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization 10,903 10,157 10,505 Share-based compensation expense 5,340 4,840 4,210 Deferred income tax expense/(benefit) (32,590) 5,966 4,938 Other (444) (166) 486 Changes in operating assets and liabilities: Accounts receivable, net (5,322) (2,093) 527 Inventories 828 (2,723) 217 Vendor non-trade receivables (8,010) (4,254) (51) Other current and non-current assets (423) (5,318) 1,055 Accounts payable 9,175 8,966 2,117 Deferred revenue (44) (626) (1,554) Other current and non-current liabilities 38,490 1,125 (1,906) Cash generated by operating activities Investing activities: Purchases of marketable securities 77:434 64,225 66,231 (71,356) (159,486) (142,428) Proceeds from maturities of marketable securities 55,881 31,775 21,258 Proceeds from sales of marketable securities 47,838 94,564 90,536 Payments for acquisition of property, plant and equipment (13,313) (12,451) (12,734) Payments made in connection with business acquisitions, net (721) (329) (297) Purchases of non-marketable securities (1,871) (521) (1,388) Proceeds from non-marketable securities 353 126 (745) (124) (924) (45,977) Other Cash generated by/(used in) investing activities 16,066 (46,446) Financing activities: Proceeds from issuance of common stock 669 555 Payments for taxes related to net share settlement of equity awards (2,527) (1,874) 495 (1,570) Payments for dividends and dividend equivalents (13,712) (12,769) Repurchases of common stock (72,738) (32,900) (12,150) (29,722) Proceeds from issuance of term debt, net 6,969 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 Supplemental cash flow disclosure: Cash paid for income taxes, net Cash paid for interest (6,500) (37) (87,876) 5,624 $25,913 28,662 3,852 (17,974) (195) $20,289 24,954 (2,500) (397) (20,890) (636) $20,484 (3,500) $10,417 $11,591 $ 3,022 $ 2,092 $10,444 $ 1,316