B. Refer to BTN 5-1 page 272 Please answer the following questions for Apple only. 1. What amount of inventories did Apple report as a current asset on 9/29/2018 and 9/30/17? 2. Inventories represent what percent of total assets on 9/29/2018? On 9/30/17? 3. Comment on the relative size of Apple's inventories compared to its other types of assets. 4. What accounting method did Apple use to compute inventory amounts on its balance sheet. On what page of the 10-K did you find this information? 5. Compute inventory turnover for fiscal year ended 9/29/2018 and days sales in inventory as of 9/29/2018. Apple Inc. CONSOLIDATED BALANCE SHEETS (in milions, except number of shares which are reflected in thousands and par value) September 30, September 29, 2018 ASSETS: 5 Current assets Cash and cash equivalents Marketable securities Accounts receivable.net Inventories Vendor non-trade receivables Other current assets Total current assets 25.013 40 388 23,185 3,956 25.809 12.087 131,339 20 289 53,892 17 874 4,855 17.799 13.936 128.545 Noncurrents Marketable securities Property, plant and equipment, net Other non-current assets Total non-current assets Total assets 170.799 41,304 22 283 234 386 365.725 194.714 33.783 18.177 246.874 375 319 LIABILITIES AND SHAREHOLDERS' EQUITY: Current labies $ Accounts payable Other current abilities Deferred revenue Commercial paper Term debt Total current liabilities 55,888 32.687 7.543 11,964 8.784 116,866 44.242 30,551 7,548 11.977 100. 814 Non-current liabilities Deferred revenue Term debit Other non-current abilities Total non-current liabilities Total abilities 2.797 93.735 45.180 141,712 258 578 2.836 97 207 40,415 140.458 241.272 Commitments and contingencies Shareholders' equily Common stock and additional paid in capital 0.00001 par value: 12.600.000 shares authorized 4.754.986 and 5,120 201 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income oss) Total shareholders' equity Total liabilities and shareholders' equity 40.201 70.400 (3.454) 107,147 365.725 35,867 98,330 (150) 134.047 375 319 $ See accompanying Notes to Consolidated Financial Statements Apple Inc. 2018 Form 10-K40 Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) Years ended September 30, September 29, September 24, $ Net sales Cost of sales 265,6955 163,756 101.839 229 234 141 048 88188 215.639 131.376 84203 Gross margin 10,045 Operating expenses: Research and development Selling general and administrative Total operating expenses 14 236 16,705 30 941 11.581 15 201 26.842 24 239 60,024 Operating income Other income expensel.net Income before provision for income taxes Provision for income taxes Net income 70.898 2.005 72.903 13,372 59,531 61 344 2.745 64,089 15.738 48,351 81,372 15.685 45 687 $ Earings per share 12.01 11.91 $ $ 9.27 9.21 $ $ 8.31 Diluted Shares used in computing earings per share: 4,955 377 5.000 109 5.217.242 5.251.692 5.470 620 5.500 281 See accompanying Notes to Consolidated Financial Statements. Apple Inc. 2018 Form 10-K38
