b. Solvency: Complete the following table to help you gather your information. Most Current Previous Year Date Table Year Amount Amount Page # Total Assets: Total Liabilities: Cash Provided by Operations: Make sure to show your work. 1. Debt to total assets ratio 2. Cash debt coverage ratio Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) Years ended Net sales Cost of sales Gross margin September 29, 2018 265,595 163,756 101,839 September 30, 2017 $ 229,234 141,048 88,186 September 24, 2016 $ 215,639 131,376 84,263 Operating expenses: Research and development Selling, general and administrative Total operating expenses 14.236 16,705 30,941 11,581 15,261 26,842 10,045 14,194 24,239 Operating income Other incomel(expense), 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 $ 60.024 1,348 61,372 15,685 45,687 $ $ Earnings per share: Basic Diluted $ $ 12.01 $ 11.91 $ 9.27 $ 9.21 $ 8.35 8.31 Shares used in computing earnings per share: Basic Diluted 4,955,377 5,000,109 5,217,242 5,251,692 5,470,820 ,500,281 5 See accompanying Notes to Consolidated Financial Statements. Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) Years ended September 29, September 30, Sep 2016 $ 59,531 $ 48,351 $ 45,687 Net income Other comprehensive income (loss): Change in foreign currency translation, net of tax effects of $(1), $(77) and $8, respectively (525) 224 75 523 1,315 Change in unrealized gains/losses on derivative instruments: Change in fair value of derivatives, net of tax benefit/(expense) of $(149), $(478) and $(7), respectively 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) (3,407) (782) 1,582 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 (64) 56 (3,406) (846) 1,638 Total other comprehensive income/(loss) Total comprehensive income (3,026) 56,505 (784) 47,567 $ 979 46,666 $ See accompanying Notes to Consolidated Financial Statements. (In millions, except number of shares which are reflected in thousands and par value) September 29, 2018 September 30, 2017 ASSETS: $ Current assets: Cash and cash equivalents Marketable securities Accounts receivable, net Inventories Vendor non-trade receivables Other current assets Total current assets 25,913 40,388 23,186 3,956 25,809 12,087 131,339 20,289 53,892 17,874 4,855 17,799 13,936 128,645 Non-current assets: 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 18,177 246,674 375,319 $ $ LIABILITIES AND SHAREHOLDERS' EQUITY: $ $ Current liabilities: Accounts payable Other current liabilities 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 6,496 100,814 Non-current liabilities: Deferred revenue Term debt Other non-current liabilities Total non-current liabilities Total liabilities 2,797 93,735 45,180 141,712 258,578 2,836 97,207 40,415 140,458 241,272 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 40,201 70,400 (3,454) 107,147 365,725 35,867 98,330 (150) 134,047 375,319 $ $ 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 Shares Amount 5,578,753 $ 27,416 Retained Earnings $ 92,284 45,687 Accumulated Other Comprehensive Income/(Loss) $ Total Shareholders' Equity 119,355 45,687 979 979 (12,188) (29,000) (279,609) (12,188) (29,000) 4,262 4,262 TILL 37,022 (806) (419) (1,225) 379 31,251 5,336, 166 634 96,364 48,351 379 128,249 48,351 (784) (784) Balances as of September 26, 2015 Net income Other comprehensive income/(loss) Dividends and dividend equivalents declared at $2.18 per share or RSU Repurchase of common stock Share-based compensation Common stock issued, net of shares withheld for employee taxes Tax benefit from equity awards, including transfer pricing adjustments Balances as of September 24, 2016 Net income Other comprehensive income (loss) Dividends and dividend equivalents declared at $2.40 per share or RSU Repurchase of common stock Share-based compensation Common stock issued, net of shares withheld for employee taxes Tax benefit from equity awards, including transfer pricing adjustments Balances as of September 30, 2017 Cumulative effect of change in accounting principle Net income Other comprehensive income (loss) Dividends and dividend equivalents declared at $2.72 per share or RSU Repurchase of common stock Share-based compensation Common stock issued, net of shares withheld for employee taxes Balances as of September 29, 2018 (12,803) (33,001) (246,496) (12,803) (33,001) 4,909 4,909 36,531 (913) (581) (1,494) 620 35,867 620 134,047 5,126,201 98,330 (150) (278) 278 59,531 59,531 (3,026) - (3,026) (13,735) (73,056) (405,549) (13,735) (73,056) 5,443 5,443 34,334 4,754,986 (1.109) 40,201 $ (948) 70,400 (2,057) 107,147 $ $ (3,454) $ See accompanying Notes to Consolidated Financial Statements. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) Years ended September 29, September 30, September 24, 2018 2017 2016 $ 20,289 $ 20,484 $ 21,120 Cash and cash equivalents, beginning of the year 59,531 48,351 45,687 10,903 5,340 (32,590) (444) 10,157 4,840 5,966 (166) 10,505 4,210 4,938 486 (5,322) 828 (8,010) (423) 9,175 (44) 38,490 77,434 (2,093) (2,723) (4,254) (5,318) 8,966 (626) 1,125 64,225 527 217 (51) 1,055 2,117 (1,554) (1,906) 66,231 Operating activities: Net income Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization Share-based compensation expense Deferred income tax expense/(benefit) Other Changes in operating assets and liabilities: Accounts receivable, net Inventories Vendor non-trade receivables Other current and non-current assets Accounts payable Deferred revenue Other current and non-current liabilities Cash generated by operating activities Investing activities: Purchases of marketable securities Proceeds from maturities of marketable securities Proceeds from sales of marketable securities Payments for acquisition of property, plant and equipment Payments made in connection with business acquisitions, net Purchases of non-marketable securities Proceeds from non-marketable securities Other Cash generated by used in) investing activities Financing activities: Proceeds from issuance of common stock 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 Cash used in financing activities (71,356) 55,881 47,838 (13,313) (721) (1,871) 353 (745) 16,066 (159,486) 31,775 94,564 (12,451) (329) (142,428) 21,258 90,536 (12,734) (297) (1,388) (521) 126 (124) (46,446) (924) (45,977) 669 (2,527) (13,712) (72,738) 6,969 (6,500) (37) (87,876) 5,624 25,913 555 (1,874) (12,769) (32,900) 28,662 (3,500) 3,852 (17,974) (195) 20,289 495 (1,570) (12,150) (29,722) 24,954 (2,500) (397) (20,890) (636) 20,484 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 $ $ 10,417 3,022 $ $ 11,591 2,092 $ $ 10,444 1,316 See accompanying Notes to Consolidated Financial Statements. Apple Inc. I 2018 Form 10-K | 42