Chapter 9 Assignment Question 4 of 5 View Policies Current Attempt in Progress Refer to the financial statements of Apple Inc. in Appendix A. Click here to view Appendix A. Answer the following questions. (a) What were Apple's total current liabilities at September 29, 2018? What was the increase/decrease in Apple's total current liabilities from the prior year? Total current liabilities $ Apple's total current liabilities eTextbook and Media Save for Later by $ millions millions relative to th Attempts: 0 of 10 used Submit Answer (b) The parts of this question must be completed in order. This part will be available when you complete the part above. Appendix A Specimen Financial Statements: Apple Inc. Once each year, a corporation communicates to its stockholders and other interested parties by issuing a complete set of audited financial statements. The annual report, as this communication is called, summarizes the financial results of the company's operations for the year and its plans for the future. Many annual reports are attractive, multicolored, glossy public relations pieces, containing pictures of corporate officers and directors as well as photos and descriptions of new products and new buildings. Yet the basic function of every annual report is to report financial information, almost all of which is a product of the corporation's accounting system. The content and organization of corporate annual reports have become fairly standardized. Excluding the public relations part of the report (pictures, products, etc.), the following are the traditional financial portions of the annual report: Financial Highlights Letter to the Stockholders Management's Discussion and Analysis . Financial Statements Notes to the Financial Statements Management's Responsibility for Financial Reporting Management's Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Selected Financial Data: . . . . . The official SEC filing of the annual report is called a Form 10-K, which often omits the public relations pieces found in most standard annual reports. The following are Apple nc.'s financial statements taken from the company's 2018 Form 10-K. The complete Form 10-K. including notes to the financial statements, is available at the company's website. Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) Net sales Cost of sales Gross margin Operating expenses: Research and development Selling, general and administrative Total operating expenses Operating incoma September 29, 2018 $ 265,595 163,756 101,839 11,236 16,705 30,941 70 909 Years ended September 30, 2017 $ 229,234 141,048 88,186 11,581 15,261 26,842 61 244 September 24. 2016 $ 215,639 131,376 84.263 10,045 14,194 24,239 50.024 Net sales Cost of sales Gross margin Operating expenses: Research and development Selling, general and administrative Total operating expenses Operating income Other income/(expense). net Income before provision for income taxes Provision for income taxes Net income Earnings per share: Basic Diluted Shares used in computing earnings per share: Basic Diluted Net income Other comprehensive income/(loss): Change in foreign currency translation, net of tax effects of $(1), $(77) and $8 September 29, 2018 $ 265.595 163,756 101,839 amounts) $ $ 11,236 16,705 30,941 70,898 13,372 $ 59,531 2,005 72,903 12.01 11.91 4,955,377 5,000,109 Years ended September 30, 2017 $ 229,234 141,048 88,186 September 29, 2018 $59,531 11,581 S $ 15,261 26,842 61,3 2,745 64,089 15,738 $ 48,351 9.27 9.21 5,217,242 5,251,692 See accompanying Notes to Consolidated Financial Statements. Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) September 24. 2016 Years ended September 30, 2017 $48,351 $ 215,639 131.376 84.263 10,045 14,194 24,239 60,024 1,348 61,372 15,685 $ 45,687 $ 8.35 $ 8.31 5,470,820 5,500,281 Septembe 24, 2016 $45,687 CONSOLIDATED STATEMENTS OF COMPREHE (In millions) Net income Other comprehensive income/Closs): Change in foreign. currency translation, net of tax effects of $(1), $(77) and $8, respectively 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 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 September 29, 2018 $59,531 (525) 523 382 905 (3,407) Years ended September 30, 2017 $48,351 224 1,315 (1,477) (162) (782) (64) Septemb 24, 201 $45,687 (74 (73 1,58 Total other comprehensive income (loss) Total comprehensive income Current assets: Cash and cash equivalents Marketable securities Accounts receivable, net Inventories Vendor non-trade receivables Other current assets Total current assets See accompanying Notes to Consolidated Financial Statements. Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) Non-current assets: Marketable securities Property, plant and equipment, net Other non-current assets Total non-current assets Total assets Current liabilities: Accounts payable Other current liabilities. Deferred revenue Commercial paper Term debt Total current liabilities. Non-current liabilities: Deferred revenue- Term debt Other non-current liabilities Total non-current liabilities Total liabilities (3,026) $56,505 170,799 41,304 22,283 234,386 $365,725 LIABILITIES AND SHAREHOLDERS' EQUITY: Commitments and contingencies Shareholders' equity: Common stock and additional paid in (784) $47,567 ASSETS: September 29, 2018 $ 25,913 40,388 23,186 3,956 25,809 12,087 131,339 $ 55,888 32,687 7,543 11,964 8,784 116,866 979 $46,666 2,797 93,735 45,180 141,712 258,578 September 30, 2017 $ 20,289 53,892 17,874 4,855 17,799 13,936 128,645 194,714 33,783 18,177 246,674 $375,319 $ 44,242 30,551 7,548 11,977 6,496 100,814 2,836 97,207 40,415 140,458 241,272 Term det Total current liabilities - Non-current liabilities: 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 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 irrund not Common Stock and Additional Paid-In Capital Shares Amount 5,578,753 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 Accum. Oth (279,609) $27,416 T 2,797 93,735 45,180 4,262 141,712 258,578 40,201 70,400 (3,454) 107,147 $365,725 Retained Earnings $92.284 45,687 (12,188) 2,836 97,207 40,415 140,458 241,272 (29,000) 35,867 98,330 (150) 134,047 $375,319 Compre Income Balances as of September 26, 2015 Net income Other comprehensive income/(loss) Apple Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In millions, except number of shares which are reflected in thousands and per Common Stock and Additional Paid-In Capital Shares Amount 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 5,578,753 (279,609) 37,022 5,336,166 (246,496) $27,416 4,262 (806) 379 31,251 Retained Earnings $92.284 45,687 (12,188) (29,000) (419) 96,364 48,351 (12,803) (33,001) Accum Oth Compre Income 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 (246,496) 36,531 5.126,201 (405,549) 34,334 4,754,986 4,909 (913) 620 35,867 111 5,443 (1,109) $40,201 (33,001) (581) 98,330 278 59,531 (13,735) (73,056) (948) $70,400 St See accompanying Notes to Consolidated Financial Statements. Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWE Cash and cash equivalents, beginning of the year Operating activities: Net income Adjustments to reconcile net income to cash generated by operating activities: Depreciation and Share-based amortization compensation expense Deferred income tax expense/(benefit) Other CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) Changes in operating assets and liabilities: Accounts receivable, net i 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 September 29, 2018 $20,289 59,531 10,903 5,340 (62,590) (444) (5,322) 828 (8,010) (423) 9,175 (44) 38,490 77,434 (71,356) 55,881 47,838 (13,313) (721) (1,871) Years ended September 30. 2017 $20,484 48,351 10,157 4,840 5,966 (166) (2,093) (2,723) (4,254) (5,318) 8,966 (626) 1.125 64,225 (159,486) 31,775 94,564 (12,451) (329) (521) September 24. 2016 $21,120 45.687 10,505 4,210 4,938 486 527 217 (51) 1,055 2,117 (1,554) (1,906) 66,231 (142,428) 21,258 90,536 (12,734) (297) (1,388) 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 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- (423) 9,175 (44) 38,490 77.434 (71.356) 55,881 47,838 (13,313) (721) (1,871) 353 (745) 16,066 669 (2.527) (13,712) (72,738) 6,969 (6,500) (37) (87,876) 5,624 $25,913 $10,417 (5,318) 8,966 (626) 1,125 64,225 (159,486) 31,775 94,564 (12,451) (329) (521) 126 (124) (46,446) 555 (1,874) (12,769) (32,900) 28,662 (3,500) 3,852 (17,974) (195) $20,289 $11,591 1,055 2,117 (1,554) (1,906) 66,231 (142,428) 21,258 90,536 (12,734) (297) (1,388) (924) (45,977) 495 (1,570) (12,150) (29,722) 24,954 (2,500) (397) (20,890) (636) $20,484 $10,444