Choose annual report of the APPLE Inc to gain a general understanding of the company's primary business segments and products. Write a report addressing the following questions based on your research. What products or services are provided by the company? How does the financial information provided in the annual report (focus on the income statement) differ from financial information used for managerial accounting purposes? As a manager making business decisions within the company, what additional information would you need? (Remember that the income statement may be referred to using different terminology such as statement of earnings or statement of operations.)

Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) Years ended September 28, September 29, September 30, 2019 2018 2017 55,256 $ 59,531 $ 48,351 Net income Other comprehensive income/loss): Change in foreign currency translation, net of tax (408) (525) 224 (661) 523 1,315 Change in unrealized gains/losses on derivative instruments, net of tax: Change in fair value of derivatives Adjustment for net (gains) losses realized and included in net income Total change in unrealized gains/losses on derivative instruments 23 382 (1,477) (638) 905 (162) 3,802 (3,407) (782) Change in unrealized gains/losses on marketable securities, net of tax: Change in fair value of marketable securities Adjustment for net (gains)/losses realized and included in net income Total change in unrealized gains/losses on marketable securities 25 (64) 3,827 (3,406) (846) Total other comprehensive income/loss) Total comprehensive income 2,781 58,037 (3,026) 56,505 S S (784) 47,567 $ See accompanying Notes to Consolidated Financial Statements. Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) September 28, Years ended September 29, 2018 2019 September 30, 2017 $ $ Net sales: Products Services Total net sales 213,883 $ 46,291 260,174 225,847 39,748 265,595 196,534 32,700 229,234 Cost of sales: Products Services Total cost of sales Gross margin 144,996 16,786 161,782 98,392 148,164 15,592 163,756 101,839 126,337 14,711 141,048 88,186 Operating expenses: Research and development Selling, general and administrative Total operating expenses 16,217 18,245 34,462 14,236 16,705 30,941 11,581 15,261 26,842 Operating income Other income (expense), net Income before provision for income taxes Provision for income taxes Net income 63,930 1,807 65,737 10,481 55,256 70,898 2,005 72,903 13,372 59,531 $ 61,344 2,745 64,089 15,738 48,351 $ $ Earnings per share: Basic Diluted $ $ 11.97 11.89 $ $ 12.01 11.91 $ $ 9.27 9.21 Shares used in computing earnings per share: Basic Diluted 4,617,834 4,648,913 4,955,377 5,000,109 5,217,242 5,251,692 See accompanying Notes to Consolidated Financial Statements Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) Years ended September 28, September 29, September 30, 2019 2018 2017 55,256 $ 59,531 $ 48,351 Net income Other comprehensive income/loss): Change in foreign currency translation, net of tax (408) (525) 224 (661) 523 1,315 Change in unrealized gains/losses on derivative instruments, net of tax: Change in fair value of derivatives Adjustment for net (gains) losses realized and included in net income Total change in unrealized gains/losses on derivative instruments 23 382 (1,477) (638) 905 (162) 3,802 (3,407) (782) Change in unrealized gains/losses on marketable securities, net of tax: Change in fair value of marketable securities Adjustment for net (gains)/losses realized and included in net income Total change in unrealized gains/losses on marketable securities 25 (64) 3,827 (3,406) (846) Total other comprehensive income/loss) Total comprehensive income 2,781 58,037 (3,026) 56,505 S S (784) 47,567 $ See accompanying Notes to Consolidated Financial Statements. Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) September 28, Years ended September 29, 2018 2019 September 30, 2017 $ $ Net sales: Products Services Total net sales 213,883 $ 46,291 260,174 225,847 39,748 265,595 196,534 32,700 229,234 Cost of sales: Products Services Total cost of sales Gross margin 144,996 16,786 161,782 98,392 148,164 15,592 163,756 101,839 126,337 14,711 141,048 88,186 Operating expenses: Research and development Selling, general and administrative Total operating expenses 16,217 18,245 34,462 14,236 16,705 30,941 11,581 15,261 26,842 Operating income Other income (expense), net Income before provision for income taxes Provision for income taxes Net income 63,930 1,807 65,737 10,481 55,256 70,898 2,005 72,903 13,372 59,531 $ 61,344 2,745 64,089 15,738 48,351 $ $ Earnings per share: Basic Diluted $ $ 11.97 11.89 $ $ 12.01 11.91 $ $ 9.27 9.21 Shares used in computing earnings per share: Basic Diluted 4,617,834 4,648,913 4,955,377 5,000,109 5,217,242 5,251,692 See accompanying Notes to Consolidated Financial Statements