CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) Years ended September 24, September 26, 2016 2015 Cash and cash equivalents, beginning of the year $ 21,120 $ 13,844 September 27, 2014 $ 14,259 45,687 53,394 39,510 10,505 4,210 4,938 11,257 3,586 1,382 7,946 2,863 2,347 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 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 611 1,095 217 (51) 1,090 1,791 (1,554) (2,104) 65,824 (238) (3,735) (179) 5,400 1,042 8,746 81,266 (4,232) (76) (2,220) 167 5,938 1,460 6,010 59,713 (142,428) 21,258 90,536 (166,402) 14,538 107,447 (217,128) 18,810 189,301 (297) (343) (3,765) Investing activities: Purchases of marketable securities Proceeds from maturities of marketable securities Proceeds from sales of marketable securities Payments made in connection with business acquisitions, net Payments for acquisition of property, plant and equipment Payments for acquisition of intangible assets Payments for strategic investments Other Cash used in investing activities (11,247) (241) (12,734) (814) (1,388) (110) (45,977) (9,571) (242) (10) 26 (22,579) (26) (56,274) 495 407 543 749 730 739 Financing activities: Proceeds from issuance of common stock Excess tax benefits from equity awards 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 (1,570) (12,150) (29,722) 24,954 (2,500) (397) (1,499) (11,561) (35,253) 27,114 (1,158) (11,126) (45,000) 11,960 2,191 6,306 Repayments of term debt Change in commercial paper, net Cash used in financing activities (2,500) (397) (20,483) 2,191 (17,716) 6,306 (37,549) Increase/(Decrease) in cash and cash equivalents Cash and cash equivalents, end of the year (636) 20,484 7,276 21,120 (415) 13,844 $ $ $ See accompanying Notes to Consolidated Financial Statements. Operating Activities What was the net income for the most recent year (ending 9-24-16)? What are the three adjustments to net income with the highest additions to net income? Give the description as well as the amounts. What is the cash generated by operating activities? What is the percentage change from the prior year? Investing Activities The first three items involve the purchase (negative) or the sale and maturities (positive) of marketable securities or short-term investments. What is the net amount? How much did Apple actually invest is short-term investments net of what they collected from sales and maturities? How much did Apple spend on business acquisitions? Compare the amount to the prior year? How much did Apple spend on property, plant & equipment? Compare the amount to the prior year? Financing Activities How much money was raised by issuing stock? How much was paid in dividends? How much common stock was repurchased (treasury stock)? What was the net borrowing in long-term debt? Look at the proceeds less the repayments. Analysis of Cash Flow Statement Did Apple generate enough cash from operating activities to pay for their investing activities? Give the amounts for the last two years. How much has Apple spent on acquisitions over the last three years? How much has Apple spent on property, plant & equipment over the last three years? Calculate the free cash flow for the most recent year? What has Apple done with all of that money? Give descriptions and amounts for the three largest amounts
