CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) Years ended September 27, 2014 September 28, 2013 September 29, 2012 $ 39,510 $ 37,037 41,733 Net income Other comprehensive income/(loss): Change in foreign currency translation, net of tax effects of $50, $35 and $13, respectively (137) (112) (15) Change in unrecognized gains/losses on derivative instruments Change in fair value of derivatives, net of tax benefit/(expense) of $(297), $(351) and $73, respectively 522 1,390 (131) Adjustment for net losses/(gains) realized and included in net income net of tax expense/(benefit) of $(36), $255 and $220, respectively 149 (458) (399) Total change in unrecognized gains/losses on derivative instruments, net of tax 1,539 (530) Change in unrealized gains/losses on marketable securities: Change in fair value of marketable securities, net of (expense) of $(153), $458 and $(421), respectively benefit/ 285 (791) 715 Adjustment for net losses/(gains) realized and included in net income net of tax expense/(benefit) of $71, $82 and $68, respectively (114) (134) (131) Total change in unrealized gains/losses on marketable securities 151 (922) net of tax 601 (970 Total other comprehensive income/(lass) 1,553 56 Total comprehensive income 41,063 36,067 41,789 64 CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 27, 2014 September 28, 2013 ASSETS: Current assets Cash and cash equivalents 13,844 14,259 Short-term marketable securities 11,233 26,287 Accounts receivable, less allowances of $86 and $99, respectively 17,460 13,102 2,111 Inventories 1,764 Deferred tax assets 4,318 3,453 Vendor non-trade receivables 9,759 7,539 Other current assets 9,806 6,882 Total current assets 68,531 73,286 130,162 Long-term marketable securities 106,215 Property,plant and equipment, net 20,624 16,597 Goodwill 4,616 1,577 Acquired intang ible assets, net 4,142 4,179 Other assets 3,764 5,146 $ 231,839 207,000 Total assets LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities: Accounts payable $ 30,196 22,367 18,453 Accrued expenses 13,856 Deferred revenue 8,491 7,435 Commercial paper 6,308 Total current liabilities 63,448 43,658 Deferred revenue-non-current 3,031 2,625 Long-term debt 28,987 16,960 Other non-current liabilities 24,826 20,208 Total liabilities 120,292 83,451 Commitments and contingencies Shareholders' equity: Common stock and additional paid-in capital, $0.00001 par value; 12,600,000 shares authorized; 5,866,161 and 6,294,494 shares issued and outstanding, respectively 23,313 19,764 Retained earnings 87,152 104,256 Accumulated other comprehensive income/(loss) 1,082 (471) Total shareholders' equity 111,547 123,549 $ 207,000 $ 231,839 Total liabilities and shareholders' equity See accompanying Notes to Consolidated Financial Statements. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In millions, except number of shares which are reflected in thousands) Accumulated Other Comprehensive Income/(Loss) Common Stock and Additional Paid-In Capital Total Shareholders Equity Retained Shares Amount Earnings Balances as of September 24, 2011 $ 76,615 $ 6,504,937 13,331 $62,841 443 41,733 41,733 Net income Other comprehensive income/(loss) 0 56 56 Dividends and dividend equivalents declared 0 (2,523) (2,523) Share-based compensation 1,740 1,740 Common stock issued, net of shares withheld for employee taxes (762) (562) 69,521 200 Tax benefit from equity awards, including transfer pricing adjustments 1,151 1,151 Balances as of September 29, 2012 6,574,458 16,422 101,289 499 118,210 Net income 0 37,037 37,037 Other comprehensive income/(loss) (970) (970) Dividends and dividend equivalents declared (10,676) (10,676) 0 (328,837) (22,950) (22,950) epurchas e of common stock Share-based compen sation 2,253 2,253 Common stock issued, net of shares withheld for employee taxes 48,873 143) (444) (587) Tax benefit from equity awards, including transfer pricing adjustments 1,232 1,232 Balances as of September 28, 2013 104,256 (471) 6,294,494 19,764 123,549 Net income 39,510 39,510 Other comprehensive income/(loss) 1,553 1,553 Dividends and dividend equivalents declared (11,215) (11,215) OO (488,677) Repurchase of common stock (45,000) (45,000) 0 Share-based compensation 2,863 2,863 Common stock issued, net of shares withheld for employee taxes (399) 60,344 (49) (448) Tax benefit from equity awards, including transfer pricing adjustments 735 735 $ 87,152 $23,313 Balances as of September 27, 2014 $ 1,082 $111,547 5,866,161 See accompanying Notes to Consolidated Financial Statements, CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) Years ended September 29, 2012 September 27, 2014 September 28, 2013 $ 9,815 Cash and cash equivalents, beginning of the year 14,259 10,746 Operating activities Net income 39,510 37,037 41,733 Adjustments to reconcile net income to cash generated by operating activities: epreciation and amortization 7,946 6,757 3,277 hare based compensation e pense 2,863 2,253 1,740 eferred income ta e pense 2,347 1,14 4,405 Changes in operating assets and liabilities: (5,551) Accounts receivable, net (4,232) (2,172) (76) (973) (15) Inventories endor non trade receivables (2,220) 223 (1,414 Other current and non current assets 167 1,080 (3,162) Accounts payable 5,938 2,340 4,467 2,824 Deferred revenue 1,460 1,459 Other current and non-current liabilities 6,010 4,521 2,552 59,713 Cash generated by operating activities Investing activities 53,666 50,856 urchases of mar etable securities (217,128) (148,489) (151,232) roceeds from maturities of mar etable securities 18,810 20,317 13,035 Proceeds from sales of mar etable securities 189,301 104,130 99,770 (350) Payments made in connection with business acquisitions, net (3,765) (496) (9,571) (8,295) Payments for acquisition of property, plant and equipment (8,165) Payments for acquisition of intangible assets (242) (911) (1,107) (160) Other 16 (48) (48,227) Cash used in investing activities (22,579) (33,774) Financing activities 530 Proceeds from issuance of common stock 730 665 xcess tax benefits from equity awards 739 701 1,351 axes paid related to net share settlement of equity awards (1,158) (1,226) (1,082) (2,488) Dividends and dividend equivalents paid (11,126) (10,564) (45,000) epurchase of common stock (22,860) Proceeds from issuance of long-term debt, net 11,960 16,896 Proceeds from issuance of commercial paper, net 6,306 Cash used in financing activities (37,549) (16,379) (1,698) Increase/(decrease) in cash and cash equivalents (415) 3,513 931 $ 13,844 Cash and cash equivalents, end of the year $14,259 10,746 Supplemental cash flow disclosure: 10,026 Cash paid for income taxes, net 9,128 7,682 Cash paid for interest 339 0 See accompanying Notes to Consolidated Financial Statements (a1) Make a 5-year trend analysis, using 2010 as the base year, of (1) net sales and (2) net income. (Round percentages to 0 decimal places, e.g. 15% and enter amounts in millions.) APPLE INC. Trend Analysis of Net Sales and Net Income For the Five Years Ended 2014 2011 2014 2013 2012 2010 (1) Net sales 108249 65225 182795 170910 156508 38 % % 36 % % Trend (2) Net income $ $ % % Trend Click if you would like to Show Work for this question: Open Show Work CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) Years ended September 27, 2014 September 28, 2013 September 29, 2012 $ 39,510 $ 37,037 41,733 Net income Other comprehensive income/(loss): Change in foreign currency translation, net of tax effects of $50, $35 and $13, respectively (137) (112) (15) Change in unrecognized gains/losses on derivative instruments Change in fair value of derivatives, net of tax benefit/(expense) of $(297), $(351) and $73, respectively 522 1,390 (131) Adjustment for net losses/(gains) realized and included in net income net of tax expense/(benefit) of $(36), $255 and $220, respectively 149 (458) (399) Total change in unrecognized gains/losses on derivative instruments, net of tax 1,539 (530) Change in unrealized gains/losses on marketable securities: Change in fair value of marketable securities, net of (expense) of $(153), $458 and $(421), respectively benefit/ 285 (791) 715 Adjustment for net losses/(gains) realized and included in net income net of tax expense/(benefit) of $71, $82 and $68, respectively (114) (134) (131) Total change in unrealized gains/losses on marketable securities 151 (922) net of tax 601 (970 Total other comprehensive income/(lass) 1,553 56 Total comprehensive income 41,063 36,067 41,789 64 CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 27, 2014 September 28, 2013 ASSETS: Current assets Cash and cash equivalents 13,844 14,259 Short-term marketable securities 11,233 26,287 Accounts receivable, less allowances of $86 and $99, respectively 17,460 13,102 2,111 Inventories 1,764 Deferred tax assets 4,318 3,453 Vendor non-trade receivables 9,759 7,539 Other current assets 9,806 6,882 Total current assets 68,531 73,286 130,162 Long-term marketable securities 106,215 Property,plant and equipment, net 20,624 16,597 Goodwill 4,616 1,577 Acquired intang ible assets, net 4,142 4,179 Other assets 3,764 5,146 $ 231,839 207,000 Total assets LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities: Accounts payable $ 30,196 22,367 18,453 Accrued expenses 13,856 Deferred revenue 8,491 7,435 Commercial paper 6,308 Total current liabilities 63,448 43,658 Deferred revenue-non-current 3,031 2,625 Long-term debt 28,987 16,960 Other non-current liabilities 24,826 20,208 Total liabilities 120,292 83,451 Commitments and contingencies Shareholders' equity: Common stock and additional paid-in capital, $0.00001 par value; 12,600,000 shares authorized; 5,866,161 and 6,294,494 shares issued and outstanding, respectively 23,313 19,764 Retained earnings 87,152 104,256 Accumulated other comprehensive income/(loss) 1,082 (471) Total shareholders' equity 111,547 123,549 $ 207,000 $ 231,839 Total liabilities and shareholders' equity See accompanying Notes to Consolidated Financial Statements. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In millions, except number of shares which are reflected in thousands) Accumulated Other Comprehensive Income/(Loss) Common Stock and Additional Paid-In Capital Total Shareholders Equity Retained Shares Amount Earnings Balances as of September 24, 2011 $ 76,615 $ 6,504,937 13,331 $62,841 443 41,733 41,733 Net income Other comprehensive income/(loss) 0 56 56 Dividends and dividend equivalents declared 0 (2,523) (2,523) Share-based compensation 1,740 1,740 Common stock issued, net of shares withheld for employee taxes (762) (562) 69,521 200 Tax benefit from equity awards, including transfer pricing adjustments 1,151 1,151 Balances as of September 29, 2012 6,574,458 16,422 101,289 499 118,210 Net income 0 37,037 37,037 Other comprehensive income/(loss) (970) (970) Dividends and dividend equivalents declared (10,676) (10,676) 0 (328,837) (22,950) (22,950) epurchas e of common stock Share-based compen sation 2,253 2,253 Common stock issued, net of shares withheld for employee taxes 48,873 143) (444) (587) Tax benefit from equity awards, including transfer pricing adjustments 1,232 1,232 Balances as of September 28, 2013 104,256 (471) 6,294,494 19,764 123,549 Net income 39,510 39,510 Other comprehensive income/(loss) 1,553 1,553 Dividends and dividend equivalents declared (11,215) (11,215) OO (488,677) Repurchase of common stock (45,000) (45,000) 0 Share-based compensation 2,863 2,863 Common stock issued, net of shares withheld for employee taxes (399) 60,344 (49) (448) Tax benefit from equity awards, including transfer pricing adjustments 735 735 $ 87,152 $23,313 Balances as of September 27, 2014 $ 1,082 $111,547 5,866,161 See accompanying Notes to Consolidated Financial Statements, CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) Years ended September 29, 2012 September 27, 2014 September 28, 2013 $ 9,815 Cash and cash equivalents, beginning of the year 14,259 10,746 Operating activities Net income 39,510 37,037 41,733 Adjustments to reconcile net income to cash generated by operating activities: epreciation and amortization 7,946 6,757 3,277 hare based compensation e pense 2,863 2,253 1,740 eferred income ta e pense 2,347 1,14 4,405 Changes in operating assets and liabilities: (5,551) Accounts receivable, net (4,232) (2,172) (76) (973) (15) Inventories endor non trade receivables (2,220) 223 (1,414 Other current and non current assets 167 1,080 (3,162) Accounts payable 5,938 2,340 4,467 2,824 Deferred revenue 1,460 1,459 Other current and non-current liabilities 6,010 4,521 2,552 59,713 Cash generated by operating activities Investing activities 53,666 50,856 urchases of mar etable securities (217,128) (148,489) (151,232) roceeds from maturities of mar etable securities 18,810 20,317 13,035 Proceeds from sales of mar etable securities 189,301 104,130 99,770 (350) Payments made in connection with business acquisitions, net (3,765) (496) (9,571) (8,295) Payments for acquisition of property, plant and equipment (8,165) Payments for acquisition of intangible assets (242) (911) (1,107) (160) Other 16 (48) (48,227) Cash used in investing activities (22,579) (33,774) Financing activities 530 Proceeds from issuance of common stock 730 665 xcess tax benefits from equity awards 739 701 1,351 axes paid related to net share settlement of equity awards (1,158) (1,226) (1,082) (2,488) Dividends and dividend equivalents paid (11,126) (10,564) (45,000) epurchase of common stock (22,860) Proceeds from issuance of long-term debt, net 11,960 16,896 Proceeds from issuance of commercial paper, net 6,306 Cash used in financing activities (37,549) (16,379) (1,698) Increase/(decrease) in cash and cash equivalents (415) 3,513 931 $ 13,844 Cash and cash equivalents, end of the year $14,259 10,746 Supplemental cash flow disclosure: 10,026 Cash paid for income taxes, net 9,128 7,682 Cash paid for interest 339 0 See accompanying Notes to Consolidated Financial Statements (a1) Make a 5-year trend analysis, using 2010 as the base year, of (1) net sales and (2) net income. (Round percentages to 0 decimal places, e.g. 15% and enter amounts in millions.) APPLE INC. Trend Analysis of Net Sales and Net Income For the Five Years Ended 2014 2011 2014 2013 2012 2010 (1) Net sales 108249 65225 182795 170910 156508 38 % % 36 % % Trend (2) Net income $ $ % % Trend Click if you would like to Show Work for this question: Open Show Work