CT4.1 The financial statements of Apple Inc. are presented in Appendix A.

Instructions

1. Using the consolidated income statement and balance sheet, identify items that may result in adjustments for deferrals.
2. Using the consolidated income statement, identify two items that may result in adjustments for accruals.

refer to Picture uploads..ignore screenshots.

Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) September 29, 2018 $59.531 Years ended September 30, 2017 $48351 September 24, 2016 $45,687 Net income Other comprehensive income/(loss): Change in foreign currency translation, net of tax effects of $(1), $(77) and $8, respectively (525) 75 523 1315 7 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 382 905 (1,477) (162) (741) (734) (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 8(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 1,638 (3.406) Total other comprehensive income/(loss) Total comprehensive income (3,026) $56.505 (784) $47567 979 $46,666 See accompanying Notes to Consolidated Financial Statements. 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) 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 41304 22,283 234 386 $365.725 194.714 33.783 18,177 246,674 $375.319 LIABILITIES AND SHAREHOLDERS' EQUITY: LIABILITIES AND SHAREHOLDERS' EQUITY: Current linbilities: 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 $ 55.888 32,687 7.543 11,964 8.784 116,866 $ 44,242 30.551 7.548 11,977 6,496 100,814 93.735 45.180 141.712 258.578 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 See accompanying Notes to Consolidated Financial Statements, Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) September 29, 2018 $59.531 Yeans ended September 30, 2017 $48.85: September 24. 2016 $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 1315 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)/osses realized and included in net income, Wet of tax expense/(benefit) of $(104) $475 and $131, respectively Total change in unrealized gains/losses on derivative instruments, net of tax 382 905 (1.477) (162) (741 (734) (3.407) (782) 1582 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 8(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 1,638 (3.406) (846 Total other comprehensive income/(loss) Total comprehensive income (3.026) $56.505 (584) $47.567 9779 $46,666 See accompanying Notes to Consolidated Financial Statements Paragraph ta Styles 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) 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 131339 $ 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 $265.725 194.714 33.783 18.177 246,674 $375 319 LIABILITIES AND SHAREHOLDERS' EQUITY: P m 1 Normal UUUL 1 No Space Heading 1 Heading 2 Title Subtitle Subtle Em Emphases ** A.A. Fon 13 Paragraph LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities: Accounts payable Other current liabilities Deferred revenge Commercial paper Term debet Total current liabilities Non-current liabilities Deferred revenue Term debt Other non-current liabilities Tatal non-current liabilities Total liabilities $55.888 32,687 7,543 11,964 8,784 116,866 $ $14.242 30.651 7.548 11.977 6.496 100,814 2.797 93.735 45.180 141.712 258,578 2,836 97,207 40,415 140,458 241.272 Commitments and contingencies Sisarelolders' equity Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorised: 4.754.986 and 3.126,201 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income/(los) Total shareholders' equity Total liabilities and shareholders' equity 40,201 70.400 13.454) 107.147 $365.725 35,867 98.330 (150) 134.047 $375,319 See accompanying Notes to Consolidated Financial Statements, Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) September 29, 2018 $59.531 Years ended September 30, 2017 $48351 September 24, 2016 $45,687 Net income Other comprehensive income/(loss): Change in foreign currency translation, net of tax effects of $(1), $(77) and $8, respectively (525) 75 523 1315 7 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 382 905 (1,477) (162) (741) (734) (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 8(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 1,638 (3.406) Total other comprehensive income/(loss) Total comprehensive income (3,026) $56.505 (784) $47567 979 $46,666 See accompanying Notes to Consolidated Financial Statements. 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) 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 41304 22,283 234 386 $365.725 194.714 33.783 18,177 246,674 $375.319 LIABILITIES AND SHAREHOLDERS' EQUITY: LIABILITIES AND SHAREHOLDERS' EQUITY: Current linbilities: 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 $ 55.888 32,687 7.543 11,964 8.784 116,866 $ 44,242 30.551 7.548 11,977 6,496 100,814 93.735 45.180 141.712 258.578 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 See accompanying Notes to Consolidated Financial Statements, Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) September 29, 2018 $59.531 Yeans ended September 30, 2017 $48.85: September 24. 2016 $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 1315 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)/osses realized and included in net income, Wet of tax expense/(benefit) of $(104) $475 and $131, respectively Total change in unrealized gains/losses on derivative instruments, net of tax 382 905 (1.477) (162) (741 (734) (3.407) (782) 1582 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 8(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 1,638 (3.406) (846 Total other comprehensive income/(loss) Total comprehensive income (3.026) $56.505 (584) $47.567 9779 $46,666 See accompanying Notes to Consolidated Financial Statements Paragraph ta Styles 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) 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 131339 $ 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 $265.725 194.714 33.783 18.177 246,674 $375 319 LIABILITIES AND SHAREHOLDERS' EQUITY: P m 1 Normal UUUL 1 No Space Heading 1 Heading 2 Title Subtitle Subtle Em Emphases ** A.A. Fon 13 Paragraph LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities: Accounts payable Other current liabilities Deferred revenge Commercial paper Term debet Total current liabilities Non-current liabilities Deferred revenue Term debt Other non-current liabilities Tatal non-current liabilities Total liabilities $55.888 32,687 7,543 11,964 8,784 116,866 $ $14.242 30.651 7.548 11.977 6.496 100,814 2.797 93.735 45.180 141.712 258,578 2,836 97,207 40,415 140,458 241.272 Commitments and contingencies Sisarelolders' equity Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorised: 4.754.986 and 3.126,201 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income/(los) Total shareholders' equity Total liabilities and shareholders' equity 40,201 70.400 13.454) 107.147 $365.725 35,867 98.330 (150) 134.047 $375,319 See accompanying Notes to Consolidated Financial Statements