Current assets Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) Cash and cash equivalents Marketable securities Accounts receivable, net Inventories Vendor non-trade receivables Other current assets Total current assets 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 a Total liabilities Commitments and contingencies ASSETS September 29, 2018 September 30, 2017 25,913 20,289 40.388 53,892 23,186 17,874 3,956 4,855 25,809 17.799. 12.087 13,936 131,339 128,645 170,799 194,714 41.304 33,783 22,283 18.177 234,386 246,674 S 365,725 375,319 LIABILITIES AND SHAREHOLDERS' EQUITY 55,88 S 44.242 32,687 30.551 7543 7548 11,964 11,977 8,784 6,496 116,866 100,814 2.797 2,836 93,735 97.207 45,180 40,415 141,712 140,458 258,578 241.272 Shareholders' equity Common stock and additional paid-in capital, 50.00001 par value: 12,600,000 shares authorized: 4,754,986 and 5,126,201 shares issued and outstanding, respectively Retained earnings 40,201 35,867 70,400 98.330 Accumulated other comprehensive income (loss) (3,454) (150) Total shareholders equity 107,147 134,047 Total liabilities and shareholders' equity $ 365,725 375,319 See accompanying Notes to Consolidated Financial Statements Years ended Net sales Cost of sales Gross margin Operating expenses Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) September 29, 2018 265,595 163,756 101.839 September 30, 2017 September 24, 2016 229,234 S 215.639 141,048 131376 88,186 84.263 Research and development Selling, general and administrative 14.236 11,581 10.045 16,705 15,261 14,194 Total operating expenses 30,941 26,842 24.239 Operating income 70,898 61,344 60,024 Other income (expense), net 2005 2,745 1348 Income before provision for income taxes 72.903 64,089 61.372 Provision for income taxes 13,372 15,738 15.685 Net income 59.531 48,351 $ 45.687 Earnings per share: Basic Diluted Shares used in computing earnings per share: Basic Diluted 4,955,377 5,000,109 12.01 927 35 1191 9.21 S 831 5,217,242 5251,692 5,470,820 3,300,281 Years ended See accompanying Notes to Consolidated Financial Statements Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) September 29, 2018 59,531 September 30, 2017 September 24, 2016 $ 48,351 S 45,687 Net income Other comprehensive income/(loss) Change in foreign currency translation, net of tax effects of $(1), 5(77) and $8, respectively Change in unrealized gainslosses on derivative instruments Change in fair value of derivatives, net of tax benefit (expense) of S(149), 5(478) and S(7), respectively Adjustment for net (gains) losses realized and included in net income, net of tax expense (benefit) of 5(104), $475 and $131, respectively Total change in unrealized gains/loses on derivative instruments, net of tax Change in uneralized gain/louses on marketable securities (525) 224 75 523 1315 382 (1477) (741) 905 (162) (734) Change in fair value of marketable securities, set of tax benefit (expense) of $1,156, $425 and 5(863), respectively (3,407) (782) 1,382 Adjustment for net (gains) louses realized and included in net income, net of tax expense benefit) of $21, 535 and 5031), respectively (64) 56 Total change in unrealized gain/loues on marketable securities, set of tax (3,406) (846) 1638 Total other compechensive income (loss) (3,026) (754) 979 Total comprehensive income 56,505 47567 46.666 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) Balances as of September 26, 2015 Net income Other comprehensive income (loss) Dividends and dividend equivalents declared at $2.18 per share or RSU Common Stock and Additional Paid-In Capital Retained Amount Earnings 5,578,753 $ 27,416 $ 92,284 $ Accumulated Other Comprehensive Income (Loss) (345) S 45,687 Shares Total Shareholders' Equity 119.355 45,687 979 979 Repurchase of common stock (279,609) (12,188) (29,000) (12,188) (29,000) Share-based compensation 4,262 4,262 Common stock issued, net of shares withheld for employee taxes 37.022 (806) (419) (1,225) Tax benefit from equity awards, including transfer pricing adjustments 379 379 Balances as of September 24, 2016 5.336,166 31,251 96.364 634 128,249 Net income 48.351 48,351 Other comprehensive income (loss) (784) (784) Dividends and dividend equivalents declared at $2.40 per share or RSU (12.803) (12.803) Repurchase of common stock (246,496) (33,001) (33.001) Share-based compensation 4,909 4,909 Common stock issued, net of shares withheld for employee taxes 36,531 (913) (581) (1.494) Tax benefit from equity awards, including transfer pricing adjustments 620 Balances as of September 30, 2017 5,126,201 35.867 98.330 (150) 620 134,047 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 See accompanying Notes to Consolidated Financial Statements 278 (278) 59,531 59.531 (3,026) (3,026) (13,735) (13,735) (405,549) (73,056) (73,056) 5,443 5,443 34,334 4,754,986 $ (1,109) (948) (2,057) 40,201 $ 70,400 (3.454) S 107,147 Use Apple's financial statements in Appendix A to answer the following. Required: 1. Is Apple's statement of cash flows prepared under the direct method or the indirect method? 2. For each fiscal year 2018, 2017, and 2016, identify the amount of cash provided by operating activities and cash paid for dividends. 3. In 2018, did Apple have sufficient cash flows from operations to pay dividends? 4. Did Apple spend more or less cash to repurchase common stock in 2018 versus 2017? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Is Apple's statement of cash flows prepared under the direct method or the indirect method? Apple's statement of cash flow For each fiscal year 2018, 2017, and 2016, identify the amount of cash provided by operating activities and cash paid for dividends. Note: Enter your answers in millions of dollars. $ millions Cash provided by operating activities Cash dividends paid 2018 2017 2016 Required 1 Required 2 Required 3 Required 4 In 2018, did Apple have sufficient cash flows from operations to pay dividends? In 2018, did Apple have sufficient cash flows from operations to pay dividends? Did Apple spend more or less cash to repurchase common stock in 2018 versus 2017? Apple spent