*Do not have to use Zeros and can answer in Millions or Thousands. Answer and will thumbs up. Please ask any questions about the material given, thankyou.

Page A-2 APPLE September 26, 2015 $ Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 24, 2016 ASSETS Current assets Cash and cash equivalents $ 20,484 Short-term marketable securities 46,671 Accounts receivable, less allowances of $53 and $63, respectively 15,754 Inventories 2,132 Vendor non-trade receivables 13,545 Other current assets 8,283 Total current assets 106,869 Long-term marketable securities 170,430 Property, plant and equipment, net 27,010 Goodwill 5,414 Acquired intangible assets, nel 3,206 Other non-current assets 8,757 Total assets $ 321,686 21,120 20,481 16,849 2,349 13,494 15,085 89,378 164,065 22,471 5,116 3,893 5,422 290,345 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ Accrued expenses Deferred revenue Commercial paper Current portion of long-term debt Total current liabilities Deferred revenue, non-current Long-term debt Other non-current liabilities Total liabilities Commitments and contingencies Shareholders' equity Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 5,336,166 and 5,578,753 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income (loss) Total shareholders' equity Total liabilities and shareholders' cquity 37,294 22,027 8,080 8,105 3,500 79,006 2,930 75,427 36,074 193,437 35,490 25,181 8,940 8,499 2,500 80,610 3,624 53,329 33,427 170.990 31,251 96,364 634 128,249 321,686 27,416 92,284 (345) 119,355 290,345 See accompanying Notes to Consolidated Financial Statements. Page A-3 September 27, 2014 $ 182,795 112,258 70.537 Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) Years ended September 24, 2016 September 26, 2015 Nct sales 215,639 233,715 Cost of sales 131,376 140,089 Gross margin 84,263 93,626 Operating expenses Research and development 10,045 8,067 Selling, general and administrative 14,194 14,329 Total operating expenses 24,239 22,396 Operating income 60,024 71,230 Other income, net 1,348 1,285 Income before provision for income taxes 61,372 72,515 Provision for income taxes 15,685 19.121 Net income $ 45,687 S 53,394 6,041 11,993 18,034 52,503 980 53,483 13,973 39,510 S 9.28 S 8.35 8.31 $ S 6.49 6.45 9.22 Earnings per share: Basic Diluted Shares used in computing earnings per share: Basic Diluted Cash dividends declared per common share 5,470,820 5,500.281 2.18 5,753,421 5,793,069 1.98 6,085,572 6,122,663 1.82 $ S See accompanying Notes to Consolidated Financial Statements. September 27, 2014 $ 39,510 (137) 1,390 Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) Years ended September 24, 2016 September 26, 2015 Net income 45,687 $ 53,394 Other comprehensive income (loss): Change in foreign currency translation, net of tax effects of $8, $201 and $50, respectively (411) Change in unrealized gains/losses on derivative instruments: Change in fair value of derivatives, net of tax benefit (expense) of $(7), $(441) and $(297), respectively 2,905 Adjustment for net (gains) losses realized and included in net income, net of tax expense (benefit of $131, $630 and S(36), respectively (741) (3,497) Total change in unrealized gains/losses on derivative instruments, net of tax (734) (592) Change in unrealized gains/losses on marketable securities: Change in fair value of marketable securities, net of tax benefit (expense) of $(863), S264 and S(153), respectively 1,582 (483) Adjustment for net (gains) losses realized and included in net income. net of tax expense (benefit) of S(31). $(32) and $71, respectively 56 Total change in unrealized gains/losses on marketable securities, net of tax 1,638 (424) Total other comprehensive income (loss) 979 (1,427) Total comprehensive income 46,666 $ 51,967 149 1,539 285 (134) 151 1,553 See accompanying Notes to Consolidated Financial Statements. Page A-4 735 Apple Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In millions, except number of shares which are reflected in thousands) Accumulated Other Common Stock and Comprehensive Total Additional Paid-In Capital Retained Income Shareholders Shares Amount Earnings (Loss) Equity Balances as of September 28, 2013 6,294,494 19,764 104,256 (471) 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) Repurchase of common stock (488,677) (45,000) (45,000) Share-based compensation 2,863 2,863 Common stock issued, net of shares withheld for employee taxes 60,344 (49) (399) (448) Tax benefit from equity awards, including transfer pricing adjustments 735 Balances as of September 27, 2014 5,866,161 23,313 87,152 1,082 111,547 Nct income 53,394 53,394 Other comprehensive income (loss) - (1,427) (1,427) Dividends and dividend equivalents declared (11,627) (11,627) Repurchase of common stock (325,032) (36,026) (36,026) Share-based compensation 3,586 3,586 Common stock issued, net of shares withheld for employee taxes 37,624 (231) (609) (840) Tax benefit from equity awards, including transfer pricing adjustments 748 748 Balances as of September 26, 2015 5,578,753 27,416 92,284 (345) $ 119,355 Nel income 45,687 45,687 Other comprehensive income (loss) 979 979 Dividends and dividend equivalents declared (12,188) (12,188) Repurchase of common stock (279,609) (29,000) (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 Balances as of September 24, 2016 5,336,166 31,251 $ 96,364 128,249 11 | 379 .............. See accompanying Notes to Consolidated Financial Statements. Page A-5 September 27, 2014 S 14,259 39,510 7,946 2,863 2,347 (4,232) (76) (2,220) 167 5,938 1,460 6,010 59,713 Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) Years ended September 24, 2016 September 26, 2015 Cash and cash equivalents, beginning of the year $ 21,120 S 13,844 Operating activities: Net income 45,687 53,394 Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization 10,505 11,257 Share-based compensation expense 4,210 3,586 Deferred income tax expense 4,938 1,382 Changes in operating assets and liabilities: Accounts receivable, net 1,095 611 Inventories 217 (238) Vendor non-trade receivables (51) (3.735) Other current and non-current assets 1,090 (179) Accounts payable 1,791 5,400 Deferred revenue (1,554) 1,042 Other current and non-current liabilities (2,104) 8.746 Cash generated by operating activities 65,824 81,266 Investing activities: Purchases of marketable securities (142,428) (166,402) Proceeds from maturities of marketable securities 21,258 14,538 Proceeds from sales of marketable securities 90,536 107,447 Payments made in connection with business acquisitions, net (297) (343) Payments for acquisition of property, plant and equipment (12,734) (11,247) Payments for acquisition of intangible assets (814) (241) Payments for strategic investments (1,388) Other (110) Cash used in investing activities (45,977) (56,274) Financing activities: Proceeds from issuance of common stock 495 543 Excess tax benefits from equity awards 407 749 Payments for taxes related to net share settlement of equity awards (1,570) (1,499) Payments for dividends and dividend equivalents (12,150) (11,561) Repurchases of common stock (29,722) (35,253) Proceeds from issuance of term debt, net 24,954 27,114 Repayments of term debt (2,500) Change in commercial paper, net (397) 2,191 Cash used in financing activities (20,483) (17,716) Increase (decrease) in cash and cash equivalents (636) 7,276 Cash and cash equivalents, end of the year 20,484 (217,128) 18,810 189,301 (3,765) (9,571) (242) (10) 26 (22,579) (26) 730 739 (1,158) (11,126) (45,000) 11,960 6,306 (37,549) (415) 21.120 13,844 Supplemental cash flow disclosure: Cash paid for income taxes, net Cash paid for interest $ 10,444 1,316 $ S 13,252 514 $ $ 10,026 339 See accompanying Notes to Consolidated Financial Statements. V. Review Apple's Ratios Analysis for 2016 Page 559-564 (20 Points) Current Ratio (pages 559-560) (2 points) a. What was Apple's Current ratio in 2016 and 2015? b. How does this ratio compare to the industry. Google and Samsung? c. What guideline does the textbook author use to evaluate a company's dcblpaying ability? 2. Accounts Receivable Turnover (page 561) (2 points) a. What was Apple's Accounts Receivable Turnover ratio for 2016? b. How does this ratio compare to the industry, Google and Samsung? c. If the Accounts Receivable Turnover is generally in the range of 7 to 12, how is Apple doing? 3. Inventory Turnover (page 561) (2 points) a. What was Apple's Inventory turnover ratio for 2016? b. How does this ratio compare the industry, Google and Samsung? Days' Sales Uncollected (Pages 56) (2 points) a. What was Apple's Days' Sales Uncollected ratio for 2016? b. How does this ratio compare to Google and Samsung? c. If the Days' Sales Uncollected is generally in the range of 30 to 45, how is Apple doing? Days' Sales in Inventory (Page 562) (2 points) c. What was Apple's Days' Sales in Inventory ratio for 2016? d. How does this ratio compare the industry, Google and Samsung? Total Asset Turnover (page 561) (2 points) a. What was Apple's Total Assct Turnover ratio for 2016? b. How does this ratio compare to the industry, Google and Samsung? Debt-to-Equity (page 562) (2 points) 1 What was Apple's Debt-to-Equity ratio for 2016? b. Ilow does this ratio compare to the industry, Google and Samsung? c. What does this ratio tell you about Apples' cupital structure and risk? 8. Profit Margin (page 563) (2 points) a. What was Apple's Profit Margin ratio for 2016? b. How does this ratio compare to the industry, Google and Samsung? Price Earnings Ratio (pages 564) (2 points) a. What was Apple's Price-Lanuines Ratio for 2016? b. Ilow does this ratio compare Google, Samsung and Industry? c. If analyst give a range of higher than 20-25 for a stock to be considered overpriced and less than 5-8 for a stock to be considered underpriced, how is Apple doing? 10. Dividend Yield (page 564) (2 points) 2. What was Apple's Dividend Yield ratio for 2016? b. How does this ratio compare Google and Satusung? c. What does this tell you about Apple? Page A-2 APPLE September 26, 2015 $ Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 24, 2016 ASSETS Current assets Cash and cash equivalents $ 20,484 Short-term marketable securities 46,671 Accounts receivable, less allowances of $53 and $63, respectively 15,754 Inventories 2,132 Vendor non-trade receivables 13,545 Other current assets 8,283 Total current assets 106,869 Long-term marketable securities 170,430 Property, plant and equipment, net 27,010 Goodwill 5,414 Acquired intangible assets, nel 3,206 Other non-current assets 8,757 Total assets $ 321,686 21,120 20,481 16,849 2,349 13,494 15,085 89,378 164,065 22,471 5,116 3,893 5,422 290,345 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ Accrued expenses Deferred revenue Commercial paper Current portion of long-term debt Total current liabilities Deferred revenue, non-current Long-term debt Other non-current liabilities Total liabilities Commitments and contingencies Shareholders' equity Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 5,336,166 and 5,578,753 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income (loss) Total shareholders' equity Total liabilities and shareholders' cquity 37,294 22,027 8,080 8,105 3,500 79,006 2,930 75,427 36,074 193,437 35,490 25,181 8,940 8,499 2,500 80,610 3,624 53,329 33,427 170.990 31,251 96,364 634 128,249 321,686 27,416 92,284 (345) 119,355 290,345 See accompanying Notes to Consolidated Financial Statements. Page A-3 September 27, 2014 $ 182,795 112,258 70.537 Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) Years ended September 24, 2016 September 26, 2015 Nct sales 215,639 233,715 Cost of sales 131,376 140,089 Gross margin 84,263 93,626 Operating expenses Research and development 10,045 8,067 Selling, general and administrative 14,194 14,329 Total operating expenses 24,239 22,396 Operating income 60,024 71,230 Other income, net 1,348 1,285 Income before provision for income taxes 61,372 72,515 Provision for income taxes 15,685 19.121 Net income $ 45,687 S 53,394 6,041 11,993 18,034 52,503 980 53,483 13,973 39,510 S 9.28 S 8.35 8.31 $ S 6.49 6.45 9.22 Earnings per share: Basic Diluted Shares used in computing earnings per share: Basic Diluted Cash dividends declared per common share 5,470,820 5,500.281 2.18 5,753,421 5,793,069 1.98 6,085,572 6,122,663 1.82 $ S See accompanying Notes to Consolidated Financial Statements. September 27, 2014 $ 39,510 (137) 1,390 Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) Years ended September 24, 2016 September 26, 2015 Net income 45,687 $ 53,394 Other comprehensive income (loss): Change in foreign currency translation, net of tax effects of $8, $201 and $50, respectively (411) Change in unrealized gains/losses on derivative instruments: Change in fair value of derivatives, net of tax benefit (expense) of $(7), $(441) and $(297), respectively 2,905 Adjustment for net (gains) losses realized and included in net income, net of tax expense (benefit of $131, $630 and S(36), respectively (741) (3,497) Total change in unrealized gains/losses on derivative instruments, net of tax (734) (592) Change in unrealized gains/losses on marketable securities: Change in fair value of marketable securities, net of tax benefit (expense) of $(863), S264 and S(153), respectively 1,582 (483) Adjustment for net (gains) losses realized and included in net income. net of tax expense (benefit) of S(31). $(32) and $71, respectively 56 Total change in unrealized gains/losses on marketable securities, net of tax 1,638 (424) Total other comprehensive income (loss) 979 (1,427) Total comprehensive income 46,666 $ 51,967 149 1,539 285 (134) 151 1,553 See accompanying Notes to Consolidated Financial Statements. Page A-4 735 Apple Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In millions, except number of shares which are reflected in thousands) Accumulated Other Common Stock and Comprehensive Total Additional Paid-In Capital Retained Income Shareholders Shares Amount Earnings (Loss) Equity Balances as of September 28, 2013 6,294,494 19,764 104,256 (471) 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) Repurchase of common stock (488,677) (45,000) (45,000) Share-based compensation 2,863 2,863 Common stock issued, net of shares withheld for employee taxes 60,344 (49) (399) (448) Tax benefit from equity awards, including transfer pricing adjustments 735 Balances as of September 27, 2014 5,866,161 23,313 87,152 1,082 111,547 Nct income 53,394 53,394 Other comprehensive income (loss) - (1,427) (1,427) Dividends and dividend equivalents declared (11,627) (11,627) Repurchase of common stock (325,032) (36,026) (36,026) Share-based compensation 3,586 3,586 Common stock issued, net of shares withheld for employee taxes 37,624 (231) (609) (840) Tax benefit from equity awards, including transfer pricing adjustments 748 748 Balances as of September 26, 2015 5,578,753 27,416 92,284 (345) $ 119,355 Nel income 45,687 45,687 Other comprehensive income (loss) 979 979 Dividends and dividend equivalents declared (12,188) (12,188) Repurchase of common stock (279,609) (29,000) (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 Balances as of September 24, 2016 5,336,166 31,251 $ 96,364 128,249 11 | 379 .............. See accompanying Notes to Consolidated Financial Statements. Page A-5 September 27, 2014 S 14,259 39,510 7,946 2,863 2,347 (4,232) (76) (2,220) 167 5,938 1,460 6,010 59,713 Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) Years ended September 24, 2016 September 26, 2015 Cash and cash equivalents, beginning of the year $ 21,120 S 13,844 Operating activities: Net income 45,687 53,394 Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization 10,505 11,257 Share-based compensation expense 4,210 3,586 Deferred income tax expense 4,938 1,382 Changes in operating assets and liabilities: Accounts receivable, net 1,095 611 Inventories 217 (238) Vendor non-trade receivables (51) (3.735) Other current and non-current assets 1,090 (179) Accounts payable 1,791 5,400 Deferred revenue (1,554) 1,042 Other current and non-current liabilities (2,104) 8.746 Cash generated by operating activities 65,824 81,266 Investing activities: Purchases of marketable securities (142,428) (166,402) Proceeds from maturities of marketable securities 21,258 14,538 Proceeds from sales of marketable securities 90,536 107,447 Payments made in connection with business acquisitions, net (297) (343) Payments for acquisition of property, plant and equipment (12,734) (11,247) Payments for acquisition of intangible assets (814) (241) Payments for strategic investments (1,388) Other (110) Cash used in investing activities (45,977) (56,274) Financing activities: Proceeds from issuance of common stock 495 543 Excess tax benefits from equity awards 407 749 Payments for taxes related to net share settlement of equity awards (1,570) (1,499) Payments for dividends and dividend equivalents (12,150) (11,561) Repurchases of common stock (29,722) (35,253) Proceeds from issuance of term debt, net 24,954 27,114 Repayments of term debt (2,500) Change in commercial paper, net (397) 2,191 Cash used in financing activities (20,483) (17,716) Increase (decrease) in cash and cash equivalents (636) 7,276 Cash and cash equivalents, end of the year 20,484 (217,128) 18,810 189,301 (3,765) (9,571) (242) (10) 26 (22,579) (26) 730 739 (1,158) (11,126) (45,000) 11,960 6,306 (37,549) (415) 21.120 13,844 Supplemental cash flow disclosure: Cash paid for income taxes, net Cash paid for interest $ 10,444 1,316 $ S 13,252 514 $ $ 10,026 339 See accompanying Notes to Consolidated Financial Statements. V. Review Apple's Ratios Analysis for 2016 Page 559-564 (20 Points) Current Ratio (pages 559-560) (2 points) a. What was Apple's Current ratio in 2016 and 2015? b. How does this ratio compare to the industry. Google and Samsung? c. What guideline does the textbook author use to evaluate a company's dcblpaying ability? 2. Accounts Receivable Turnover (page 561) (2 points) a. What was Apple's Accounts Receivable Turnover ratio for 2016? b. How does this ratio compare to the industry, Google and Samsung? c. If the Accounts Receivable Turnover is generally in the range of 7 to 12, how is Apple doing? 3. Inventory Turnover (page 561) (2 points) a. What was Apple's Inventory turnover ratio for 2016? b. How does this ratio compare the industry, Google and Samsung? Days' Sales Uncollected (Pages 56) (2 points) a. What was Apple's Days' Sales Uncollected ratio for 2016? b. How does this ratio compare to Google and Samsung? c. If the Days' Sales Uncollected is generally in the range of 30 to 45, how is Apple doing? Days' Sales in Inventory (Page 562) (2 points) c. What was Apple's Days' Sales in Inventory ratio for 2016? d. How does this ratio compare the industry, Google and Samsung? Total Asset Turnover (page 561) (2 points) a. What was Apple's Total Assct Turnover ratio for 2016? b. How does this ratio compare to the industry, Google and Samsung? Debt-to-Equity (page 562) (2 points) 1 What was Apple's Debt-to-Equity ratio for 2016? b. Ilow does this ratio compare to the industry, Google and Samsung? c. What does this ratio tell you about Apples' cupital structure and risk? 8. Profit Margin (page 563) (2 points) a. What was Apple's Profit Margin ratio for 2016? b. How does this ratio compare to the industry, Google and Samsung? Price Earnings Ratio (pages 564) (2 points) a. What was Apple's Price-Lanuines Ratio for 2016? b. Ilow does this ratio compare Google, Samsung and Industry? c. If analyst give a range of higher than 20-25 for a stock to be considered overpriced and less than 5-8 for a stock to be considered underpriced, how is Apple doing? 10. Dividend Yield (page 564) (2 points) 2. What was Apple's Dividend Yield ratio for 2016? b. How does this ratio compare Google and Satusung? c. What does this tell you about Apple