Excerpts from Apples financial statements, from their September 26, 2020 10-K are presented. Treat each item below independently, Watch the dates on the statements. The year 2020 means the year ended September 26, 2020. Like the statements, all numbers are in millions of dollars.

1) On September 10^th, 2020, Apple delivered a large shipment of iPhones to Verizon, a distributer. The goods had a cost, to Apple, of $240. Verizon paid $40 on delivery, and agreed to pay Apple an additional $400 during December, 2020. Based on previous experience, Apple expected that 0.5% of total amounts sold on credit would not be collected. Apple made no entry regarding this transaction during fiscal year 2020. Ignore tax effects.

If needed adjustments were made to correct the error, what would be the reported amounts (not just the effect) for:

a) Net income for the year ended September 26, 2020?

b) Total assets as of September 26, 2020?

 

 c) Cash generated by operating activities for the year ended September 26, 2020? 

4 Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions) Years ended September 26, 2020 September 28, 2019 September 29, 2018 Net sales: Products Services Total net sales Cost of sales: Products Services Total cost of sales Gross margin $ 220,747 $ 213,883 $ 225,847 53,768 46,291 39,748 274,515 260,174 265,595 151,286 144,996 148,164 18,273 16,786 15,592 169,559 161,782 163,756 104,956 98,392 101,839 Operating expenses: Research and development 18,752 16,217 14,236 Selling, general and administrative 19,916 18,245 16,705 Total operating expenses 38,668 34,462 30,941 Operating income 66,288 63,930 70,898 Other income/(expense), net 803 1,807 2,005 Income before provision for income taxes 67,091 65,737 72,903 Provision for income taxes 9,680 10,481 13,372 Net income $ 57,411 $ 55,256 $ 59,531 See accompanying Notes to Consolidated Financial Statements. Apple Inc. | 2020 Form 10-K Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (partial) (In millions) September 26, 2020 Years ended September 28, 2019 September 29, 2018 Cash, cash equivalents and restricted cash, beginning balances $ 50,224 $ 25,913 $ 20,289 Operating activities: Net income 57,411 55,256 59,531 Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization 11,056 12,547 10,903 Share-based compensation expense 6,829 6,068 5,340 Deferred income tax benefit (215) (340) (32,590) Other Changes in operating assets and liabilities: Accounts receivable, net Inventories Vendor non-trade receivables Other current and non-current assets Accounts payable Deferred revenue (97) (652) (444) 6,917 245 (5,322) (127) (289) 828 1,553 2,931 (8,010) (9,588) 873 (423) (4,062) (1,923) 9,175 2,081 (625) (3) Other current and non-current liabilities Cash generated by operating activities 8,916 (4,700) 38,449 80,674 69,391 77,434 See accompanying Notes to Consolidated Financial Statements. Apple Inc. | 2020 Form 10-K