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?

Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions) September 26, 2020 Years ended September 28, 2019 September 29, 2018 $ $ S 220,747 53,768 274,515 213,883 46,291 260,174 225,847 39,748 265,595 151,286 18,273 169,559 104,956 144,996 16,786 161,782 98,392 148,164 15,592 163,756 101,839 Net sales: Products Services Total net sales Cost of sales: Products Services Total cost of sales Gross margin Operating expenses: Research and development Selling, general and administrative Total operating expenses Operating income Other income/expense), net Income before provision for income taxes Provision for income taxes Net income 18,752 19,916 38,668 66,288 803 16,217 18,245 34,462 63,930 1,807 65,737 10,481 55,256 14,236 16,705 30,941 70,898 2,005 72,903 13,372 59,531 67,091 9,680 57,411 See accompanying Notes to Consolidated Financial Statements. Apple Inc. 2020 Form 10-K September 29, 2018 20,289 59,531 Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (partial) (In millions) Years ended September 26, September 28, 2020 2019 Cash, cash equivalents and restricted cash, beginning balances 50,224 25,913 Operating activities: Net income 57,411 55,256 Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization 11,056 12.547 Share-based compensation expense wa 6,829 6,068 Deferred income tax benefit (215) (340) Other (97) (652) Changes in operating assets and liabilities: Accounts receivable, net 6,917 245 Inventories (127) (289) Vendor non-trade receivables 1,553 Other current and non-current assets (9,588) 873 Accounts payable (4,062) (1,923) Deferred revenue 2,081 Other current and non-current liabilities 8.916 (4,700) Cash generated by operating activities 80,674 69,391 See accompanying Notes to Consolidated Financial Statements. Apple Inc. 2020 Form 10-K 10,903 5,340 (32,590) (444) 2,931 (5,322) 828 (8,010) (423) 9,175 (3) 38,449 77,434 (625) Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 26, 2020 September 28, 2019 ASSETS: $ $ Current assets: 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 38,016 52,927 16,120 4,061 21,325 11,264 143,713 48,844 51,713 22,926 4,106 22,878 12,352 162,819 100,887 36,766 42,522 180,175 323,888 105,341 37,378 32,978 175,697 338,516 $ $ 42,296 42,684 6,643 4,996 8,773 105,392 46,236 37,720 5,522 5,980 10,260 105,718 LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities: Accounts payable $ Other current liabilities Deferred revenue Commercial paper Term debt Total current liabilities Non-current liabilities: Term debt Other non-current liabilities Total non-current liabilities Total liabilities Commitments and contingencies Shareholders' equity: Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 16,976,763 and 17,772,945 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income/loss) Total shareholders' equity Total liabilities and shareholders' equity 98,667 54,490 153,157 258,549 91,807 50,503 142,310 248,028 50,779 14,966 (406) 65,339 323,888 45,174 45,898 (584) 90,488 338,516 $ See accompanying Notes to Consolidated Financial Statements. Apple Inc. 2020 Form 10-K Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions) September 26, 2020 Years ended September 28, 2019 September 29, 2018 $ $ S 220,747 53,768 274,515 213,883 46,291 260,174 225,847 39,748 265,595 151,286 18,273 169,559 104,956 144,996 16,786 161,782 98,392 148,164 15,592 163,756 101,839 Net sales: Products Services Total net sales Cost of sales: Products Services Total cost of sales Gross margin Operating expenses: Research and development Selling, general and administrative Total operating expenses Operating income Other income/expense), net Income before provision for income taxes Provision for income taxes Net income 18,752 19,916 38,668 66,288 803 16,217 18,245 34,462 63,930 1,807 65,737 10,481 55,256 14,236 16,705 30,941 70,898 2,005 72,903 13,372 59,531 67,091 9,680 57,411 See accompanying Notes to Consolidated Financial Statements. Apple Inc. 2020 Form 10-K September 29, 2018 20,289 59,531 Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (partial) (In millions) Years ended September 26, September 28, 2020 2019 Cash, cash equivalents and restricted cash, beginning balances 50,224 25,913 Operating activities: Net income 57,411 55,256 Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization 11,056 12.547 Share-based compensation expense wa 6,829 6,068 Deferred income tax benefit (215) (340) Other (97) (652) Changes in operating assets and liabilities: Accounts receivable, net 6,917 245 Inventories (127) (289) Vendor non-trade receivables 1,553 Other current and non-current assets (9,588) 873 Accounts payable (4,062) (1,923) Deferred revenue 2,081 Other current and non-current liabilities 8.916 (4,700) Cash generated by operating activities 80,674 69,391 See accompanying Notes to Consolidated Financial Statements. Apple Inc. 2020 Form 10-K 10,903 5,340 (32,590) (444) 2,931 (5,322) 828 (8,010) (423) 9,175 (3) 38,449 77,434 (625) Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 26, 2020 September 28, 2019 ASSETS: $ $ Current assets: 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 38,016 52,927 16,120 4,061 21,325 11,264 143,713 48,844 51,713 22,926 4,106 22,878 12,352 162,819 100,887 36,766 42,522 180,175 323,888 105,341 37,378 32,978 175,697 338,516 $ $ 42,296 42,684 6,643 4,996 8,773 105,392 46,236 37,720 5,522 5,980 10,260 105,718 LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities: Accounts payable $ Other current liabilities Deferred revenue Commercial paper Term debt Total current liabilities Non-current liabilities: Term debt Other non-current liabilities Total non-current liabilities Total liabilities Commitments and contingencies Shareholders' equity: Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 16,976,763 and 17,772,945 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income/loss) Total shareholders' equity Total liabilities and shareholders' equity 98,667 54,490 153,157 258,549 91,807 50,503 142,310 248,028 50,779 14,966 (406) 65,339 323,888 45,174 45,898 (584) 90,488 338,516 $ See accompanying Notes to Consolidated Financial Statements. Apple Inc. 2020 Form 10-K