Expand Your Critical Thinking 13-1 (Part Level Submission) accounting expert, to make an analysis of the company for them. Financial statements of Apple are presented in Appendix A Your parents are considering investing in Apple Inc. common stock. They ask you, as Click here to view Appendix A Ansver the following questions. (a1) Make a 5-year trend analysis, using 2010 as the base year, of (1) net sales and (2) net income. (Round percentages to 0 decimalplaces, e.g. 15% and enter amounts in millions.) APPLE INC. Trend Analysis of Net Sales and Net Income Five Years E 2014 Fi 3012 2011 2014 2011 2010 (1) Net sales 108249 182795 170910 156508 Trend (2) Net income Trend Modify Show Work click if you would like to Show Work for this question: CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) Years ended September 27, 2014 September 28, 2013 September 29, 2012 Net income 39,510 37,037 41,733 Other comprehensive income/loss): Change in foreign currency translation, net of tax effects of $50, $35 and $13, respectively (137) (112) (15) Change in unrecognized gains/losses on derivative instruments: Change in fair value of derivatives, net of tax benefit/(expense) of S(297), $1351) and $73, respectively 1,390 522 (131) Adjustment for net losses/(gains) realized and included in net income, net of tax expense/(benefit) of $(36), $255 and $220, respectively 149 (458) (399) Total change in unrecognized gains/osses on derivative instruments, net of tax 1,539 64 (530) Change in unrealized gainsMosses on marketable securities: Change in fair value of marketable securities, net of tax benefit/ (expense) of $(153), $458 and $(42 1), respectively 285 (791) 715 Adjustment for net losses/(gains) realized and included in net income, net of tax expense/benetit) of $71, $82 and $68, respectively (134) (131) (114) Total change in unrealized gains/losses on marketable securities net of tax 151 (922) 601 Total other comprehensive income/(loss) 1,553 (970) 56 Total comprehensive income S 41,789 41,063 36,067 A CONSOLIDATED BALANCE SHEETS (In milions, except number of shares which are reflected in thousands and par value) September 27, 2014 September 28, 2013 ASSETS Current assets: $ Cash and cash equivalents 13.844 14,259 Short-term marketable securities 11,233 26,287 Accounts receivable, less allowances of $86 and $99, respectively 17,460 13,102 Inventories 2,111 1,764 Deferred tax assets 4.318 3,453 Vendor non-trade receivables 9,759 7,539 Other current assets 9,806 6,882 Total current assets 68,531 73,286 Long-term marketable securities 130.162 106.215 Property, plant and equipment, net 20,624 16,597 Goodwil 4,616 1,577 Acquired intangible assets, net 4,142 4,179 Other assets 3,764 5,146 $ 231,839 $ 207,000 Total assets LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities Accounts payable $ 30.196 22,367 Accrued expenses 18.453 13,856 Deferred revenue 8,491 7,435 Commercial paper 6,308 C Total current liabilities 63.448 43,658 Deferred revenue -non-current 2,625 3.031 Long-term debt 28,987 16,960 Other non-current liabilities 24,826 20,208 Total liabilities 120,292 83,451 Commitments and contingencies Shareholders' equity: Common stock and additional paid-in capital, $0.00001 par value; 12,600,000 shares authorized; 5,866,161 and 6,294,494 shares issued and outstanding, respectively 23,313 19,764 Retained earnings 87,152 104,256 Accumulated other comprehensive income/loss) 1,082 (471) Total shareholders' equity 111,547 123,549 Total liabilities and shareholders' equity 231,839 $ 207,000 CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In millions, except number of shares which are reflected in thousands) Accumulated Other Comprehensive Shareholders Income/Loss) Common Stock and Additional Paid-In Capital Total Retained Earnings Shares Amount Equity Balances as of September 24, 2011 $ 62.841 6.504,937 13,331 $76,615 443 41,733 Net income 0 41,733 Other comprehensive income/(loss) C 56 56 Dividends and dividend equivalents declared 0 (2,523) (2,523) Share-based compensation 1,740 1,740 Common stock issued, net of shares withheld for employee taxes (562) 69.521 200 (762) Tax benefit from equity awards, including transfer pricing adjustments 0 1,15 1,151 Balances as of September 29, 2012 6,574,458 16,422 101,289 499 118,210 37.037 Net income 0 37,037 Other comprehensive income/oss) (970) 0 (970) Dividends and dividend equivalents declared (10,676 (10,676) C epurchas e of common stock (328.837) (22.950) 0 (22,950) Share-based compensation 2,253 2,253 Common stock issued, net of shares withheld for employee taxes 48,873 (143) (444) 587) Tax benefit from equity awards, indluding transfer pricing adjustments 0 1,232 1,232 Balances as of September 28, 2013 104.256 (471) 123.549 6,294,494 19,764 Net income 39,510 39,510 Other comprehensive income/loss) 0 C 1,553 1,553 (11,215) Dividends and dividend equivalents declared C (11,215) Repurchase of common stock (45,000) (45,000) (488,677) Share-based compensation 0 2,863 2,863 Common stock issued, net of shares (448) withheld for employee taxes 60.344 (49) (399) 0 Tax benefit from equity awards, including transfer pricing adjustments 735 735 $ 23,313 $ 87,152 Balances as of September 27, 2014 $111,547 5,866,161 1,082 See accompanying Notes to Consolidated Financial Statements CONSOLIDATED STATEMENTS OF CASH FLOWS (In milions) Years ended September 27, 2014 September 28, 2013 September 29, 2012 S 14,259 Cash and cash equivalents, beginning of the year 10.746 9,815 Operating activities: Net income 39,510 37,037 41,733 Adjustments to reconcile net income to cash generated by operating activities: 7,946 6,757 3,277 epreciation and amortization hare based compensation e pense 2,863 2,253 1,740 eferred income ta e pense 2,347 1,141 4,405 Changes in operating assets and liabilities: (2,172 Accounts receivable, net (4,232) (5,551) Inventories (76) (973) (15) (1,414) endor non trade receivables (2,220) 223 Other current and non current assets (3,162) 167 1.080 Accounts payable 5,938 4,467 2,340 Deferred revenue 1,460 1,459 2,824 Other current and non-current liabilities 6,010 4,52 2,552 50,856 Cash generated by operating activities 59,713 53,666 Investing activities urchases of mar etable securities (217,128) (148,489) (151,232) roceeds from maturities of mar etable securities 18.810 20.317 13,035 189,301 Proceeds from sales of mar etable securities 104,130 99,770 Payments made in connection with business acquisitions, net (3.765) (496) (350) (8,295) Payments for acquisition of property, plant and equipment (9,571) (8,165) Payments for acquisition of intangible assets (242) (911) (1,107) (48) Other 16 (160) Cash used in investing activities (48,227) (22,579) (33,774) Financing activities: Proceeds from issuance of common stock 730 530 665 xcess tax benefits from equity awards 739 701 1,351 axes paid related to net share settlement of equity awards (1,158) (1,082) (1,226) Dividends and dividend equivalents paid (11,126 (2,488) (10,564) 0 epurchase of common stock (45,000) (22,860) 16,896 Proceeds from issuance of long-term debt, net 11,960 0 Proceeds from issuance of commercial paper, net 6,306 0 C (37,549) (16,379 Cash used in financing activities (1,698) Increase/idecrease) in cash and cash equivalents (415) 3,513 931 $ 10,746 Cash and cash equivalents, end of the year $14,259 13,844 Supplemental cash flow disclosure: Cash paid for income taxes, net S10,026 $ 9,128 7,682 Cash paid for interest 339 0 0