forecasting preliminaries of Apple.

Auto Zoom 114 NALYSIS PROJECT (This ongoing project began in Module 1 and continues through most of the book, even if previous segments were not completed, the requirements are still applicable to any business analysis.) This module describes methods commonly used to forecast financial statements. The module shows how to forecast a complete set of financial statements (for one or more years). The module concludes with a parsimonious forecast of select balance sheet and income statement metrics. A project can include both types of forecasts. We can use the full set of financial statements to analyze the company's near-term future performance and position. We can then use the parsimonious forecast for longer-term forecasts as inputs for valuation models that estimate the company's stock price. Importantly, use a spreadsheet for the forecasting process. The SEC website has "interactive data" for annual reportsthese are spreadsheet-like arrays that can be copied into a spreadsheet. Also, many companies include on their investor relations page an Excel version of their financial statements. Define as many cells as possible with formulas, and reference income statement totals to the related balance sheet accounts. To balance the balance sheet, define the cash account to be equal to the difference between forecasted assets and liabilities plus stockholders' equity. 1. Forecasting Preliminaries Begin with the adjusted set of financial statements that reflect the com- pany's net operating assets and its operating income that we expect to persist into the future. This requires that we exclude one-time items and adjust other items to reflect anticipated levels of ongoing activities. drinathimnar forecasterinumhers. Be as Apple Inc. (Filer) CIK: 0000320193 12 Months Ended Sep. 28, 2019 Sep. 29, 2018 Sep. 30, 2017 $ 260,174 $ 265,595 $ 229,234 161,782 163,756 141,048 98,392 101,839 88,186 16,217 18,245 34,462 63,930 1,807 14,236 16,705 30,941 70,898 2,005 11,581 15,261 26,842 61,344 2,745 65,737 72,903 64,089 rint Document View Excel Document CONSOLIDATED STATEMENTS OF 10-K OPERATIONS - USD ($) shares in Thousands, $ in Millions Cover Net sales Cover Page Cost of sales Financial Statements Gross margin Operating expenses: CONSOLIDATED Research and development STATEMENTS OF OPERATIONS Selling general and administrative Total operating expenses CONSOLIDATED STATEMENTS OF Operating income COMPREHENSIVE Other income expense), not INCOME Income before provision for income taxes CONSOLIDATED BALANCE SHEETS Provision for income taxes Net income CONSOLIDATED Earnings per share: BALANCE SHEETS (Parenthetical) Basic (in dollars per share) Diluted (in dollars per share) CONSOLIDATED STATEMENTS OF Shares used in computing earnings SHAREHOLDERS' EQUITY per share: Basic (in shares) CONSOLIDATED Diluted in shares) STATEMENTS OF CASH Products FLOWS Net sales Notes to Financial Statements Cost of sales Accounting Policies Services Net sales Notes Tables Cost of sales Notes Details 10,481 $ 55,256 13,372 $ 59,531 15.738 $ 48,351 $ 11.97 $ 11.89 $ 12.01 $ 11.91 $ 9.27 $9.21 4,617,834 4,648,913 4,955.377 5,000,109 5.217.242 5.251,692 $ 213,883 144.996 $225,847 148,164 $ 196,534 126,337 46,291 $ 16,786 39,748 $ 15,592 32,700 $ 14,711 All Reports Apple Inc. (Filer) CIK: 0000320193 (see all company filings) IRS No.: 942404110 State of Incorp. CA Fiscal Year End: 0928 Apple Inc. (Filer) CIK: 0000320193 Print Document View Excel Document CONSOLIDATED BALANCE SHEETS- 10-K USD ($) Sep. 28, 2019 Sep. 29, 2018 Cover $ in Millions Current assets: Cover Page Cash and cash equivalents $ 48,844 $ 25,913 51,713 Marketable securities 40,388 Financial Statements 22,926 23,186 Accounts receivable, net CONSOLIDATED Inventories 4,106 3,956 STATEMENTS OF OPERATIONS Vendor non-trade receivables 22,878 25,809 Other current assets 12,352 12,087 CONSOLIDATED Total current assets 162,819 131,339 STATEMENTS OF COMPREHENSIVE Non-current assets: INCOME Marketable securities 105,341 170,799 37,378 Property, plant and equipment, net 41,304 CONSOLIDATED BALANCE SHEETS Other non-current assets 32,978 22,283 Total non-current assets 175,697 234,386 CONSOLIDATED Total assets 338,516 365,725 BALANCE SHEETS (Parenthetical) Current liabilities: Accounts payable 46,236 55,888 CONSOLIDATED Other current liabilities 37.720 STATEMENTS OF 33,327 SHAREHOLDERS' EQUITY Deferred revenue 5,522 5.966 Commercial paper 5,980 11,964 CONSOLIDATED STATEMENTS OF CASH Term debt 10,260 8,784 FLOWS Total current liabilities 105.718 115,929 Non-current liabilities: Notes to Financial Statements Term debt 91,807 93,735 Accounting Policies Other non-current liabilities 50,503 48,914 Total non-current liabilities Notes Tables 142,310 142,649 Total liabilities 248.028 258,578 Notes Details Commitments and contingencies Shareholders' equity: Common stock and additional paid in capital, $0.00001 par value: 12,600,000 shares authorized: 4,443,236 and 45,174 40,201 4,754,986 shares issued and outstanding, respectively Retained earnings 45,898 70,400 Accumulated other comprehensive Incomellos) (584) (3,454) Total shareholders' oquity 90,488 107,147 Total abilities and shareholders' equity $ 338,516 $365,725 All Reports (8.805) (6,500) (3,500) 3,852 (37) (5.977) (105) (90,976) 0 (87,876) (17,974) Repayments of term debt Proceeds from Repayments of) commercial paper, net Other Cash used in financing activities Increase (Decrease in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash, ending balances Supplemental cash flow disclosure: Cash paid for income taxes, net Cash paid for interest 24.311 5,624 (195) 50,224 25.913 20.280 873 15,263 $3,423 10.417 $ 3,092 11,501 $ 2,092 CONSOLIDATED STATEMENTS OF 12 Months Ended CASH FLOWS - USD ($) Sin Millions Sep. 28, 2019 Sep 29, 2018 Sep. 30, 2017 Statement of Cash Flows [Abstract) Cash, cash equivalents and restricted $ 25,913 $20.289 $ 20,484 cash, beginning balances Operating activities: Not income 55.256 59,531 48,351 Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization 12,547 10.903 10,157 Share-based compensation expense 6,068 5.340 4,840 Deferred income tax expense benefit (340) (32.590) 5.966 Other (652 (444) (166) Changes in operating assets and liabilities: Acoounts receivable, not 245 (5,322) (2,093) Inventories (289) 828 (2.723) Vendor non-trade receivables 2,931 18,010) (4.254 Other current and non-current assets (423) (5.318) Accounts payable (1.923) 9,175 8.900 Dermed revenue (825) (3) (503) Other current and non-current liabilities (4.700) 38,449 1,092 Cash generated by operating activities 89,391 77434 54 225 Investing activities: Purchases of marketable securities (39.630) (71.356) (159486) Proceeds from maturties of marketable securities 40,102 55.881 31.775 Proceeds from sales of marketable securities 56.988 47 638 94.564 Payments for wogulition of property plant and equipment (10.405) (13313) (12.451) Payments made in connection with business acquisitions, not (624) (721) (329) Purchases of romanable securities (1,001 (1.871) (521) Proceeds from non-marketable securities 1,634 353 Other (1,078) (124) Cash generated by used in investing activities 45.696 16.000 (46:446) Financing activities: Proceeds from lasuance of common Stock 781 O 655 Payment for mere nature of equity and (2.577) (1.674 Payments for avonds and dividend 14,119 13.712 12760 Repurchase of common stock 06. 32.900 Proceede romance of detit net Reports of forme K: 0000320193 (see all company filings) te of incorp CA Fiscal Year End 0928 No: 001-36743 Film No 191181423 puter of Technology Viewer Auto Zoom 114 NALYSIS PROJECT (This ongoing project began in Module 1 and continues through most of the book, even if previous segments were not completed, the requirements are still applicable to any business analysis.) This module describes methods commonly used to forecast financial statements. The module shows how to forecast a complete set of financial statements (for one or more years). The module concludes with a parsimonious forecast of select balance sheet and income statement metrics. A project can include both types of forecasts. We can use the full set of financial statements to analyze the company's near-term future performance and position. We can then use the parsimonious forecast for longer-term forecasts as inputs for valuation models that estimate the company's stock price. Importantly, use a spreadsheet for the forecasting process. The SEC website has "interactive data" for annual reportsthese are spreadsheet-like arrays that can be copied into a spreadsheet. Also, many companies include on their investor relations page an Excel version of their financial statements. Define as many cells as possible with formulas, and reference income statement totals to the related balance sheet accounts. To balance the balance sheet, define the cash account to be equal to the difference between forecasted assets and liabilities plus stockholders' equity. 1. Forecasting Preliminaries Begin with the adjusted set of financial statements that reflect the com- pany's net operating assets and its operating income that we expect to persist into the future. This requires that we exclude one-time items and adjust other items to reflect anticipated levels of ongoing activities. drinathimnar forecasterinumhers. Be as Apple Inc. (Filer) CIK: 0000320193 12 Months Ended Sep. 28, 2019 Sep. 29, 2018 Sep. 30, 2017 $ 260,174 $ 265,595 $ 229,234 161,782 163,756 141,048 98,392 101,839 88,186 16,217 18,245 34,462 63,930 1,807 14,236 16,705 30,941 70,898 2,005 11,581 15,261 26,842 61,344 2,745 65,737 72,903 64,089 rint Document View Excel Document CONSOLIDATED STATEMENTS OF 10-K OPERATIONS - USD ($) shares in Thousands, $ in Millions Cover Net sales Cover Page Cost of sales Financial Statements Gross margin Operating expenses: CONSOLIDATED Research and development STATEMENTS OF OPERATIONS Selling general and administrative Total operating expenses CONSOLIDATED STATEMENTS OF Operating income COMPREHENSIVE Other income expense), not INCOME Income before provision for income taxes CONSOLIDATED BALANCE SHEETS Provision for income taxes Net income CONSOLIDATED Earnings per share: BALANCE SHEETS (Parenthetical) Basic (in dollars per share) Diluted (in dollars per share) CONSOLIDATED STATEMENTS OF Shares used in computing earnings SHAREHOLDERS' EQUITY per share: Basic (in shares) CONSOLIDATED Diluted in shares) STATEMENTS OF CASH Products FLOWS Net sales Notes to Financial Statements Cost of sales Accounting Policies Services Net sales Notes Tables Cost of sales Notes Details 10,481 $ 55,256 13,372 $ 59,531 15.738 $ 48,351 $ 11.97 $ 11.89 $ 12.01 $ 11.91 $ 9.27 $9.21 4,617,834 4,648,913 4,955.377 5,000,109 5.217.242 5.251,692 $ 213,883 144.996 $225,847 148,164 $ 196,534 126,337 46,291 $ 16,786 39,748 $ 15,592 32,700 $ 14,711 All Reports Apple Inc. (Filer) CIK: 0000320193 (see all company filings) IRS No.: 942404110 State of Incorp. CA Fiscal Year End: 0928 Apple Inc. (Filer) CIK: 0000320193 Print Document View Excel Document CONSOLIDATED BALANCE SHEETS- 10-K USD ($) Sep. 28, 2019 Sep. 29, 2018 Cover $ in Millions Current assets: Cover Page Cash and cash equivalents $ 48,844 $ 25,913 51,713 Marketable securities 40,388 Financial Statements 22,926 23,186 Accounts receivable, net CONSOLIDATED Inventories 4,106 3,956 STATEMENTS OF OPERATIONS Vendor non-trade receivables 22,878 25,809 Other current assets 12,352 12,087 CONSOLIDATED Total current assets 162,819 131,339 STATEMENTS OF COMPREHENSIVE Non-current assets: INCOME Marketable securities 105,341 170,799 37,378 Property, plant and equipment, net 41,304 CONSOLIDATED BALANCE SHEETS Other non-current assets 32,978 22,283 Total non-current assets 175,697 234,386 CONSOLIDATED Total assets 338,516 365,725 BALANCE SHEETS (Parenthetical) Current liabilities: Accounts payable 46,236 55,888 CONSOLIDATED Other current liabilities 37.720 STATEMENTS OF 33,327 SHAREHOLDERS' EQUITY Deferred revenue 5,522 5.966 Commercial paper 5,980 11,964 CONSOLIDATED STATEMENTS OF CASH Term debt 10,260 8,784 FLOWS Total current liabilities 105.718 115,929 Non-current liabilities: Notes to Financial Statements Term debt 91,807 93,735 Accounting Policies Other non-current liabilities 50,503 48,914 Total non-current liabilities Notes Tables 142,310 142,649 Total liabilities 248.028 258,578 Notes Details Commitments and contingencies Shareholders' equity: Common stock and additional paid in capital, $0.00001 par value: 12,600,000 shares authorized: 4,443,236 and 45,174 40,201 4,754,986 shares issued and outstanding, respectively Retained earnings 45,898 70,400 Accumulated other comprehensive Incomellos) (584) (3,454) Total shareholders' oquity 90,488 107,147 Total abilities and shareholders' equity $ 338,516 $365,725 All Reports (8.805) (6,500) (3,500) 3,852 (37) (5.977) (105) (90,976) 0 (87,876) (17,974) Repayments of term debt Proceeds from Repayments of) commercial paper, net Other Cash used in financing activities Increase (Decrease in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash, ending balances Supplemental cash flow disclosure: Cash paid for income taxes, net Cash paid for interest 24.311 5,624 (195) 50,224 25.913 20.280 873 15,263 $3,423 10.417 $ 3,092 11,501 $ 2,092 CONSOLIDATED STATEMENTS OF 12 Months Ended CASH FLOWS - USD ($) Sin Millions Sep. 28, 2019 Sep 29, 2018 Sep. 30, 2017 Statement of Cash Flows [Abstract) Cash, cash equivalents and restricted $ 25,913 $20.289 $ 20,484 cash, beginning balances Operating activities: Not income 55.256 59,531 48,351 Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization 12,547 10.903 10,157 Share-based compensation expense 6,068 5.340 4,840 Deferred income tax expense benefit (340) (32.590) 5.966 Other (652 (444) (166) Changes in operating assets and liabilities: Acoounts receivable, not 245 (5,322) (2,093) Inventories (289) 828 (2.723) Vendor non-trade receivables 2,931 18,010) (4.254 Other current and non-current assets (423) (5.318) Accounts payable (1.923) 9,175 8.900 Dermed revenue (825) (3) (503) Other current and non-current liabilities (4.700) 38,449 1,092 Cash generated by operating activities 89,391 77434 54 225 Investing activities: Purchases of marketable securities (39.630) (71.356) (159486) Proceeds from maturties of marketable securities 40,102 55.881 31.775 Proceeds from sales of marketable securities 56.988 47 638 94.564 Payments for wogulition of property plant and equipment (10.405) (13313) (12.451) Payments made in connection with business acquisitions, not (624) (721) (329) Purchases of romanable securities (1,001 (1.871) (521) Proceeds from non-marketable securities 1,634 353 Other (1,078) (124) Cash generated by used in investing activities 45.696 16.000 (46:446) Financing activities: Proceeds from lasuance of common Stock 781 O 655 Payment for mere nature of equity and (2.577) (1.674 Payments for avonds and dividend 14,119 13.712 12760 Repurchase of common stock 06. 32.900 Proceede romance of detit net Reports of forme K: 0000320193 (see all company filings) te of incorp CA Fiscal Year End 0928 No: 001-36743 Film No 191181423 puter of Technology Viewer