HO-2: Identifying relevant assertions D Review the select balance sheet and income statement for Apple, Inc. (found in the 10-K). For the account assigned to you (see below on assignments), identify assertions that you think are relevant for the assigned accounts. Cash Inventories Accounts Payable Revenues Net sales: Products Services Total net sales Cost of sales Products Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except number of shares which are reflected in thousands and per share amounts) Services Total cost of sales Gross margin Operating expenses Research and development Selling, general and administrative Total operating expenses Years ended September 28, 2019 September 29, 2018 September 30, 2017 $ 213,883 $ 46,291 225,847 39,748 $ 260,174 265.595 196,534 32,700 229,234 144,996 148,164 126,337 16,786 15,592 14,711 161,782 163,756 141,048 98,392 101,839 68,186 16.217 14,236 11,581 18,245 16,705 15.261 34,462 30,941 26,842 Operating income 63,930 70,898 61,344 Other income/jexpense), net 1,807 2,005 2,745 Income before provision for income taxes 65,737 72.903 64,089 Provision for income taxes 10,481 13,372 15,738 Net income $ 55,256 $ 59,531 48,351 Earnings per share: Earnings per share: Basic Dluted Shares used in computing eamings per share: Basic Diluted Net income 11.97 $ 12.01 $ 9.27 11.89 $ 11.91 S 9.21 4,617,834 4,955,377 5,217,242 4,648,913 5,000,109 5,251,692 See accompanying Notes to Consolidated Financial Statements. Apple Inc. | 2019 Form 10-K | 29 Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) Other comprehensive income/(loss) Change in foreign currency translation, net of tax Change in unrealized gains/losses on derivative instruments, net of tax Change in fair value of derivatives Adjustment for net (gains)/losses realized and included in net income Total change in unrealized gains/losses on derivative instruments Change in unrealized gains/losses on marketable securities, net of tax Change in fair value of marketable securities September 28, 2019 Years ended September 29, 2018 September 30, 2017 55,256 59.531 48,351 (408) (525) 224 (661) 523 1,315 23 382 (1,477) (638) 905 (162) 3802 13 407) 17831 Change in unrealized gains/losses on marketable securities, net of tax Change in fair value of marketable securities Adjustment for net (gains)/losses realized and included in net income Total change in unrealized gains/tosses on marketable securities Total other comprehensive income/oss) Total comprehensive income 3,802 (3,407) (782) 25 (64) 3,827 (3.406) (846) 2,7811 (3,026) (784) $ 58,037 $ 56.505 $ 47,567 See accompanying Notes to Consolidated Financial Statements Apple Inc. | 2019 Form 10-K 130 CONSOLIDATED BALANCE SHEETS (in millions, except number of shares which are reflected in thousands and par value) 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 ASSETS: September 28, 2019 September 29, 2018 48,844 $ 25,913 51,713 40,388 22.926 23,186 4,106 3,956 22,878 25,809 12.352 12,087 162,819 131,339 105,341 170,700 37,378 41.304 32.978 22.283 175,697 234,386 Total non-cument assets Total assets Current lab@ties: Accounts payable Other cument labies Deferred revenue Commercial paper Term debt Total current liabilties Non-current labies: Tem debt Other non-current liabilities Total non-current abilities Total liabilities Commitments and contingencies Shareholders' equity 175.607 234.386 338,516 365,725 LIABILITIES AND SHAREHOLDERS' EQUITY: 46,236 S 55,888 37,720 33.327 5,522 5,960 5,980 11,964 10.260 8,784 105,718 115,929 91,807 93,735 50,503 48.914 142.310 142,649 248,028 258,578 Common stock and additional paid-in capital, $0.00001 par value: 12.600,000 shares authorized; 4,443,238 and 4,754,986 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income/(loss) 45,174 40,201 45.898 70,400 (584) 0.454) Total shareholders' equity 90,488 107,147 Total liabilities and shareholders' equity $ 338.516 $ 365.725 See accompanying Notes to Consolidated Financial Statements Apple Inc. 12019 Frem 10-K 131 Total shareholders' equity, beginning balances $ Years ended September 28, 2019 September 23, 2018 September 30, 2017 107,147 $ 134,047 128.249 Common stock and additional paid-in capital: Beginning balances 40.201 35.867 31,251 Common stock issued 781 669 Common stock withheld related to net share settlement of equity awards Share-based compensation (2,002) (1,778) 555 (1,468) 6,194 5,443 4,909 Tax benefit from equity awards, including transfer pricing adjustments Ending balances 620 45,174 40,201 35.867 Retained earnings Beginning balances 70,400 98,330 96,364 Net income 55,256 59.531 48,351 Dividends and dividend equivalents declared (14,129) (13,735) (12,803) Common stock withheld related to net share settlement of equity awards (1,029) (948) Common stock repurchased (67,101) (73,056) (581) (33,001) Cumulative effects of changes in accounting principles 2,501 278 Ending balances 45,898 70,400 98,330 Accumulated other comprehensive income(loss) Beginning balances Other comprehensive income/(loss) Cumulative effects of changes in accounting principles Ending balances Total shareholders' equity, ending balances (3.454) (150) 634 2,781 (3.026) (784) 89 (278) (584) (3,454) (150) 90,488 $ 107,147 134,047