Identify the single largest adjustment (in absolute value) to reconcile net income to operating cash flow in the most recent year of Apple's statement of cash flows. Describe how and why the item arises (broadly describe how it creates a disconnect between income and cash flows for your company). Assess the risk (low/medium/high) that this item adversely affects the company's earnings quality in the most recent year. Justify your answer.

Menu Sections | Search Facts Q Data Tags T More Filters Facts 1,185 Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) Years ended September 25, September 26, September 28, 2021 2020 2019 Cash, cash equivalents and restricted cash, beginning balances 39,789 $ 0,224 $ 5,913 Operating activities: Net income 94,680 57,411 55,25 Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization 11,284 11,056 12,547 Share-based compensation expense 7,906 6,829 6,068 Deferred income tax benefi (4,774 (215) (340 Other (147) (97) 652) Changes in operating assets and liabilities: Accounts receivable, net (10,125) 6,917 245 Inventories (2,642) (127) (289 Vendor non-trade receivables (3,903 1,55 2,93 Other current and non-current assets (8,042 9,588 873 Accounts payable 12,326 4,062 (1,923 Deferred revenue 1,67 2,08 (625 Other current and non-current liabilities 5,799 8,916 4,700 Cash generated by operating activities 104,038 80,674 39,391 Investing activities Purchases of marketable securities (109,558) (114,938) (39,630) Proceeds from maturities of marketable securities 59,023 69,918 40,102 Proceeds from sales of marketable securities 47,460 50,473 56,988 Payments for acquisition of property, plant and equipment (11,085) (7,309) (10,495) Payments made in connection with business acquisitions, net (33) 1,524 (624) Purchases of non-marketable securities 131) (210) (1,001) Proceeds from non-marketable securities 387 92 1,634 Other 608 (791) (1,078 Cash generated by/(used in) investing activities (14,545) (4,289) 45,896 Financing activities: Proceeds from issuance of common stock 1,105 880 781 Payments for taxes related to net share settlement of equity awards (6,556) 3,634) (2,817) Payments for dividends and dividend equivalents (14,467) (14,081) (14,119) Repurchases of common stock (85,971) (72,358) (66,897 Proceeds from issuance of term debt, net 20,39 16,091 6,963 Repayments of term debt (8,750 (12,629) (8,805) Proceeds from/(Repayments of) commercial paper, net 1,022 (963) (5,977 Other (129 (126) (105) Cash used in financing activities 93,353) (86,820) 90,976) Increase/(Decrease) in cash, cash equivalents and restricted cash 3,860) 10,435) 24,311 Cash, cash equivalents and restricted cash, ending balances 35,929 39,789 0,224 Supplemental cash flow disclosure: Cash paid for income taxes, net 25,385 $ 9,501 15,26 Cash paid for interest 2,687 3,002 3,42 See accompanying Notes to Consolidated Financial Statements. Apple Inc. I 2021 Form 10-K | 33