June 2021

1) Prepare a liquidity analysis by computing and using the appropriate ratios to assess liquidity

Compute a minimum of three ratios and show your supporting calculations

2) Prepare a solvency analysis by computing and using the appropriate ratios to assess solvency

Compute a minimum of three ratios and show your supporting calculations.

3)Prepare a profitability analysis by computing and using the appropriate ratios to assess profitability

Compute a minimum of three ratios and show your supporting calculations.

Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In millions, except number of shares which are reflected in thousands and per share amounts) Three Months Ended June 26. 2021 June 27 2020 Nine Months Ended June 26, June 27, 2021 2020 Net sales: Products $ $ 63,948 17,486 46,529 13,156 59,685 Services 232,309 $ 50,148 282,457 170,598 39,219 Total net sales 81,434 209.817 Cost of sales: Products 40,899 5,280 149,476 15,319 Services 32,693 4,312 37,005 22,680 116,089 13,461 129,550 80.267 Total cost of sales 164,795 46,179 35,255 Gross margin 117,662 Operating expenses: Research and development Selling, general and administrative Total operating expenses 5,717 5,412 4,758 4,831 16,142 16,357 32,499 13,774 14,980 11,129 9,589 28.754 Operating income Other income/expense), net Income before provision for income taxes 13,091 46 51,513 677 24.126 243 24,369 2,625 85,163 796 85,959 11,830 74,129 $ 13,137 1,884 52,190 Provision for income taxes 7,452 Net income $ 21.744 11.253 44.738 Earnings per share: Basic $ $ $ 1.31 1.30 0.65 0.65 4.42 $ 4.38 $ 2.56 2.54 Diluted $ $ Shares used in computing earnings per share: Basic 17,250,291 16,772,656 16,629,371 16.781,735 17,450,284 17,618,778 Diluted 17,419,154 16,941,527 Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (In millions) Three Months Ended Nine Months Ended June 27 June 26, 2021 June 26, 2021 June 27 2020 2020 $ 21.744 $ 11,253 $ 74,129 $ 44,738 Net income Other comprehensive income/loss): Change in foreign currency translation, net of tax 188 194 659 (170) (24) 78 4 46 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 17 (1,120 593 (884) (7) (1,042) 597 (838 217 3,098 (558) 898 Change in unrealized gains/losses on marketable debt securities, net of tax: Change in fair value of marketable debt securities Adjustment for net (gainsy/losses realized and included in net income Total change in unrealized gains/losses on marketable debt securities (54 (11) (234) 8 163 3,087 (792 906 Total other comprehensive income/(loss) 344 2,239 464 (102) 44,636 Total comprehensive income $ 22,088 13,492 $ 74,593 $ See accompanying Notes to Condensed Consolidated Financial Statements. Apple Inc. Q3 2021 Form 10-02 Apple Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions, except number of shares which are reflected in thousands and par value) June 26, 2021 September 26, 2020 ASSETS: : S 34.050 S 38,016 Current assets: Cash and cash equivalents Marketable securities Accounts receivable, net Inventories Vendor non-trade receivables Other current assets Total current assets 27.646 17.475 5,178 16,433 52,927 16,120 4,061 21,325 13,641 11,264 114,423 143,713 Non-current assets: Marketable securities 131.948 38,615 Property, plant and equipment, net Other non-current assets 100,887 36,766 42,522 180,175 44,854 Total non-current assets 215,417 Total assets S 329.840 S 323,888 LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities: Accounts payable Other current liabilities s 40,409 S 42,296 43,625 42,684 7,681 6,643 Deferred revenue Commercial paper 8,000 4,996 8.773 Term debt 8,039 Total current liabilities 107.754 105,392 Non-current liabilities: Term debt Other non-current liabilities Total non-current liabilities Total liabilities 105,752 52,054 98,667 54,490 153,157 157,806 265,560 258,549 Commitments and contingencies 50,779 Shareholders' equity: Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 16,556,942 and 16.976,763 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income/loss) Total shareholders' equity Total liabilities and shareholders' equity 54.989 9,233 14,966 58 (406) ) 65,339 64.280 329,840 $ S 323,888 Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) (In millions, except per share amounts) Three Months Ended Nine Months Ended June 26, 2021 69,178 $ June 27, 2020 June 26, 2021 65,339 $ June 27, 2020 Total shareholders' equity, beginning balances $ 78,425 90,488 54,203 48,032 45,174 Common stock and additional paid-in capital: Beginning balances Common stock issued Common stock withheld related to net share settlement of equity awards 50,779 561 430 (1,224) 2,010 54,989 (1,071) 1,735 (2,460) 6,109 (2,123 5,215 Share-based compensation Ending balances 48,696 54,989 48,696 15,261 21,744 (3,713) 33,182 11,253 (3,611) 14,966 74,129 10,755) 45,898 44,738 (10,528) Retained earnings: Beginning balances Net income Dividends and dividend equivalents declared Common stock withheld related to net share settlement of equity awards Common stock repurchased Cumulative effect of change in accounting principle Ending balances (688) (1,559) (22,500) (3,606) (65,501) (16,000 (1,320 (54,516) (136) 24,136 9,233 24,136 9.233 (286) (406) Accumulated other comprehensive income/loss): Beginning balances Other comprehensive income/loss) Cumulative effect of change in accounting principle Ending balances (2,789) 2,239 (584) (102 344 464 136 58 (550) 58 (550) Total shareholders' equity, ending balances 64,280 72,282 64,280 72.282 Dividends and dividend equivalents declared per share or RSU $ 0.22 $ 0.205 $ 0.63 $ 0.59 Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions) Nine Months Ended June 26. June 27 2021 2020 39,789 $ 50,224 $ 74.129 44.738 8.295 5.961 (737) (689) 8,354 5.105 182 (94 (1,316) (1,213) 4,892 (5,899) (1.786) 1,738 5,149 10 8,685 (6,760 (10,787) 1,649 3,867 463 83,838 60,098 Cash, cash equivalents and restricted cash, beginning balances Operating activities: Net income Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization Share-based compensation expense Deferred income tax expense/(benefit) Other Changes in operating assets and liabilities: Accounts receivable, net Inventories Vendor non-trade receivables Other current and non-current assets Accounts payable Deferred revenue Other current and non-current liabilities Cash generated by operating activities Investing activities: Purchases of marketable securities Proceeds from maturities of marketable securities Proceeds from sales of marketable securities Payments for acquisition of property, plant and equipment Payments made in connection with business acquisitions, net Other Cash used in investing activities Financing activities: Proceeds from issuance of common stock Payments for taxes related to net share settlement of equity awards Payments for dividends and dividend equivalents Repurchases of common stock Proceeds from issuance of term debt, net Repayments of term debt Proceeds from commercial paper, net Proceeds from repurchase agreements Other Cash used in financing activities 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 (94,052) 49,880 36.745 (7,862) (13) (78) (15,380) (96,606) 54.865 39,760 (5,525 (1.473 (841) (9,820) 430 (3,234 561 (5,855) (10,827) (66.223) 13,923 (7,500) 3,022 - (72) (72,971) (4,513 35.276 $ (10,570 (55,171) 10,635 (12,629 31 5,165 (120) (65.463) (15,185) 35,039 $ $ 18,536 $ 1.870 $ 8,410 2,275 $