LO2-2, 2-4, 2-5 EL Recording Transactions, Preparing Journal Entries, Posting to T- Accounts, Preparing the Balance Sheet, and Evaluating the Current Ratio Apple Inc., headquartered in Cupertino, California, designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players and sells a variety of related software and services. The following is Apple's (simplified) balance sheet from a recent year (fiscal year ending on the last Saturday of September). APPLE INC. Consolidated Balance Sheet September 30, 2017 (dollars in millions) ASSETS Current assets: Cash $ 20,289 Short-term investments 53,892 Accounts receivable 17,874 Inventories 4,855 Other current assets 31,735 Total current assets 128,645 Long-term investments 194,714 Property, plant, and equipment, net 33,783 Other noncurrent assets 18,177 Total assets $375,319 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued expenses Unearned revenue Short-term notes payable Total current liabilities Long-term debt Other noncurrent liabilities Total liabilities $ 49,049 25,744 7,548 18,473 100,814 97,207 43,251 241,272 1 Shareholders' equity: Common stock ($0.00001 par value) Additional paid-in capital Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 35,866 98,180 134,047 $375,319 Source: Apple Inc. page 95 Assume that the following transactions in millions) occurred during the next fiscal year (ending on September 29, 2018): Borrowed $18,266 from banks due in two years. Purchased additional investments for $21,000 cash; one-fifth were long term and the rest were short term. Purchased property, plant, and equipment; paid $9,571 in cash and signed a short-term note for $1,410 Issued additional shares of common stock for $1,469 in cash; total par value was $1 and the rest was in excess of par value. Sold short-term investments costing $18,810 for $18,810 cash. Declared $11,126 in dividends to be paid at the beginning of the next fiscal year. P2-6 LO2-6 Identifying the Investing and Financing Activities Affecting the Statement of Cash Flows Refer to P2-5. Required: For each of the activities (a)-(), indicate whether the activity is (1) investing (I) or financing (F) and (2) the direction and amount of the effect on cash flows (+ for increases; for decreases). If the activity does not affect the statement of cash flows, indicate no effect (NE)