1. LOOK AT THE FILE IN THE CH.16 CANVAS MODULE CALLED APPLE 2017 STATEMENT OF CASH FLOWS and then answer the following questions about it:

a. Did Apple have a positive or negative cash flow from operating activities? What is the dollar amount? Is this a good thing or bad thing? Explain. (3pts)

b. Did Apple pay dividends in 2017? If so, how much (notice this is in millions)? (2pts)

c. What was Apples largest financing activity? What is another name for this as discussed in Ch.13? (2pts)

2. For each of the following transactions, state two things: (1) which section of the Statement of Cash Flows would this transaction be reported; and (2) would it be shown as an increase or decrease: (2pts each)

Example: Decrease in Accounts Payable Answer: Operating, decrease

a. Decrease in Inventory

b. Principal Payments on Notes Payable

c. Gain on Sale of Land

d. Purchase of Long-term Investment

Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (in Millions) Years ended September 30, September 24, September 26, 2017 2016 2015 $ 20,484 $ 21,120 $ 13,844 48,351 45.687 53,394 10.157 4,840 5,966 (166) 10.505 4,210 4,938 486 11.257 3,586 1,382 385 (2,093) (2.723) (4,254) (5,318) 9.618 (626) (154) 63,598 527 217 (51) 1,055 1,837 (1,554) (2,033) 65,824 417 (238) (3,735) (283) 5.001 1,042 9,058 81,266 Cash and cash equivalents, beginning of the year 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 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 made in connection with business acquisitions, net Payments for acquisition of property, plant and equipment Payments for acquisition of intangible assets Payments for strategic investments, net Other Cash used in investing activities Financing activities: Proceeds from issuance of common stock Excess tax benefits from equity awards Payments for taxes related to not 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 Change in commercial paper, net Cash used in financing activities Increase/(Decrease) in cash and cash equivalents Cash and cash equivalents, end of the year Supplemental cash flow disclosure: Cash paid for income taxes, net Cash paid for interest (159.486) 31,775 94,564 (329) (12.451) (344) (395) 220 (46,446) (142.428) 21.258 90,536 (297) (12,734) (814) (1,388) (110) (45,977) (166,402) 14,538 107,447 (343) (11,247) (241) (26) (56,274) 495 407 543 749 555 627 (1.874) (12,769) (32,900) 28,662 (3.500) 3,852 (17,347) (195) 20,289 $ (1,570) (12,150) (29,722) 24,954 (2,500) (397) (20,483) (1.499) (11,561) (35,253) 27,114 2,191 (17,716) (636) 20,484 $ 7,276 21,120 $ $ $ 11,591 $ 2,092 $ 10,444 $ 1,316 $ 13,252 514