Make a 5-year trend analysis, using 2014 as the base year, of (1) net sales and (2) net income. (This information is provided in the financial statements of Apple presented in Appendix A along with the complete annual reports available on the company's website.) (Round percentages to O decimal places, e.g. 15% and enter amounts in millions.) (1) Net sales Trend (2) Net income Trend $ 2018 % % do 2017 $ $ APPLE INC. Trend Analysis of Net Sales and Net Incom For the Five Years Ended 2018 % do do % $ $ 2016 APPLE INC. d Analysis of Net Sales and Net Income For the Five Years Ended 2018 % % do +A $ 2016 % % GA $ 2015 % % $ 2014 % % Net sales Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) September 29, 2018 $265,595 163,756 101,839 Years ended September 30, 2017 $ 229,234 141,048 88,186 September 24, 2016 $ 215,639 131,376 84,263 Cost of sales Gross margin Operating expenses: Research and development 11,236 11,581 10,045 Selling, general and administrative 16,705 15,261 14,194 Total operating expenses 30,941 26,842 24,239 Operating income 70,898 61,344 60,024 Other income/(expense), net 2,005 2,745 1,348 Income before provision for income taxes 72,903 64,089 61,372 Provision for income taxes 13,372 15,738 15,685 Net income $ 59,531 $ 48,351 $ 45,687 12.01 9.27 8.35 11.91 9.21 8.31 Earnings per share: Basic Diluted Shares used in computing earnings per share: Basic 4,955,377 Diluted 5,000,109 5,217,242 5,470,820 5,251,692 5,500,281 See accompanying Notes to Consolidated Financial Statements. Net income CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) Other comprehensive income/(loss): Change in foreign currency translation, net of tax effects of $(1), $(77) and $8, respectively Change in unrealized gains/losses on derivative instruments: Change in fair value of derivatives, net of tax benefit/(expense) of $(149), $(478) and $(7), respectively September 29, 2018 $59,531 Years ended September 30, 2017 $48,351 September 24, 2016 $45,687 (525) 224 75 75 523 1,315 7 Adjustment for net (gains)/losses realized and included in net income, net of tax expense/(benefit) of $(104), $475 and $131, respectively Total change in unrealized gains/losses on derivative instruments, net of tax 382 (1,477) (741) 905 (162) (734) Change in unrealized gains/losses on marketable securities: Change in fair value of marketable securities, net of tax benefit/(expense) of $1,156, $425 and $(863), respectively Adjustment for net (gains)/losses realized and included in net income, net of tax expense/(benefit) of $21, $35 and $(31), respectively Total change in unrealized gains/losses on marketable securities, net of tax (3,407) (782) 1,582 (64) 56 (3,406) (846) 1,638 Total other comprehensive income/(loss) Total comprehensive income (3,026) (784) 979 $56,505 $47,567 $46,666 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 Total assets Current liabilities: Accounts payable Other current liabilities Deferred revenue Commercial paper Term debt Total current liabilities Non-current liabilities: Deferred revenue Term debt Other non-current liabilities Total non-current liabilities Total liabilities Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 29, 2018 September 30, 2017 ASSETS: $25.913 $ 20,289 40,388 53,892 23,186 17,874 3.956 4,855 25,809 17.799 12,087 13.936 131,339 128,645 170,799 194,714 41,304 33.783 22,283 18,177 234.386 246,674 $365,725 $375.319 LIABILITIES AND SHAREHOLDERS' EQUITY: $55,888 $44,242 32,687 30,551 7.543 7.548 11,964 11,977 8,784 6.496 116,866 100,814 2,797 2,836 93:735 97,207 45,180 40,415 141,712 140,458 258,578 241,272 Commitments and contingencies Shareholders' equity: Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 4.754.986 and 5,126,201 shares issued and outstanding, respectively Retained earnings 40,201 35,867 70,400 98,330 Accumulated other comprehensive income/(loss) (3.454) (150) Total shareholders' equity 107.147 134,047 Total liabilities and shareholders' equity $365,725 $375.319 Balances as of September 26, 2015 Net income Apple Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In millions, except number of shares which are reflected in thousands and per share amounts) Common Stock and Additional Paid-In Capital Shares 5,578,753 Amount $27,416 Accumulated Other Comprehensive Income/(Loss) Retained Earnings $92,284 45,687 $ (345) Other comprehensive income/(loss) 979 Dividends and dividend equivalents declared at $2.18 per share or RSU (12,188) Repurchase of common stock (279,609) (29,000) Share-based compensation 4,262 Common stock issued, net of shares withheld for employee taxes 37,022 (806) (419) Tax benefit from equity awards, including transfer pricing adjustments Balances as of September 24, 2016 379 5,336,166 31,251 96,364 634 Net income 48,351 Other comprehensive income/(loss) Dividends and dividend equivalents declared at $2.40 per share or RSU Repurchase of common stock | | | (784) (12,803) (246,496) (33,001) Share-based compensation 4,909 Common stock issued, net of shares withheld for employee taxes 36,531 (913) (581) Tax benefit from equity awards, including transfer pricing adjustments 620 Balances as of September 30, 2017 5,126,201 35,867 98,330 (150) Cumulative effect of change in accounting principle 278 (278) Net income 59,531 Other comprehensive income/(loss) (3,026) Dividends and dividend equivalents declared at $2.72 per share or RSU Repurchase of common stock (405,549) (13,735) (73,056) Share-based compensation 5,443 Common stock issued, net of shares withheld for employee taxes 34,334 (1,109) (948) | | :|| | | | | |B ||, | Balances as of September 29, 2018 4,754,986 $40,201 $70,400 $(3,454) Total Shareholders' Equity $119,355 45,687 979 (12,188) (29,000) 4,262 (1,225) 379 128,249 48,351 (784) (12,803) (33,001) 4,909 (1,494) 620 134,047 59,531 (3,026) (13,735) (73,056) 5,443 (2,057) $107,147 Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) September 29, 2018 $20,289 Years ended September 30, 2017 $20,484 September 24, 2016 $21,120 Cash and cash equivalents, beginning of the year Operating activities: Net income 59,531 48,351 45,687 Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization 10,903 10,157 10,505 Share-based compensation expense 5,340 4,840 4,210 Deferred income tax expense/(benefit) (62,590) 5,966 4.938 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 (444) (166) 486 (5,322) (2,093) 527 828 (2,723) 217 (8,010) (4,254) (51) (423) (5,318) 1,055 9,175 8,966 2,117 (44) (626) (1,554) 38,490 77,434 1,125 64,225 (1,906) 66,231 (71,356) (159,486) (142,428) Proceeds from maturities of marketable securities 55,881 31,775 21,258 Proceeds from sales of marketable securities 47,838 94,564 90,536 Payments for acquisition of property, plant and equipment (13,313) (12,451) (12,734) Payments made in connection with business acquisitions, net (721) (329) (297) Purchases of non-marketable securities (1,871) (521) (1,388) Proceeds from non-marketable securities 353 126 Other (745) (124) (924) Cash generated by/(used in) investing activities 16,066 (46,446) (45.977) Financing activities: Proceeds from issuance of common stock 669 555 495 Payments for taxes related to net share settlement of equity awards (2.527) (1,874) (1,570) Payments for dividends and dividend equivalents (13,712) (12,769) (12,150) Repurchases of common stock (72,738) (32,900) (29,722) Proceeds from issuance of term debt, net 6,969 28,662 24,954 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 (6,500) (3,500) (2,500) (37) (87,876) 5,624 3,852 (17,974) (195) (397) (20,890) (636) $25,913 $20,289 $20,484 $10,417 $11,591 $10,444 $3,022 $ 2,092 $ 1,316