make an analysis of the consolidated statements of operations. are the sales increasing or decreasing? is the net income increasing or decreasing? are the basic earnings per share increasing or decreasing? (also connect with the consolidated statements of shareholder's equity). consider the reasonableness of your answer.

CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) Years ended September 24,. September 26, 2015 September 27, 2016 2014 Net sales 215,639 233,715 140,089 93,626 182,795 Cost of sales 131,376 112,258 70,537 Gross margin 84,263 Operating expenses: Research and development 10,045 14,194 24,239 8,067 14,329 6,041 Selling, general and administrative Total operating expenses 11,993 18,034 22,396 Operating income Other income/(expense), net Income before provision for income taxes Provision for income taxes 60,024 71,230 1,285 72,515 52,503 980 1,348 61,372 53,483 13,973 19,121 15,685 Net income 45,687 53,394 $ 39,510 Earnings per share: Basic 6.49 9.28 $ 8.35 6.45 9.22 8.31 Diluted Shares used in computing earnings per share: 6.085,572 5,753,421 5,793,069 5,470,820 5,500,281 Basic 6.122,663 Diluted 1.82 1.98 2.18 $ Cash dividends declared per share See accompanying Notes to Consolidated Financial Statements. SS Appendix A 753 CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In millions, except number of shares which are reflected in thousands) Accumulated Common Stock and Other Total Comprehensive Shareholders Equity 123.549 Additional Pald-In Capital Retained Earnings 104.256 S Income/(Ioss) (471) $ Shares Amount Balances as of September 28, 2013 Net income Other comprehensive income/(loss) Dividends and dividend equivalents 19.764 6,294,494 39,510 39,510 1,553 1,553 (11.215) (45,000) declared (11,215) (45,000) 2,863 Repurchase of common stock Share-based compensation Common stock issued, net of shares withheld for employee taxes Tax benefit from equity awards, including transfer pricing adjustments Balances as of September 27, 2014 (488,677) 2,863 (399) (448) (49) 60,344 735 111,547 53,394 (1,427) 735 1,082 87.152 53,394 5.866,161 23,313 Net income (1,427) Other comprehensive income/(loss) Dividends and dividend equivalents (11,627) (36,026) (11,627) (36,026) 3,586 declared Repurchase of common stock Share-based compensation Common stock issued, net of shares withheld for employee taxes Tax benefit from equity awards, including transfer pricing adjustments Balances as of September 26, 2015 Net income Other comprehensive income/(loss) Dividends and dividend equivalents declared (325,032) 3.586 (840) (609) (231) 37,624 748 748 119.355 45,687 979 (345) 27.416 92.284 5,578,753 45,687 979 (12,188) (29,000) 4,262 (12,188) (29,000) (279,609) Repurchase of common stock Share-based compensation Common stock issued, net of shares withheld for employee taxes Tax benefit from equity awards, including transfer pricing adjustments Balances as of September 24, 2016 4,262 (1,225) (419) (806) 37,022 379 379 128,249 $ 96,364 634 31.251 5,336,166 See accompanving Notes to Consolidateed Financial Statements