March 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 March 27, 2021 March 28, 2020 Six Months Ended March 27, March 28, 2021 2020 Net sales: Products $ 72,683 44.965 $ $ 168,361 32,662 124,069 26.063 Services 16.901 13,348 Total net sales 89,584 58,313 201,023 150,132 Cost of sales: Products 46,447 5,058 31,321 4,622 35.943 108,577 10,039 Services 83,396 9.149 92,545 57,587 Total cost of sales 51,505 118,616 82,407 Gross margin 38,079 22,370 9,016 Operating expense Research and development Selling, general and administrative Total operating expenses 5,262 5,314 4,565 4,952 10,425 10,945 21,370 10.149 10,576 9,517 19,165 27,503 508 12.853 282 Operating income Other income/expense), net Income before provision for income taxes Provision for income taxes 61,037 553 61,590 9,205 38.422 631 39,053 5,568 28,011 4.381 13,135 1,886 Net income $ 23,630 $ 11,249 $ 52,385 $ 33,485 Earnings per share: Basic $ 0.64 S $ S 1.41 1.40 3.11 $ 3.08 $ 1.91 1.89 Diluted $ 0.64 S Shares used in computing earnings per share: Basic 16,753,476 16.929,157 17,440,402 17,618,765 16,844,298 17,021,423 17,550,281 17,718,591 Diluted Apple Inc. Q2 2021 Form 10-Q11 Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (In millions) Six Months Ended Three Months Ended March 27, March 28, 2021 2020 March 27, 2021 March 28, 2020 $ 23.630 $ 11,249 $ 52.385 $ 33,485 Net income Other comprehensive income/loss): Change in foreign currency translation, net of tax (78) (566) 471 (364) 332 (143) 28 (32 Change in unrealized gains/losses on derivative instruments, net of tax: Change in fair value of derivatives Adjustment for net (gainsy/losses realized and included in net income Total change in unrealized gains/losses on derivative instruments 759 634 576 236 1,091 491 604 204 (1,403) (2,325 (775) (2,200 Change in unrealized gains/losses on marketable debt securities, net of tax: Change in fair value of marketable debt securities Adjustment for net (gains)/losses realized and included in net income Total change in unrealized gains/losses on marketable debt securities (75) 29 (180) 19 (1,478) (2.296 (955) (2,181) (465) (2,341 Total other comprehensive income/loss) Total comprehensive income (2,371 8,878 $ 120 52.505 $ $ 23.165 $ 31,144 See accompanying Notes to Condensed Consolidated Financial Statements. Apple Inc. Q2 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) March 27 September 26, 2020 2021 ASSETS: $ 38,466 $ 38,016 31,368 52,927 16,120 Current assets: Cash and cash equivalents Marketable securities Accounts receivable, net Inventories Vendor non-trade receivables Other current assets Total current assets 18,503 5,219 14,533 4,061 21,325 11,264 13,376 121,465 143,713 Non-current assets: : Marketable securities Property, plant and equipment, net Other non-current assets - Total non-current assets 134,539 37,815 43,339 100,887 36,766 42,522 180,175 323,888 215,693 337.158 Total assets $ $ LIABILITIES AND SHAREHOLDERS' EQUITY: $ 40,127 $ 42,296 45,660 42,684 Current liabilities: Accounts payable Other current liabilities Deferred revenue Commercial paper Term debt Total current liabilities 6,643 7.595 5,000 4,996 8.003 8,773 105,392 106,385 98,667 Non-current liabilities: Term debt Other non-current liabilities Total non-current liabilities 108,642 52,953 54,490 161,595 267.980 153,157 258,549 Total liabilities Commitments and contingencies Shareholders' equity: Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized: 16,686,305 and 16,976,763 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income/(loss) Total shareholders' equity Total liabilities and shareholders' equity 54,203 15,261 (286) 50,779 14,966 (406) ( 69,178 65,339 $ 337,158 $ 323,888 Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) (In millions, except per share amounts) Three Months Ended March 27, March 28, 2021 2020 Six Months Ended March 27, March 28, 2021 2020 Total shareholders' equity, beginning balances $ 66,224 $ 89,531 S 65,339 $ 90,488 51,744 561 45,972 428 50,779 561 45,174 430 Common stock and additional paid-in capital: Beginning balances Common stock issued Common stock withheld related to net share settlement of equity awards Share-based compensation Ending balances (101) (1,052 (135) 2,033 54,203 (1.236) 4,099 54,203 1,733 48,032 3.480 48,032 14,301 23,630 (3.495 43,977 11,249 14,966 52,385 (7,042) 45,898 33,485 (6.917) (3,432) 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 (174) (96) (2,047) (19,001) (18,516) (43,001) (632) (38,516) (136) 15.261 33,182 15,261 33,182 179 (406) Accumulated other comprehensive income/(loss): Beginning balances Other comprehensive income/loss) Cumulative effect of change in accounting principle Ending balances (418) (2,371 (465) 120 (584) (2,341) 136 (286) (2,789) (286 (2,789) Total shareholders' equity, ending balances $ 69,178 $ 78.425 S 69,178 S 78,425 Dividends and dividend equivalents declared per share or RSU $ 0.205 $ 0.1925 S 0.41 S 0.385 Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions) Six Months Ended March 27, March 28, 2020 2021 $ 39.789 $ 50,224 52.385 33,485 5,463 5,602 4,001 (207) (474) 3,407 (651) (259) 7,284 699 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 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 (2,347 (1,226) 6.792 (4,333) (1,997) 7,923 (8,866 (13,520) 1,223 1,642 3,045 7,500 62,744 43,827 (74,424) 39,605 21,645 (5,769) (9) (66.489 39,738 27,762 (3.960) (1,134) ( (572) 4,655) (18,952) 430 (1.566) (6.914) 561 (3.160) (7,060) (43,323) 13.923 (4,500) (39.280 2.210 (5,250) 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 agreement Other Cash used in financing activities Increase/(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 22 1,518 (38) () (43,575) 2,556 (51) (46,347) (7,175) 217 $ 40,006 $ $ 43,049 $ 10.276 $ 7,505 $ 1,327 $ 1,689 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 March 27, 2021 March 28, 2020 Six Months Ended March 27, March 28, 2021 2020 Net sales: Products $ 72,683 44.965 $ $ 168,361 32,662 124,069 26.063 Services 16.901 13,348 Total net sales 89,584 58,313 201,023 150,132 Cost of sales: Products 46,447 5,058 31,321 4,622 35.943 108,577 10,039 Services 83,396 9.149 92,545 57,587 Total cost of sales 51,505 118,616 82,407 Gross margin 38,079 22,370 9,016 Operating expense Research and development Selling, general and administrative Total operating expenses 5,262 5,314 4,565 4,952 10,425 10,945 21,370 10.149 10,576 9,517 19,165 27,503 508 12.853 282 Operating income Other income/expense), net Income before provision for income taxes Provision for income taxes 61,037 553 61,590 9,205 38.422 631 39,053 5,568 28,011 4.381 13,135 1,886 Net income $ 23,630 $ 11,249 $ 52,385 $ 33,485 Earnings per share: Basic $ 0.64 S $ S 1.41 1.40 3.11 $ 3.08 $ 1.91 1.89 Diluted $ 0.64 S Shares used in computing earnings per share: Basic 16,753,476 16.929,157 17,440,402 17,618,765 16,844,298 17,021,423 17,550,281 17,718,591 Diluted Apple Inc. Q2 2021 Form 10-Q11 Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (In millions) Six Months Ended Three Months Ended March 27, March 28, 2021 2020 March 27, 2021 March 28, 2020 $ 23.630 $ 11,249 $ 52.385 $ 33,485 Net income Other comprehensive income/loss): Change in foreign currency translation, net of tax (78) (566) 471 (364) 332 (143) 28 (32 Change in unrealized gains/losses on derivative instruments, net of tax: Change in fair value of derivatives Adjustment for net (gainsy/losses realized and included in net income Total change in unrealized gains/losses on derivative instruments 759 634 576 236 1,091 491 604 204 (1,403) (2,325 (775) (2,200 Change in unrealized gains/losses on marketable debt securities, net of tax: Change in fair value of marketable debt securities Adjustment for net (gains)/losses realized and included in net income Total change in unrealized gains/losses on marketable debt securities (75) 29 (180) 19 (1,478) (2.296 (955) (2,181) (465) (2,341 Total other comprehensive income/loss) Total comprehensive income (2,371 8,878 $ 120 52.505 $ $ 23.165 $ 31,144 See accompanying Notes to Condensed Consolidated Financial Statements. Apple Inc. Q2 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) March 27 September 26, 2020 2021 ASSETS: $ 38,466 $ 38,016 31,368 52,927 16,120 Current assets: Cash and cash equivalents Marketable securities Accounts receivable, net Inventories Vendor non-trade receivables Other current assets Total current assets 18,503 5,219 14,533 4,061 21,325 11,264 13,376 121,465 143,713 Non-current assets: : Marketable securities Property, plant and equipment, net Other non-current assets - Total non-current assets 134,539 37,815 43,339 100,887 36,766 42,522 180,175 323,888 215,693 337.158 Total assets $ $ LIABILITIES AND SHAREHOLDERS' EQUITY: $ 40,127 $ 42,296 45,660 42,684 Current liabilities: Accounts payable Other current liabilities Deferred revenue Commercial paper Term debt Total current liabilities 6,643 7.595 5,000 4,996 8.003 8,773 105,392 106,385 98,667 Non-current liabilities: Term debt Other non-current liabilities Total non-current liabilities 108,642 52,953 54,490 161,595 267.980 153,157 258,549 Total liabilities Commitments and contingencies Shareholders' equity: Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized: 16,686,305 and 16,976,763 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income/(loss) Total shareholders' equity Total liabilities and shareholders' equity 54,203 15,261 (286) 50,779 14,966 (406) ( 69,178 65,339 $ 337,158 $ 323,888 Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) (In millions, except per share amounts) Three Months Ended March 27, March 28, 2021 2020 Six Months Ended March 27, March 28, 2021 2020 Total shareholders' equity, beginning balances $ 66,224 $ 89,531 S 65,339 $ 90,488 51,744 561 45,972 428 50,779 561 45,174 430 Common stock and additional paid-in capital: Beginning balances Common stock issued Common stock withheld related to net share settlement of equity awards Share-based compensation Ending balances (101) (1,052 (135) 2,033 54,203 (1.236) 4,099 54,203 1,733 48,032 3.480 48,032 14,301 23,630 (3.495 43,977 11,249 14,966 52,385 (7,042) 45,898 33,485 (6.917) (3,432) 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 (174) (96) (2,047) (19,001) (18,516) (43,001) (632) (38,516) (136) 15.261 33,182 15,261 33,182 179 (406) Accumulated other comprehensive income/(loss): Beginning balances Other comprehensive income/loss) Cumulative effect of change in accounting principle Ending balances (418) (2,371 (465) 120 (584) (2,341) 136 (286) (2,789) (286 (2,789) Total shareholders' equity, ending balances $ 69,178 $ 78.425 S 69,178 S 78,425 Dividends and dividend equivalents declared per share or RSU $ 0.205 $ 0.1925 S 0.41 S 0.385 Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions) Six Months Ended March 27, March 28, 2020 2021 $ 39.789 $ 50,224 52.385 33,485 5,463 5,602 4,001 (207) (474) 3,407 (651) (259) 7,284 699 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 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 (2,347 (1,226) 6.792 (4,333) (1,997) 7,923 (8,866 (13,520) 1,223 1,642 3,045 7,500 62,744 43,827 (74,424) 39,605 21,645 (5,769) (9) (66.489 39,738 27,762 (3.960) (1,134) ( (572) 4,655) (18,952) 430 (1.566) (6.914) 561 (3.160) (7,060) (43,323) 13.923 (4,500) (39.280 2.210 (5,250) 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 agreement Other Cash used in financing activities Increase/(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 22 1,518 (38) () (43,575) 2,556 (51) (46,347) (7,175) 217 $ 40,006 $ $ 43,049 $ 10.276 $ 7,505 $ 1,327 $ 1,689