Net sales Cost of sales Gross margin $ September 30, 2017 229.2345 141 048 88,186 Years ended September 24, 2016 215,639 131,376 84,263 $ September 25, 2015 233,715 140,089 93,626 Operating expenses Research and development Seling. general and administrative Total operating expenses 11.581 15,261 20,842 10,045 14.194 24,239 8,067 14329 22,306 Operating income Other income/expense).net Income before provision for income taxes Provision for income taxes Net income 61,344 2,745 64,089 15.738 48,351 60,024 1,348 81,372 15.685 45.687 71.230 1,285 72,515 19.121 53,394 $ Earnings per share: Basic Diluted 9.27 9.21 s $ 8.35 8.31 S $ 0.28 9.22 Shares used in computing earings per share Basic Diluted 5.217.242 5.251.092 5,470,820 5.500.281 5,753,421 5.793,060 Cash dividends declared per share 2.40 $ 2.18 $ See accompanying Notes to Consolidated Financial Statements Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in Millions) September 30, 2017 48,351 Years ended September 24, 2016 45.687 September 26, 2015 53,394 $ $ Net Income Other comprehensive income (loss): Change in foreign currency translation, net of tax effects of (77), 68 and 5201, respectively 224 75 (411) 1.315 7 2,905 Change in unrealized gains/losses on derivative instruments: Change in tair value of divatives, net of tax benefit (expense) of $(478). S(7) and S(441), respectively Adjustment for net (gains/losses realized and included in net income, net of tax expense/benefit) of $475, $131 and $630, renpectively Total change in unrealized gainalosses on derivative Instruments, not of tax (1.477) (162) (741) (734) (3,497) (592) (782) 1,582 (483) Change in unrealized cains/losses on marketable securities: Change in fair value of marketable securities, net of tax benefit(exponse) of $425, S(863) and 264, respectively Adjustment for net (gains Mosses realized and included in net income, net of tax expense (benett) of $35, $(31) and 5432), respectively Total change in unrealized gainslosses on marketable securities, net of tax (64) (846) 56 1,638 59 (424) Total other comprehensive income (los) Total comprehensive income (784) 47,567 979 46,666 (1.427) 51,967 $ See accompanying Notes to Consolidated Financial Statements. Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 30, 2017 September 24, 2016 ASSETS: $ Current assets Cash and cash equivalents Short-term marketable securities Accounts receivable, toss allowances of $58 and $53, respectively Inventories Vendor non-trade receivables Other current assets Total current assets 20.289 53,892 17 874 4856 17.799 13.936 128,645 20,484 46,671 15,754 2,132 13,545 8,283 106,809 Long-form marketable securitien Property, plant and equipment, net Goodwill Acquired intangible assets, net Other non-current assets Total asset 194,714 33 783 5,717 2.298 10.162 375,319 170,430 27,010 5,414 3.206 8,757 321,606 LIABILITIES AND SHAREHOLDERS' EQUITY: S Current liabilities: Accounts payable Accrued expenses Deferred rovence Commercial paper Current portion of long-term debt Total current liabilities 49,049 25,744 7,548 11,977 6.496 100 814 37,204 22,027 8.000 8,105 3.500 79,006 Deterred revenue, non-current Long-term debit Other non-current liabilities Total abilities 2,836 97 207 40,415 241,272 2,930 75,427 36,074 193,437 Commitments and contingencies Shareholders' equity Common stock and additional paid in capital, S0.00001 par value: 12,000,000 shares authorized 5,126,201 and 5.336,166 shares issued and outstanding, respectively Retained earrings Accumulated other comprehensive income (10) Total shareholders' equity Total abilities and shareholders equity See accompanying Notes to Consolidated Financial Statements 35,067 98.330 (150) 14,047 375,310 31.251 30,304 034 128,240 321.030 Apple Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (in millions, except number of shares which are reflected in thousands) Common Stock and Additional Paid in Capital Shares Amount 5,865,1615 23,313 Accumulated Other Comprehensive Income Loss) Retained Earnings 87, 152 53,394 1,082 (1,427) Total Shareholders Equity $ 111,547 53.394 (1.427) (11.627) (36,026) 3.580 (325,032) (11.627) (36,026) 3.586 37.624 (231) (809) (840) 5.578,753 748 27.416 (345) 92284 45,687 Balances as of September 27, 2014 Net income Other comprehensive income(s) Dividends and dividend equivalents 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 Not income Other comprehensive income foss) Dividends and dividend equivalents declared Repurchase of common stock Share-based compensation Common stock issued, not of shares withheld for employee taxes Tax beneft from equity awards, including transfer pricing adjustments Balances as of September 24, 2016 Net income Other comprehensive income (oss) Dividends and dividend equivalents declared Repurchase of common stock Share based compensation 11 970 748 119,355 45.687 979 (12,188) (20.000) 4,262 112.188) (20,000) (279,600) 4,262 37.022 (806) (419) (1 225) 379 5,336,165 31.251 634 96,384 48.351 379 128.249 48,351 (781) (12.809) (33,001) (784) (12,803) 33,001 (246 495) 4.809 (1.494) 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 See accompanying Notes to Consolidated Financial Statements, 620 134,047 (150) $ Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS On millions) September 30, 2017 20:44 Years ended September 24, 2016 September 26, 2015 13.344 $ 21.120 $ 40,351 45.657 30.01 10.157 4540 5,800 (100) 10.505 4210 4,938 11.257 3,500 1,352 385 186 Cash and cath equivalenta, beginning of the year Operating activities Net income Adjustments to reconcile net become to cash generated by operating activities Depreciation and amortization Share-based compensation expen Deferred income tax expense Other Changes in operating and liabilities Accounts receivable, not Invernes Vendor non-trade receivables Other current and non-current att Accounts payable Deferred revenue Omer current and non-curedite Cash generated by operating sites Investing activities (2003) 417 (2.7231 (4256) (5,318) 9.618 (620) (154) 5:27 217 651) 1.056 1.897 1.8.54) 20331 66.24 3.7361 1280 5001 1.041 9.066 01. 206 3.300 (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 Investing activities: Purchases of marketable securities (159.486) Proceeds from maturition of marketable securities 31.775 Prooveds from sales of marketable securities 94,564 Payments made in connection with business acquisitions, net (329) Payments for acquisition of property, plant and equipment (12451) Payments for acquisition of intangible assets (344) Payments for strategic investments.net (395) Other 220 Cash used in investing activities (46446) Financing activities Proceeds from sunce of common stock 555 Excess tax benefit from equity awards 127 Payments for taxes related to ret share settlement of equity awards (1,874) Payments for dividends and dividend equivalent (12.700) Repurchases of common stock (32.000) Proceeds from ince of term debitno 20,602 Repayments of term debe (3,500) Change in commercial paper, net 3.852 Cash used in financing activities (17.347 Increase Decreaso) in cash and cau equivalents (195) Cash and cash equivalents, end of the year 20.20 Supplemental cash flow disclosure Cash paid for income on net $ 11.501 Cash paid for interest 2,092 See accompanying Notes to Consolidated Financial Statements 543 740 407 (1.670) (12.150) (29,722) 24.054 (1.400) (11,561) (35.253) 27.114 12.500) (20,483) 1636) 20.484 2.191 (17.710 7270 21.120 $ 10.444 1.316 13.252 514 $ $ The financial statements of Apple Inc. are presented in Appendix A Click here to view Appendix A. Answer these questions using the Consolidated Statement of Operations. What was the percentage change in net sales and in net income from the year ended September 24, 2016, to the year ended September 30, 2017? (Round answers to 1 decimal places, eg. 15.2%) 96 Percentage change in total revenue Percentage change in net income 5,83 % What was the profit margin in each of the 3 years? (Use "Net Sales.") (Round answers to 1 decimal places, es 15.2%) Profit margin 2015 % 2016 2017 % The profit margin by % in 2016 but in 2017 What was Apple's gross profit rate in each of the 3 years? (Use "Net Sales" amounts.) (Round answers to 1 decimal places, eg. 15.2%.) Gross profit rates 2015 % 2016 % 2017 % The gross profit rate in 2016 and 2017