**Only answer e-h sub questions
answer for a) to d)
Refer to 2019 Annual Report (Form 10-K) of Apple Inc. provided and answer the following questions relating to Apples Consolidated Statements of Cash Flows. Refer to the notes to financial statements for additional relevant information. (a) Determine whether net cash flow from operations is stable through time. (b) Did Apples operating assets and liabilities increase or decrease between the year ended September 29, 2018, and the year ended September 28, 2019? By how much? What items contributed most to the change? (c) Compare net cash flow from operations to net income. Explain why they differ. (d) Suppose a friend of yours commented, "Apple must have poor financial management. It made a profit of $55,256 million in the year ended September 28, 2019, and it generated $69,391 million in cash from operations, yet it paid only $14,119 million in dividends. Its shareholders should expect more." Respond to your friend's comment. (e) Did Apples net cash used by investing activities increase or decrease between the year ended September 29, 2018, and year ended September 28, 2019? By how much? What were the major causes of the change? (f) What were the primary uses of cash by investing activities in the year ended September 28, 2019? (g) Did Apples net cash used by financing activities increase or decrease between the year ended September 29, 2018, and the year ended September 28, 2019? By how much? What were the major causes of the change? (h) What were the primary providers of cash or uses of cash by financing activities in the year ended September 28, 2019? (i) Relate net cash flow from operations to investing and dividend payment needs in the year ended September 28, 2019. Locate Management's Discussion and Analysis. Look under the section titled Liquidity and Capital Resources. What does management have to say? What are your comments? (a) Net cash flow from operations looks almost stable within the range from $70,000 to 80,000 millions year on year. As we can see from the last three years, that it depends upon net income of the company. For example - net income for 2019 is decreased accordingly net cash flow from operations is also decreased in that year 2019. So we can conclude that net cash flow from operations is in line with the fluctuation in net income. (b) Changes to assets and liabilities during the year amounts to inflow and outflow of cash in the cash flow statement. Overall we can see that approx $4,000 million is cash outflow is their on account of changes in assets and liabilities. The major items were other current and non-current liabilities, accounts payable and vendor non- trade receivables. (c) Net cash flow from operations is line with net income of the company. Higher net income has generated higher net cash flow from operations in the years. They slightly differs because of fluctuation of net income in last three years. (d) The Company had paid $14,119 million in dividends out of profit of $55,256 million earned during the year. The dividend payout ratio is almost 25% and is comparable to market trends. Overall investors see 25% as the good rate of return on their investments. Further the Company has invested significant amount on share repurchases during the year. The dividend payout is not on account of poor financial management but other commitments such as share repurchases, payment of long term borrowings etc. Additionally some portion of retained earnings is always plough back into the company as reinvestment. Refer to 2019 Annual Report (Form 10-K) of Apple Inc. provided and answer the following questions relating to Apples Consolidated Statements of Cash Flows. Refer to the notes to financial statements for additional relevant information. (a) Determine whether net cash flow from operations is stable through time. (b) Did Apples operating assets and liabilities increase or decrease between the year ended September 29, 2018, and the year ended September 28, 2019? By how much? What items contributed most to the change? (c) Compare net cash flow from operations to net income. Explain why they differ. (d) Suppose a friend of yours commented, "Apple must have poor financial management. It made a profit of $55,256 million in the year ended September 28, 2019, and it generated $69,391 million in cash from operations, yet it paid only $14,119 million in dividends. Its shareholders should expect more." Respond to your friend's comment. (e) Did Apples net cash used by investing activities increase or decrease between the year ended September 29, 2018, and year ended September 28, 2019? By how much? What were the major causes of the change? (f) What were the primary uses of cash by investing activities in the year ended September 28, 2019? (g) Did Apples net cash used by financing activities increase or decrease between the year ended September 29, 2018, and the year ended September 28, 2019? By how much? What were the major causes of the change? (h) What were the primary providers of cash or uses of cash by financing activities in the year ended September 28, 2019? (i) Relate net cash flow from operations to investing and dividend payment needs in the year ended September 28, 2019. Locate Management's Discussion and Analysis. Look under the section titled Liquidity and Capital Resources. What does management have to say? What are your comments? (a) Net cash flow from operations looks almost stable within the range from $70,000 to 80,000 millions year on year. As we can see from the last three years, that it depends upon net income of the company. For example - net income for 2019 is decreased accordingly net cash flow from operations is also decreased in that year 2019. So we can conclude that net cash flow from operations is in line with the fluctuation in net income. (b) Changes to assets and liabilities during the year amounts to inflow and outflow of cash in the cash flow statement. Overall we can see that approx $4,000 million is cash outflow is their on account of changes in assets and liabilities. The major items were other current and non-current liabilities, accounts payable and vendor non- trade receivables. (c) Net cash flow from operations is line with net income of the company. Higher net income has generated higher net cash flow from operations in the years. They slightly differs because of fluctuation of net income in last three years. (d) The Company had paid $14,119 million in dividends out of profit of $55,256 million earned during the year. The dividend payout ratio is almost 25% and is comparable to market trends. Overall investors see 25% as the good rate of return on their investments. Further the Company has invested significant amount on share repurchases during the year. The dividend payout is not on account of poor financial management but other commitments such as share repurchases, payment of long term borrowings etc. Additionally some portion of retained earnings is always plough back into the company as reinvestment
