Please answer the questions below about Apple Inc. of 2019.

You may find the answer to the following questions in the first footnote titled Significant Accounting Policies.

1. What is the revenue recognition policy of the company?

2. Name the method used to depreciate fixed assets.

3. What are considered to be cash equivalents?

4. What type of inventory valuation system (LIFO, FIFO, WA, etc.) is used?

5. Check the balance sheet and footnotes and name the three categories of inventory and their amounts. (Please note that merchandise companies might not have all three categories.)

6. What classes of capital stock has the company issued?

7. For each class of stock: (1) how many shares are authorized, issued and/or outstanding at the balance sheet dates? (2) What is the par value?

8. Does the company have treasury stock? Or repurchased stock but not held as treasury stock? If yes, indicate the reason for the repurchase of stocks (this information can be found in the footnotes to the financial statements.)

9. Did the company declare cash dividends in current or prior year? If yes, indicate the amount for each year. In which statement do you see the payment?

10. Has the company issued stock dividends in current or prior year? If yes, state the number of shares issued?

2. Questions related to materials discussed in Appendix H:

1. Does the company have any investments? If yes, indicate the type of investments (debt or stock) for current and prior year. Investments represent what percentage of total assets?

2. How does the company account for its investments in Marketable Securities (I.e., cost or equity method)?

3. Does the company account for the investments as trading or available for sale securities?

4. Where are the unrealized gains/losses related to investments in securities reported/ How much was the amount for current and prior year?

3. Questions related to materials discussed in Chapter 12:

1. Which method of computing net cash provided by operating activities does the company use (direct or indirect)?

2. State the amount of cash flows provided/used by operating, investing, and financing activities in the current year and prior year.

3. What were the three most significant sources of cash?

4. What were the three most significant uses of cash?

5. Compute free cash flow for the company. What conclusion concerning the management of cash can be drawn from this data?