Questions:

What would be the effect on the accounting equation if Apple collected all of its receivables (increase, decrease, or NE)?

A=L+SE

Which type of activity (Operating, Investing, or Financing) from the Statement of Cash Flow generated the most positive cash flow for Apple in 2016?

Which statement would you use to decide if Apple was profitable

What is the current ratio used for?

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions 12 Months Ended Sep. 26, Sep. 24, 2016 2015 Sep. 27, 2014 Net sales Cost of sales Gross margin $ 215, 639 131, 376 84,263 $ 233, 715 140,089 93, 626 $ 182, 795 112, 258 70, 537 Operating expenses: Research and development Selling, general and administrative Total operating expenses 10, 045 14, 194 24, 239 8, 067 14, 329 22, 396 6, 041 11,993 18, 034 Operating income Other income/ (expense), net Income before provision for income taxes Provision for income taxes Net income 60, 024 1, 348 61, 372 15, 685 $ 45, 687 71, 230 1, 285 72, 515 19, 121 $ 53, 394 52, 503 980 53,483 13, 973 $ 39, 510 Earnings per share: Basic (in dollars per share) Diluted (in dollars per share) $ 8.35 $ 8.31 $ 9. 28 $ 9.22 $ 6.49 $ 6.45 Shares used in computing earnings per share: Basic (in shares) Diluted (in shares) 5, 470, 820 5, 500, 281 5, 753, 421 5, 793, 069 6,085, 572 6, 122, 663 $ 2.18 $ 1.98 $ 1.82 Cash dividends declared per share (in dollars per share) income statement A B Sep. 24, 2016 Sep. 26, 2015 $ 20,484 46, 671 15, 754 2, 132 13, 545 8, 283 106, 869 $ 21, 120 20,481 16,849 2, 349 13, 494 15, 085 89, 378 170, 430 27,010 5, 414 3, 206 8, 757 321, 686 164, 065 22, 471 5, 116 3,893 5, 422 290, 345 CONSOLIDATED BALANCE SHEETS- USD ($) $ in Millions 1 2 Current assets: 3 Cash and cash equivalents 4 Short-term marketable securities 5 Accounts receivable, less allowances of $53 and $63, respectively 6 Inventories 7 Vendor non-trade receivables 8 Other current assets 9 Total current assets 10 11 Long-term marketable securities 12 Property, plant and equipment, net 13 Goodwill 14 Acquired intangible assets, net 15 Other non-current assets 16 Total assets 17 18 Current liabilities: 19 Accounts payable 20 Accrued expenses 21 Deferred revenue 22 Commercial paper 23 Current portion of long-term debt 24 Total current liabilities 25 26 Deferred revenue, non-current 27 Long-term debt 28 Other non-current liabilities 29 Total liabilities 30 31 Commitments and contingencies 32 33 Shareholders' equity: Common stock and dditional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 5, 336, 166 and 5, 578, 753 shares issued 34 and outstanding, respectively 35 Retained earnings 36 Accumulated other comprehensive income/(loss) 37 Total shareholders' equity 38 Total liabilities and shareholders' equity 39 Balance sheet 40 37, 294 22, 027 8, 080 8, 105 3,500 79, 006 35, 490 25, 181 8, 940 8, 499 2,500 80, 610 2, 930 75, 427 36, 074 193, 437 3, 624 53, 329 33, 427 170, 990 31, 251 27, 416 96, 364 634 128, 249 $ 321, 686 92,284 (345) 119, 355 $ 290, 345 Retained Earnings Accumulated Other Comprehensive Income/ (Loss) Total Common Stock and Additional Paid-In Capital 6, 294, 494 $ 19, 764 $ 104, 256 $ (471) 0 0 39, 510 0 0 (11, 215) 0 1.553 0 39,510 1.553 (11,215) ( (188, 677) (45, 000) 0 0 0 0 (45,000) 2,863 S 2,863 60, 344 0 $ (49) $ 735 (399) 0 (448) 735 0 5, 866, 161 $ 23, 313 87, 152 1,082 111, 547 CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Millions Beginning Balances (in shares) at Sep. 28, 2013 Beginning Balances at Sep. 28, 2013 Increase (Decrease) in Stockholders' Equity (Roll Forward] Net income Other comprehensive income/ (loss) Dividends and dividend equivalents declared Repurchase of common stock (in shares) Repurchase of common stock Share-based compensation Common stock issued, net of shares withheld for employee taxes (in shares) Common stock issued, net of shares withheld for employee taxes Tax benefit from equity awards, including transfer pricing adjustments Ending Balances (in shares) at Sep. 27, 2014 Ending Balances at Sep. 27, 2014 Increase (Decrease) in Stockholders' Equity (Roll Forward) Net income Other comprehensive income/(loss) Dividends and dividend equivalents declared Repurchase of common stock (in shares) Repurchase of common stock Share-based compensation Common stock issued, net of shares withheld for employee taxes (in shares) Common stock issued, net of shares withheld for employee taxes Tax benefit from equity awards, including transfer pricing adjustments Ending Balances (in shares) at Sep. 26, 2015 Ending Balances at Sep. 26, 2015 Increase (Decrease) in Stockholders' Equity [Roll Forward] Net income Other comprehensive income/(loss) Dividends and dividend equivalents declared Repurchase of common stock (in shares) Repurchase of common stock Share-based compensation Common stock issued, net of shares withheld for employee taxes (in shares) Common stock issued, net of shares withheld for employee taxes Tax benefit from equity awards, including transfer pricing 53. 394 0 (11.627) 0 (1, 127) 0 53, 394 (1,127) (11,627) 0 0 $ 0 (325, 032) $0 $ 3, 586 37,624 (36, 026) 0 0 0 (36, 026) 3, 586 0 $ (231) $ 718 (609) 0 0 (840) $ 718 0 tttt 444 5,578,753 $ 27, 416 92, 284 (345) ++++44HHH HREE 0 0 45.687 0 (12, 188) 0 979 0 45, 687 979 (12, 188) (279, 609) (29,000) 0 0 0 (29, 000) 4,262 S 4,262 37, 022 (419) $ (806) $ 379 0 0 (1, 225) $ 379 0 37, 022 Common stock issued, net of shares withheld for employee taxes (in shares) Common stock issued, net of shares withheld for employee taxes Tax benefit from equity awards, including transfer pricing adjustments Ending Balances (in shares) at Sep. 24, 2016 Ending Balances at Sep. 24, 2016 $ (806) $ 379 (419) 0 0 0 (1, 225) $ 379 HHHHHHHH 5, 336, 166 $ 31, 251 $ 96, 364 $ 634 HHHHHHH HHHHHHH SRE (Stmt Stockholder Equity CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions 12 Months Ended Sep. 24, 2016 Sep. 26, 2015 Sep. 27, 2014 $ 21, 120 $ 13, 844 $ 14, 259 45, 687 53, 394 39, 510 10, 505 4, 210 4,938 11, 257 3,586 1, 382 7,946 2,863 2, 347 1,095 217 (51) 1,090 611 (238) (3, 735) (179) 5, 400 1,042 8, 746 81, 266 (4,232) (76) (2,220) 167 5,938 1, 460 6,010 59, 713 1, 791 (1,554) (2, 104) 65, 824 Statement of Cash Flows [Abstract] Cash and cash equivalents, beginning of the year 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 expense 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 made in connection with business acquisitions, net Payments for acquisition of property, plant and equipment Payments for acquisition of intangible assets Payments for strategic investments Other Cash used in investing activities Financing activities: Proceeds from issuance of common stock Excess tax benefits from equity awards 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 Change in commercial paper, net Cash used in financing activities Increase/ (Decrease) in cash and cash equivalents Cash and cash equivalents, end of the year (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) 0 (217, 128) 18, 810 189, 301 (3, 765) (9,571) (242) (10) 26 (22, 579) (26) (56, 274) 495 407 (1, 570) (12, 150) (29,722) 24, 954 (2,500) (397) (20,483) (636) 20, 484 543 749 (1,499) (11, 561) (35, 253) 27, 114 0 2, 191 (17, 716) 7, 276 21, 120 730 739 (1, 158) (11, 126) (45, 000) 11, 960 0 6, 306 (37,549) (415) 13, 844 (20, 483) (636) 20, 484 (17, 716) 7, 276 21, 120 (37,549) (415) 13, 844 Cash used in financing activities Increase/ (Decrease) in cash and cash equivalents Cash and cash equivalents, end of the year Supplemental cash flow disclosure: Cash paid for income taxes, net Cash paid for interest Cashflows 10, 444 $ 1,316 13, 252 $ 514 10, 026 $ 339