Refer to Apples financial statements in Appendix A to answer the following. Assume that the amounts reported for inventories and cost of sales reflect items purchased in a form ready for resale.

Compute the net cost of goods purchased for the year ended September 28, 2019. (Enter your answers in millions of dollars.)

Current assets Cash and cash equivalents Marketable securities Accounts receivable, net Inventories Vendor non-trade receivables Other current assets Total current assets Non-current assets Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 28, 2019 ASSETS S 48,844 51,713 22,926 4,106 22,878 12,352 162,819 105,341 37,378 32,978 175,697 338,516 LIABILITIES AND SHAREHOLDERS' EQUITY 46,236 37,720 5,522 5,980 10,260 105,718 91,807 50,503 142,310 248,028 45,174 45,898 Marketable securities Property, plant and equipment, net Other non-current assets Total non-current assets Total assets Current liabilities Accounts payable Other current liabilities Deferred revenue Commercial paper Term debt Total current liabilities Non-current liabilities Term debt Other non-current liabilities Total non-current liabilities Total liabilities Commitments and contingencies Shareholders' equity Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 4,443,236 and 4,754,986 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income (loss) Total shareholders' equity Total liabilities and shareholders' equity See accompanying Notes to Consolidated Financial Statements. (584) 90,488 338,516 September 29, 2018 $ 25,913 40,388 23,186 3,956 25,809 12,087 131,339 170,799 41,304 22,283 234,386 365,725 55,888 33,327 5.966 11,964 8,784 115,929 93,735 48.914 142,649 258.578 40,201 70,400 (3,454) 107,147 365,725 APPLE A-2 Appendix A Financial Statement Information Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) September 28, 2019 September 29, 2018 S S 213,883 46,291 225,847 39,748 260,174 265,595 144,996 148,164 16,786 15,592 161,782 163,756 98,392 101,839 16.217 14,236 18.245 16,705 34,462 30,941 63,930 70,898 1,807 2.005 65.737 72,903 10,481 13,372 55,256 59,531 S 11.97 S 12.01 S 11.89 S 11.91 4,955,377 4,617,834 4,648,913 5,000,109 See accompanying Notes to Consolidated Financial Statements. Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) Change in foreign currency translation, net of tax Change in unrealized gains/losses on derivative instruments, net of tax: Change in fair value of derivatives Adjustment for net (gains) losses realized and included in net income Total change in unrealized gains/losses on derivative instruments Change in unrealized gains/losses on marketable securities, net of tax: Change in fair value of marketable securities Adjustment for net (gains) losses realized and included in net income Total change in unrealized gains/losses on marketable securities Total other comprehensive income (loss) Total comprehensive income Years ended Net sales: Products Services Cost of sales: Products Services Operating expenses: Total net sales Total cost of sales Gross margin Research and development Selling, general and administrative Total operating expenses Operating income Other income (expense), net Income before provision for income taxes Provision for income taxes Net income Earnings per share: Basic Diluted Shares used in computing earnings per share: Basic Diluted Years ended Net income Other comprehensive income (loss): September 30, 2017 S 196,534 32,700 229,234 126,337 14,711 141,048 88,186 11,581 15,261 26,842 61,344 2,745 64,089 15,738 48.351 9.27 9.21 5,217,242 5,251,692 September 28, 2019 September 29, 2018 September 30, 2017 55,256 $ 59.531 S 48,351 (408) (525) 224 (661) 523 23 382 (638) 905 (3,407) (3,406) (3,026) 56,505 3,802 25 3,827 2,781 58,037 S See accompanying Notes to Consolidated Financial Statements. S $ 1,315 (1,477) (162) (782) (64) (846) (784) 47,567 Appendix A Financial Statement Information Apple Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In millions) September 28, 2019 107,147 September 29, 2018 $ 134,047 40,201 781 35,867 669 (2,002) (1.778) 6,194 5,443 45,174 40,201 70,400 98,330 55,256 59,531 (14,129) (13,735) (1,029) (948) (67,101) (73,056) 2,501 278 45,898 70,400 (3,454) (150) 2,781 (3,026) 89 (278) (584) (3,454) 107,147 Years ended Total shareholders' equity, beginning balances 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 Tax benefit from equity awards, including transfer pricing adjustments Ending balances Beginning balances Net income Dividends and dividend equivalents declared Common stock withheld related to net share settlement of equity awards Common stock repurchased Cumulative effects of changes in accounting principles Ending balances Accumulated other comprehensive income (loss) Beginning balances Other comprehensive income (loss) Cumulative effects of changes in accounting principles Ending balances Total shareholders' equity, ending balances Retained earnings 90,488 See accompanying Notes to Consolidated Financial Statements. A-3 September 30, 2017 $ 128,249 31,251 555 (1,468) 4,909 620 35,867 96,364 48,351 (12,803) (581) (33,001) 98,330 (784) (150) 134,047 APPLE Required 1 Required 2 Required 3 Required 4 Compute the current ratio and acid-test ratio as of September 28, 2019, and September 29, 2018. (Ent millions of dollars.) 2019 2018 $ millions Current Ratio Acid-Test Ratio Current Ratio Acid-Test Ratio Current assets Cash and equivalents Marketable securities (current) Accounts receivables, net Inventories, net Vendor non-trade receivables Other current assets Total current assets Total quick assets Total current liabilities Ratio $ $ $ 48,844 $ 48,844 $ 51,713 51,713 22,926 22,926 4,106 22,878 12,352 162,819 $ 123,483 105,718 $ 105,718 $ 1.54 1.17 25,913 40,388 23,186 89,487 115,929 0.77 APPLE A-4 Appendix A Financial Statement Information Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) September 28, 2019 25,913 55,256 12,547 6,068 Years ended 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 expense (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 Purchases of non-marketable securities Proceeds from non-marketable securities Other Cash generated by (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 (Repayments of) commercial paper, net 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 (340) (652) 245 (289) September 29, 2018 20,289 59,531 10,903 5,340 (32.590) (444) (5.322) 828 (8,010) (423) 9,175 38,449 77,434 (71.356) 55,881 47,838 (13,313) (721) (1,871) 353 (745) 2,931 873 (1,923) (625) (4,700) 69,391 (39,630) 40,102 56,988 (10,495) (624) (1,001) 1,634 (1,078) 45,896 781 (2,817) (14,119) (66,897) 6,963 (8,805) (5,977) (105) (90,976) 24,311 S 50,224 15,263 $ S 3,423 S See accompanying Notes to Consolidated Financial Statements. 16,066 669 (2.527) (13,712) (72,738) 6,969 (6,500) (37) (87,876) 5,624 25.913 10,417 September 30, 2017 20,484 48,351 10,157 4,840 5,966 S 3,022 $ (166) (2,093) (2,723) (4,254) (5,318) 8,966 (593) 1,092 64,225 (159,486) 31,775 94,564 (12,451) (329) (521) 126 (124) (46,446) 555 (1,874) (12,769) (32,900) 28,662 (3,500) 3,852 (17,974) (195) 20,289 11,591 2,092