Refer to Note 2 and the retrospective adjustments to Apples fiscal 2009 balance sheet to the new accounting principle for certain products, including iPhones. For each balance sheet item adjusted, explain why the adjustment was necessary.

September 26, 2009 As Reported Adjustments As Amended $ $ Consolidated Balance Sheets (in millions, except share amounts) Current assets: Cash and cash equivalents Short-term marketable securities Accounts receivable, less allowance of $52 Inventories Deferred tax assets Other current assets Total current assets Long-term marketable securities Property, plant and equipment, net Goodwill Acquired intangible assets, net Other assets Total assets 5,263 $ 18,201 3,361 455 2,101 6,884 36,265 10,528 2,954 206 247 3,651 53,851 $ (966) (3,744) (4,710) 5,263 18,201 3,361 455 1,135 3,140 31,555 10,528 2,954 206 247 2,011 47,501 (1,640) (6,350) $ $ $ $ Current liabilities: Accounts payable Accrued expenses Deferred revenue Total current liabilities Deferred revenue - non-current Other non-current liabilities Total liabilities Commitments and contingencies Shareholders' equity: Common stock, no par value; 1,800,000,000 shares authorized; 899,805,500 shares issued and outstanding Retained earnings Accumulated other comprehensive income 5,601 $ 3,376 10,305 19,282 4,485 2,252 26,019 476 (8,252) (7,776) (3,632) 1.250 (10,158) 5,601 3,852 2,053 11,506 853 3,502 15,861 8,210 19,538 84 3,815 8,210 23,353 77 September 26, 2009 As Reported Adjustments As Amended $ $ Consolidated Balance Sheets (in millions, except share amounts) Current assets: Cash and cash equivalents Short-term marketable securities Accounts receivable, less allowance of $52 Inventories Deferred tax assets Other current assets Total current assets Long-term marketable securities Property, plant and equipment, net Goodwill Acquired intangible assets, net Other assets Total assets 5,263 $ 18,201 3,361 455 2,101 6,884 36,265 10,528 2,954 206 247 3,651 53,851 $ (966) (3,744) (4,710) 5,263 18,201 3,361 455 1,135 3,140 31,555 10,528 2,954 206 247 2,011 47,501 (1,640) (6,350) $ $ $ $ Current liabilities: Accounts payable Accrued expenses Deferred revenue Total current liabilities Deferred revenue - non-current Other non-current liabilities Total liabilities Commitments and contingencies Shareholders' equity: Common stock, no par value; 1,800,000,000 shares authorized; 899,805,500 shares issued and outstanding Retained earnings Accumulated other comprehensive income 5,601 $ 3,376 10,305 19,282 4,485 2,252 26,019 476 (8,252) (7,776) (3,632) 1.250 (10,158) 5,601 3,852 2,053 11,506 853 3,502 15,861 8,210 19,538 84 3,815 8,210 23,353 77