Required: 1. Identify the total amount of cash and cash equivalents for fiscal years ended (a) September 30, 2017, and (b) September 24, 2016. 2. Compute cash and cash equivalents as a percent of total current assets, total current liabilities, total shareholders' equity, and total assets at fiscal year-end for both 2017 and 2016. 3. Compute the percent change between the beginning and ending year amounts of cash and cash equivalents for fiscal years ended (a) September 30, 2017, and (b) September 24, 2016. 4. Compute the days' sales uncollected as of (a) September 30, 2017, and (b) September 24, 2016. 5. Does Apple's collection of receivables show a favorable or unfavorable change? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Identify the total amount of cash and cash equivalents for fiscal years ended (a) September 30, 2017, and (b) September 24, 2016. (Enter your answers in millions.) $ in millions a. b. September 30, 2017 September 24, 2016 Required 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Compute the percent change between the beginning and ending year amounts of cash and cash equivalents for fiscal years enc September 30, 2017, and (b) September 24, 2016. (Round percentage values to 1 decimal place.) Percent Change a. Per the statement of cash flows for year ended September 30, 2017 ($ millions): b. Per the statement of cash flows for year ended September 24, 2016 ($ millions) 2 % Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Compute the days' sales uncollected as of (a) September 30, 2017, and (b) September 24, 2016. (Round your answers to 1 decimal places.) Days' Sales Uncollected a. September 30, 2017 b. September 24, 2016 days days Required 3 Required 5 > September 24, 2016 $ Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 30, 2017 ASSETS Current assets Cash and cash equivalents $ 20,289 Short-term marketable securities 53,892 Accounts receivable, less allowances of $58 and $53, respectively 17,874 Inventories 4,855 Vendor non-trade receivables 17,799 Other current assets 13,936 Total current assets 128,645 Long-term marketable securities 194,714 Property, plant and equipment, net 33,783 Goodwill 5,717 Acquired intangible assets, net 2,298 Other non-current assets 10,162 Total assets $ 375,319 20,484 46,671 15,754 2,132 13,545 8,283 106,869 170,430 27,010 5,414 3,206 8,757 321,686 $ LIABILITIES AND SHAREHOLDERS' EQUITY $ $ Current liabilities Accounts payable Accrued expenses Deferred revenue Commercial paper Current portion of long-term debt Total current liabilities Deferred revenue, non-current Long-term debt Other non-current liabilities Total liabilities Commitments and contingencies 49,049 25,744 7,548 11,977 6,496 100,814 2,836 97,207 40,415 241,272 37,294 22,027 8,080 8,105 3,500 79,006 2,930 75,427 36,074 193,437 Shareholders' equity Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 5,126,201 and 5,336,166 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income (loss) Total shareholders' equity Total liabilities and shareholders' equity 35,867 98,330 (150) 134,047 375,319 31,251 96,364 634 128,249 321,686 September 26, 2015 233,715 140,089 93,626 Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) Years ended September 30, 2017 September 24, 2016 Net sales $ 229,234 $ 215,639 Cost of sales 141,048 131,376 Gross margin 88,186 84,263 Operating expenses Research and development 11,581 10,045 Selling, general and administrative 15,261 14,194 Total operating expenses 26,842 24,239 Operating income 61,344 60,024 Other income (expense), net 2,745 1,348 Income before provision for income taxes 64,089 61,372 Provision for income taxes 15,738 15,685 Net income $ 48,351 $ 45,687 8,067 14,329 22,396 71,230 1,285 72,515 19,121 53,394 9.27 9.21 $ S 8.35 8.31 $ $ 9.28 9.22 Earnings per share: Basic Diluted Shares used in computing earnings per share: Basic Diluted Cash dividends declared per share 5,217,242 5,251,692 2.40 5,470,820 5,500,281 2.18 5,753,421 5,793,069 1.98 See accompanying Notes to Consolidated Financial Statements. Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) Years ended September 30, 2017 September 24, 2016 Net income $ 48,351 $ 45,687 Other comprehensive income (loss): Change in foreign currency translation, net of tax effects of $(77), $8 and $201, respectively 224 75 Change in unrealized gains/losses on derivative instruments: September 26, 2015 $ 53,394 (411) 1,315 2,905 (1,477) (3,497) (741) (734) (162) (592) Change in unrealized gains/losses on derivative instruments: Change in fair value of derivatives, net of tax benefit (expense) of $(478), $(7) and $(441), respectively Adjustment for net (gains) losses realized and included in net income, net of tax expense (benefit) of $475, $131 and $630, respectively Total change in unrealized gains/losses on derivative instruments, net of tax Change in unrealized gains/losses on marketable securities: Change in fair value of marketable securities, net of tax benefit (expense) of $425, $(863) and $264, respectively Adjustment for net (gains) losses realized and included in net income, net of tax expense (benefit) of $35, $(31), and $(32), respectively Total change in unrealized gains/losses on marketable securities, net of tax Total other comprehensive income (loss) Total comprehensive income (782) 1,582 (483) (64) 56 (846) (784) 47,567 1,638 979 46,666 (424) (1,427) 51,967 $ See accompanying Notes to Consolidated Financial Statements. Common Stock and Additional Paid-In Capital Shares Amount 5,866,161 $ 23,313 - $ Retained Earnings 87,152 53,394 Other Comprehensive Total Income Shareholders (Loss) Equity $ 1,082 $ 111,547 53,394 (1,427) (1,427) (11,627) (36,026) - 3,586 - (11,627) (36,026) (325,032) 3,586 | 37,624 (231) (609) - (840) 748 27,416 5,578,753 $ $ 92,284 $ (345) $ 45,687 979 748 119,355 45,687 979 (12,188) (29,000) 4,262 (12,188) (29,000) Balances as of September 27, 2014 Net income Other comprehensive income (loss) Dividends and dividend equivalents declared Repurchase of common stock Share-based compensation Common stock issued, net of shares withheld for employee taxes Tax benefit from equity awards, including transfer pricing adjustments Balances as of September 26, 2015 Net income Other comprehensive income (loss) Dividends and dividend equivalents declared Repurchase of common stock Share-based compensation Common stock issued, net of shares withheld for employee taxes Tax benefit from equity awards, including transfer pricing adjustments Balances as of September 24, 2016 Net income Other comprehensive income (loss) Dividends and dividend equivalents declared Repurchase of common stock Share-based compensation Common stock issued, net of shares withheld for employee taxes Tax benefit from equity awards, including transfer pricing adjustments Balances as of September 30, 2017 (279,609) TIL 4,262 37,022 (806) (419) - (1,225) 5,336,166 $ 379 31,251 $ 634 $ 96,364 $ 48,351 379 128,249 48,351 (784) (12,803) (33,001) 4,909 - (784) - - (12,803) (33,001) (246,496) 4,909 36,531 (913) (581) (1,494) 620 620 134,047 5,126,201 $ 35,867 $ 98,330 $ (150) $ See accompanying Notes to Consolidated Financial Statements. 417 233 Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS bos) Year ended September 30, 2017 September 24, 2016 September 26, 2015 Cash and cash equivalents, beginning of the year 20.4865 21.120 S 13.566 Operating activities Netice 48,351 45,687 52196 Adjustments to reconcile et income to cash generated by operating activities Depreciation and animation 10,157 10.505 11.257 Share-based compensation expense 4.800 4,210 3.586 Deferred income tax expense 5.966 1.382 Other (166) 486 385 Changes in operating assets and liabilities: Accounts receivable, et ( 2093) 527 L ories (2,723) 217 (238) Vendor non-trade receivables (4,254) (51) 0.735) Other current and current assets (5,318) 1,055 Accounts payable 9.IR 1.837 5,001 Deferred revenue (626) (1.554) 1,042 Other current and non-current liabilities (156) (2,033) 9.OSR Cash generated by operating activities 63,598 65.824 1.266 Investing activities: Purchases of marketable securities (159.486) (142,428) (166,402) Proceeds from maturities of marketable securities 31.775 21.258 14,538 Proceeds from sales of marketable securities 94564 90,536 107,447 Payments made in connection with business acquisitions, net (329) (297) (343) Payments for acquisition of property, plant and equipment (12.451) (12,734) (11.247) Payments for acquisition of intangible assets (364) (814) Payments for sale investments, met (395) (1.388) Other (110) (26) Cash used in investing activities (46.446) (45.977) (56,274) Financing activities: Proceeds from inance of common stock 495 543 Excess tax benefits from equity awards 627 407 749 Payments for taxes related to not share witlement of equity awards (1.874) (1.570) (1.499) Payments for dividends and dividend equivalents (12,769) (12,150) (11.561) Repurchases of common stock (32.900) (29,722 35.253) Proceeds from inance of term debt, met 28,662 24,95 27.114 Repayments of term debt 3.500) 2.500) Change in commercial per, net 3.852 (397) 2.191 Cashed in financing activities (17.347) 20,483) (17,716) Increase (decrease in cash and cash equivalents (636) 72276 Cash dashuivalents, end of the year 20.289 20.4845 21.120 SSS Supplemental cash flow disclosure Cash paid for income taxes, et Cash paid for interest $ 11,591 2,0925 10.46 ,316 $ 5 13.252 $14 See accompanying Notes to Consolidated Financial Statements. Google Inc. (Alphabet Inc.) CONSOLIDATED BALANCE SHEETS (In millions, except share and par value amounts which are reflected in thousands and par value per share amounts) December 31, 2016 December 31, 2017 S 12918 23.415 10,715 91,156 101.871 18,336 86.333 14,137 2983 124,30 7,813 268 4.575 1015, UN 5,878 383 34.234 3.307 16,468 1.819 167,497 42.383 2,692 16,747 2.672 197.295 3,976 Assets Current assets Cash and cash equivalents Marketable securities Tocal cash, cash equivalents, and marketable securities Accounts receivable, net of allowance of $467 and $674 Income taxes receivable, net Inventory Other current assets Toual current assets Non-marketable investments Deferred income taxes Property and equipment, net Intangible assets, net Goodwill Other non-current assets Tocal assets .labilities and Stockholders' Equity Current liabilities Accounts payable Accrued compensation and benefits Accrued expenses and other current liabilities Accrued revenue share Deferred revenue Income taxes payable, net Tocal current liabilities Long-term deht Deferred revenge, no-current Income taxes payable, non-current Deferred income taxes Other long-term liabilities Tocal liabilities Commitments and contingencies Stockholders' equity: Convertible preferred stock, SD.001 par value per share, 100,000 shares authorized; no shares issued and outstanding Class A and Class common stock, and Class C capital stock and additional paid-in capital, 50.001 par value per share: 15,000,000 shares authorized (Class A 9,000,000, Class B 2.000.000 Class C 3.000.000), 691.293 (Class A 296.992. Class B 47,437, Class C 346.264) and 694,783 (Class A 298,470. Class B 46.972 Class C 349 341) shares iwwed and outstanding Accumulated other comprehensive loss Retained earnings Total stockholders' equity Tocal liabilities and stockholders' equity 3,137 4.581 10,177 3,975 2,942 1,099 554 16,756 3,935 24,183 3,969 212 12,812 4,677 226 2.665 28,461 3,059 36,07 (2,402) 105,131 139,036 167,497 (0923 113,247 152.502 197,295 $ Google is part of Alphabet, but we loosely refer to Alphabet as "Google" because of its global familiarity and that Google provides 99% of Alphabet's $110,855 billion in revenues. 2016 90,272 2017 110,855 $ Google Inc. (Alphabet Inc.) CONSOLIDATED STATEMENTS OF INCOME (In millions) Year Ended December 31 2015 Revenues 74,989 Costs and expenses Cost of revenues 28,164 Research and development 12.282 Sales and marketing 9,047 General and administrative 6,136 European Commission fino Total costs and expenses 55,629 Income from operations 19.360 Other income (expense), net Income before income taxes 19,651 Provision for income taxes 3.303 Net income 16.348 Less: Adjustment Payment to Class C capital stockholders Net income available to all wockholders 15,826 35,138 13,948 10.485 6,985 45.583 16,625 12,893 6,872 2.736 84,709 26,146 66,556 23,716 24.150 4,672 19,478 27.193 14.531 12,662 19.478 $ 12,662 "Google is part of Alphabet, but we loosely refer to Alphabet as "Google" because of its global familiarity and that Google provides 99% of Alphabet's $110.855 billion in revenues. See accompanying notes. 2016 19,478 2017 12,662 S (599) 1.563 Google Inc. (Alphabet Inc.) CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) Year Ended December 31 2015 Net income 16,348 $ Other comprehensive income (loss: Change in foreign currency translation adjustment (1.067) Available for sale investments: Change in net unrealized gains (losses) (715) Less: reclassification adjustment for net(gains) losses included in net income 208 Net change (net of tax effect of S29. SO, and 50) (507) Cash flow hedges: Change in met unrealized gains (losses) 676 Less: reclassification adjustment for net (gains) losses included in net income (1.003) Net change (net of tax effect of SIIS, S61, and $247) (327) Other comprehensive income (loss) (1.901) Comprehensive income 14,447 5 (314) 221 307 105 (93) 412 (638) SIS (351) 166 (528) 18,950 (545) 1.410 14,072 $ "Google is part of Alphabet, but we loosely refer to Alphabet as "Google" because of its global familiarity and that Google provides 99% of Alphabet's S110,855 billion in revenues See accompanying notes. Google Inc. (Alphabet Inc.)" CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (In millions, except share amounts which are reflected in thousands) Class A and Class Common Stock, Class C Accumulated Capital Stock and Other Additional Pald-In Capital Comprehensive Retained Shares Amount Income (0) Karnings Balance as of December 31, 2014 680,172 $ 28,767 $ 2 5 .066 Common and capital sack issued 8,714 Stock-hand compensation expense 5.151 Stock-based compensation tax benefits Tax withholding related to vesting of restricted stock units (2,779) Repurchases of capital sock (2.391) (1.609) Adjustment Payment to Class capital stockholders (522) Net income 16,348 Other comprehensive lass (1,901) Ralance as of December 31, 2015 687,348 32,982 (1. 874) Total Stockholders Equity 103,860 5.151 NIS (2,779) (1,7 ) 16,348 (1.001) 1204931 (183) 9.106 Cumulative effect of accounting change Common and capical stock issued Stock-based compensation expense Tax withholding related to vesting of restricted stock units Repurchases of capital stock Net income Other comprehensive loss Halance as of December 31, 2016 298 6,70%) (3,597) (256) 298 6,700 (3,597) (693) 19,478 (5,161) 0 (3.437) 19,478 (528) (2402) 691,293 36,307 139,000 0 (15) 8.6.52 212 212 7.69 Cumulative effect of accounting change Common and capital stock issued Stock-based compensation expense Tax withholding related to vesting of restricted stock units Repurchases of capital stock Sale of diary Shares Net Income Other comprehensive loss Balances of December 31, 2017 (4,373) (4.4) (5.162) (451) (315) 722 12.12 12.662 1,410 (992) $ 64,783 $ 40,247 S 113,247 $ 152,502 Google is part of Alphabet, but we loosely refer to Alphabet as "Google" because of its global familiarity and that Google provides 99% of Alphabet's $110.855 billion in revenues 2016 2017 19,478 5 12,662 5.267 6.103 6,703 (38) 7,679 258 336 275 174 137 (2.578) 3.125 (3,768) 8,211 (2.164) 312 110 4,891 1.SIS 593 399 955 223 390 36,036 37,091 Google Inc. (Alphabet Inc.) CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) Year Ended December 31 2015 Operating activities Net income 16,348 5 Adjustments Depreciation and impairment of property and equipment 4.132 Amortization and impairment of intangible assets 931 Stock-based compensation expense 5.203 Deferred income taxes (179) Loss on marketable and non-marketable investments.net Other 212 Changes in assets and liabilities, set of cffects of acquisitions: Accounts receivable (2,095) Income taxes, net (179) Other assets (318) Accounts payable 203 Accrued expenses and other liabilities 1.597 Accrued revenue share Deferred revenue Net cash provided by operating activities 26.572 Investing activities Purchases of property and equipment (9,950) Proceeds from disposals of property and equipment Purchases of marketable securities (74,368) Maturities and sales of marketable securities 62.905 Purchases of non-marketable investments (2.326) Maturities and sales of non-earketable investments Cash collateral related to securities lending (350) Investments in reverse repurchase agreements Acquisitions, net of cash acquired, and purchases of intangible assets (236) Proceeds from collection of notes receivable Net cash used in investing activities (23,711) Financing activities Net payments related to stock-based award activities (2.375) Adiustment Payment to Class C capital stockholders (47) Repurchases of capital stock (1.780) Proceeds from issuance of debt, net of costs 13,705 Repayments of debt (13,728) Proceeds from sale of subsidiary shares Net cash used in financing activities (4.225 Effect of exchange rate changes on cash and cash equivalents Net decrease in cash and cash equivalents (1.798) Cash and cash equivalents at beginning of period 18.347 Cash and cash equivalents at end of period 16.549 (10.212) (13,184) 240 (84.509) 66,895 (1,109) 494 (2.428) (92,195) 73,959 (1,745) 533 (986) (287) 1.419 (31.401) (31.165) (3.300) (4.166) (3.693) 8.729 (10,066) (4.846) 4.29) (4,377) (8,332) (170) 0.631) 16,569 12,918 (8.208) 405 (2.203) 12,918 10,715 $ $ Supplemental disclosures of cash flow information Cash paid for taxes, net of refunds Cash paid for interest, net of amounts capitalized S S 3,651 S 96 1,64356,191 84 584 "Google is part of Alphabet, but we loosely refer to Alphabet as "Google" because of its global familiarity and that Google provides 99% of Alphabet's $110,855 billion in revenues