Required: 1. Using fiscal 2015 as the base year, compute trend percents for fiscal years 2015, 2016, and 2017 for net sales, cost of sales, operating income, other income (expense) net, provision for income taxes, and net income. 2. Compute common-size percents for fiscal years 2016 and 2017 for the following categories of assets: (a) total current assets; (b) property, plant and equipment, net; and (c) goodwill plus acquired intangible assets, net. 3. Using current assets as a percent of total assets to measure liquidity, did Apple's asset makeup become more liquid or less liquid in 2017?

September 24, 2016 $ 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 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 Other non-current assets S S LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable s 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 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 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 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 22396 71.230 1,285 72,515 19,121 53,394 9.27 S S $ $ 8.35 8.31 $ S 9.28 9.22 9.21 Earnings per share: Basic Diluted Shares used in computing earnings per share: Basie Diluted Cash dividends declared per share 5.217.242 5,251,692 5.470,820 5.500,281 2.18 5,753,421 5,793,069 1.98 2.40 S September 26, 2015 53.394 (411) 7 2.905 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 S(77), $8 and 9201, respectively 224 75 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 1.315 Adjustment for net (gains) losses realized and included in net income, net of tax expense (benefit) of $475, $131 and $630, respectively (1,477) (741) Total change in unrealized gains/losses on derivative instruments, net of tax (162) (734) 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 (782) 1.582 Adjustment for net (gains) losses realized and included in net income, net of tax expense (benefit of $35, $(31), and S(32), respectively (64) 56 Total change in unrealized gains/losses on marketable securities, net of tax (846) 1,638 Total other comprehensive income (loss) 979 Total comprehensive income 47,567 46.666 (3.497) (592) (483) 59 1991 (424) (1.427) 51.967 Apple Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY In millions, except number of shares which are reflected in thousands) Accumulated Other Common Stock and Comprehensive Total Additional Pakl-In Capital Retained Income Sharehoklers Shares Amor Earnings (Low) Fruity ances as of September 27, 2014 5.866,161 $ 23.313 87.152 1.082 111.547 et income 53,194 53 394 Wher comprehensive income (kos) (1.427) (1.427) Dividence and dividend equivalents declared (11.627) (11.627) Repurchase of common stock (325.032) (36.026) (36,026) Share-based compensation 3.586 3.586 common stock issued, net of shares withheld for employee taxes 37.624 (31) (840) ax benefit from equity awards, including transfer pricing adjustments 748 748 ances as of September 26, 2015 5.578,753 27,416 S 92.284 S (345) S 1 19.355 it income 45.687 45,687 ther comprehensive income (los) 979 979 Dividends and dividend equivalents declared (12.188) (12.188) Repurchase of common stock (279.609) Share-based compensation 4.262 4.262 Common stock issued, net of shares withheld for employee taxes 37.622 806) (419) (1.225) Bax benefit from equity awards, including transfer pricing adjustments 379 379 ances as of September 24, 2016 5.336,166 31.2515 96,364 $ 634 S 128.249 wat income 48.351 48351 Wher comprehensive income (loss) (784) (84) Dividends and dividend equivalents declared (12.803) (12.803) Repurchase of common stock (246,496) (33.001) hare-based compensation 4.909 4,909 common stock issued, net of shares withheld for employee taxes 36.531 13) (581) hax benefit from equity wards, including transfer pricing adjustments 620 620 cances as of September 30, 2017 SIM 201 35.867 98.330 (150) S 134,047 September 26, 2015 13.844 53,394 11.257 3.586 1.382 417 (238) Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) cars ended September 30, 2017 September 24, 2016 ish and cash equivalents, beginning of the year 21.484 21.120 perating activities Net income 48,351 45.687 Adjustments to reconcile net income to cash gmented by operating activities: Depreciation and amortization 10.157 10.305 Share-based compensation expense 4.840 4.210 Deferred income tax expense 5.966 4.938 Other 486 Changes in operating assets and liabilities: Accounts receivable, na (2.093) 527 Inventaries (2.723) 217 Vendor non-trade receivables (51) Other current and non-current assets (5.318) 1.055 Accounts payable 9.618 1.837 Deferred revenue (626) (1.554) Other current and non-current liabilities (154) (2.033) Cash generated by openting activities 63 598 65,824 vesting activities: Purchases of marketable securities (159.486) (142,428) Proceeds from maturities of marketable securities 31.775 21.258 Proceeds from sales of marketable securities 94564 90.536 Payments made in connection with business acquisitions, net Payments for acquisition of property.plant and equipment (12,451) (12,734) Payments for acquisition of intangible assets 1:44) (814) Payments for strategie investments, net (395) (1.388) Other 220 (110) Cash used in investing activities (45.977) (3.735) (283) 5.001 1.042 9058 81.266 (166,412) 14,538 107.447 (11.247) (241) (26) (56,274) 555 627 (1.874) 543 7419 Financing activities: Proceeds from issuance of common stock Excess tax benefits from equity ward Payments for taxes related to net share settlement of equity awards Payments for dividends and dividend equivalents Repurchases of common stock Proceecks from issuance of term debt, net Repayments of term debt Change in commercial papar, na Cash used in financing activities Increase (decrease) in cash and cash equivalents Cash and cash equivalents, end of the year 495 407 (1.570) (12.150) (29,722) 24,954 (2.500) (397) (20.483) (636) 20.484 (32.900) 28.662 (3.500) 3.852 (17.347) (195) 20299 (35.253) 27.114 2.191 (17.716) 7.276 21.120 S Supplemental cash flow discsure: Cash paid for income taxes, net Cash paid for interest S 10.444 13.252 11.591 2.092 $ $ $ 1.316 514 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using fiscal 2015 as the base year, compute trend percents for fiscal years 2015, 2016, and 2017 for net sales, cost of sales, operating income, other income (expense net provision for income taxes, and net income. (Input all the values as positive numbers. Enter your answers in millions. Round your percentage answers to 1 decima place.) Fiscal 2017 % Fiscal 2016 % % Fiscal 2015 % % Net Sales Cost of sales Operating income Other income expense) Income taxes (provision for income taxes) Net income % % % % % Required 1 Required 2 > property, plant and equipment, net; and (c) goodwill plus acquired Intangible assets, net. 3. Using current assets as a percent of total assets to measure liquidity, did Apple's asset makeup become more liquid or less li 2017? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute common-size percents for fiscal years 2016 and 2017 for the following categories of assets: (a) total current assets; (b) property, plant and equipment, net; and (c) goodwill plus acquired intangible assets, net. (Enter your answers in millions Round your percentage answers to 1 decimal place.) Sep 30, 2017 Sep. 24, 2016 Total current assets Property plant and equipment, net Goodwill and other intangible assets % % Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using current assets as a percent of total assets to measure liquidity, did Apple's asset makeup become more liquid or less liquid in 2017? Apple's asset makeup become in 2017