Required: 1. Using fiscal 2016 as the base year, compute trend percents for fiscal years 2016, 2017, and 2018 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 2017 and 2018 for the following categories of assets: (a) total current assets; (b) property, plant and equipment, net; and (c) accounts receivable, 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 2018? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using fiscal 2016 as the base year, compute trend percents for fiscal years 2016, 2017, and 2018 for net sales, cost of sales, operating income, other income ( net, provision for income taxes, and net income. Note: Input all the values as positive numbers. Enter your answers in millions. Round your percentage answers to 1 decimal place. Net Sales Fiscal 2018 % Fiscal 2017 Fiscal 2016 % Cost of sales % % % Operating income % % %6 Other income (expense) % % % Provision for income taxes % % % Net income % % % Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute common-size percents for fiscal years 2017 and 2018 for the following categories of assets: (a) total current assets; (b) property, plant and equipment, net; and (c) accounts receivable, net. Note: Enter your answers in millions. Round your percentage answers to 1 decimal place. Total current assets Property, plant and equipment, net Accounts receivable, net September 29, 2018 % % September 30, 2017 % % Book Complete this question by entering your answers in the tabs below. rences 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 2018? Apple's asset makeup become in 2018 21 Required 3> less liquid more liquid AP Current assets (In millions, except number of shares which are reflected in thousands and par value) Cash and cash equivalents Marketable securities Accounts receivable, net i Inventories Vendor non-trade receivables Other current assets Total current assets Non current assets: Marketable securities Property, plant and equipment, net Other non-current assets Total non-current assets Total assets i Current liabilities Accounts payable Other current liabilities Deferred revenue Commercial paper Term debt Total current liabilities Non-current liabilities Deferred revemie Other non-current liabilities Term deb Total non-current liabilities Total liabilities Commitments and contingencies Shareholders' equity ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY Common stock and additional paid-in capital, 5000001 par value: 12,600,000 shares authorized: 4,754,986 and 5,126,201 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income (loss) Total shareholders' equity Total liabilities and shareholders' equity September 29, 2018 September 30, 2017 25,913 $ 20.289 40,388 53.892 23,186 17,874 3.956 4,855 25.809 17,799 12.087 13,916 131.339 128.645 170,799 194,714 41,304 33.783 22,283 18.177 234.386 246.674 365,725 375,319 55,888 44,242 32.687 30.551 7343 7,548 11,964 11.977 8,784 6,496 116,866 100.814 2,797 2,836 93,735 97.207 45,180 40,415 141,712 140,458 258.578 241.272 40.201 35.867 70,400 98,330 (3,454) (150) 107,147 134,047 365,725 375,319 Years ended Net sales Cost of sales Gross margin Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) September 29, 2018 S 265,595 S September 30, 2017 229,234 September 24, 2016 215.639 163,756 141,048 131.376 101.839 88,186 84.263 Operating expenses 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 14,236 11,581 10.045 16,705 15.261 14,194 30,941 26.842 24.239 70,898 61,344 60.024 2,005 2,745 1348 72.903 64,089 61.372 13.372 15.738 15,685 59.531 48,351 45,687 Earnings per share Basic 12.01 S 9.27 $ 835 Diluted $ 11.91 $ 9.21 $ 8.31 Shares used in computing earnings per share: Basic Diluted 4.955.377 5,000,109 5,217,242 5,251.692 5,470,820 5.500,281 See accompanying Notes to Consolidated Financial Statements Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) Years ended Net income S September 29, 2018 59,531 S September 30, 2017 48351 September 24, 2016 $ 45,687 Other comprehensive income/(loss) Change in foreign currency translation, net of tax effects of S(1), 5(77) and $8, respectively (525) 224 75 Change in unrealized gains/losses on derivative instruments Change in fair value of derivatives, net of tax benefit (expense) of S(149), $(478) and S(7), respectively 523 1,315 7 Adjustment for net (gains) losses realized and included in net income. net of tax expense (benefit) of $(104), $475 and $131, respectively Total change in unrealized gains/losses on derivative instruments, net of tax 382 (1,477) 0413 905 (162) (734) Change in unrealized gains/losses on marketsble securities Change in fair value of marketable securities, net of tax benefit (expense) of $1,156, $425 and 5(863), respectively Adjustment for net (gains) losses realized and included in net income net of tax expense (henefit) of 521, $35 and 5(31), respectively Total change in unrealized gainsflosses on marketable securities, net of tax 0,407) (762) 1.52 154) 56 (3.406) (846) 1638 Total other comprehensive income (lou) CL026) (764) 979 Total comprehensive income 56,505 S 47.567 46,566 See accompanying Notes to Consolidated Financial Statements APPLE Apple Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In millions, except number of shares which are reflected in thousands) Common Stock and Additional Paid-In Capital Accumulated Other Comprehensive Retained Total Shareholders Shares Amount Earnings Income (Low) Equity Balances as of September 26, 2015 1 Net income Other comprehensive income (loss) Dividends and dividend equivalents declared at $2.18 per share or RSU 5.578,753 $ 27,416 $ 92,284 $ (345) 119,355 45,687 45.687 979 979 (12.188) Repurchase of common stock (279,609) (29,000) (12.1) (29,000) Share-based compensation 4,262 4,262 Common stock issued, net of shares withheld for employee taxes 37,022 (806) (419) (1.225) Tax benefit from equity awards, including transfer pricing adjustments 379 379 Balances as of September 24, 2016 5,336,166 31.251 96.364 634 128.249 Net income 48.351 48.351 Other comprehensive income (loss) (784) (784) Dividends and dividend equivalents declared at $2.40 per share or RSU (12,803) (12.803) Repurchase of common stock (246,496) (33,001) (33,001) Share-based compensation 4,909 4,909 Common stock issued, net of shares withheld for employee taxes 36.531 (913) (581) (1494) Tax benefit from equity awards, including transfer pricing adjustments 620 620 Balances as of September 30, 2017 5,126,201 35,367 98.330 (150) 134,047 Cumulative effect of change in accounting principle 278 (278) Net income Other comprehensive income (loss) declared at $2.72 per share or RSU Repurchase of common stock Share-based compensation Common stock issued, net of shares withheld for employee taxes Balances as of September 29, 2018 59.331 59.531 0.026) 03.026) Dividends and dividend equivalents (13,735) (13,735) (405,549) (73,056) (71,056) 5,443 5,443 34,334 (1,109) (945) (2057) 4,754,956 40.201 70,400 $ 0454) S 107.147 See accompanying Notes to Consolidated Financial Statements Years ended Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS 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 : (In millions) September 29, 2018 20,289 $ September 30, 2017 20,484 September 24, 2016 $ 21,120 59,531 48,351 45,687 10,903 10,157 10.505 Share-based compensation expense 5,340 4,840 4.210 Deferred income tax expense (benefit) (32.590) 5,966 4,938 Other (444) (166) 486 Changes in operating assets and liabilities Accounts receivable, net (5.322) (2,093) 527 Inventories 828 (2,723) 217 Vendor non-trade receivables (8.010) (4,254) (51) Other current and non-current assets (423) (5.318) 1,055 Accounts payable 9,175 8,966 2,117 Deferred revenue (44) (626) (1.554) Other current and non-current liabilities 38,490 1.125 (1,906) Cash generated by operating activities Investing activities: Purchases of marketable securities 77,434 64,225 66.231 (71,356) (159,486) (142,428) Proceeds from maturities of marketable securities 55,881 31,775 21.258 Proceeds from sales of marketable securities 47,838 94.564 Payments for acquisition of property, plant and equipment (13,313) (12,451) 90,536 (12.734) Payments made in connection with business acquisitions, net (721) (329) (297) Pechases of non-marketable securities (1,871) (521) (1,388) Proceeds from non-marketable securities 353 126 Other (745) (124) Cash generated by (used in) investing activities 16,066 (46,446) (924) (45.977) Financing activities: Proceeds from issuance of common stock 669 555 495 Payments for taxes related to net share settlement of equity awards (2,527) (1.874) (1.570) Payments for dividends and dividend equivalents (13,712) (12,769) (12.150) Repurchases of common stock (72.738) (32,900) (29,722) Proceeds from issuance of term debt, net 6,969 28,662 24,954 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 Supplemental cash flow disclosure: (6.500) (3.500) (2.500) (37) (87.876) 3,852 (397) (17,974) (20,890) 5,624 (195) (636) 25,913 $ 20,289 S 20,484 Cash paid for income taxes, net 10,417 11,591 S 10,444 Cash paid for interest 3,022 $ 2.092 5 1,316 See accompanying Notes to Consolidated Financial Statements