Review the select balance sheet and income statement for Apple, Inc. (found in the 10-K).For the account assigned, identify assertions which is relevant for the assigned accounts.
1. Account Receivable
2.Allowance for Accounts receivable
3. Debt
4. Operating expenses
Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) Years ended September 29, September 28, 2019 September 30, 2017 2018 $ $ Net sales: Products Services Total net sales 213,883 46,291 260,174 225,847 39,748 265,595 196,534 32,700 229,234 Cost of sales: Products Services Total cost of sales Gross margin 144,996 16,786 161,782 98,392 148, 164 15,592 163,756 101,839 126,337 14,711 141,048 88,186 Operating expenses: Research and development Selling, general and administrative Total operating expenses 16,217 18,245 34,462 14,236 16,705 30,941 11,581 15,261 26,842 Operating income Other income/(expense), net Income before provision for income taxes Provision for income taxes Net income 63,930 1,807 65,737 10,481 55,256 70,898 2,005 72,903 13,372 59,531 61,344 2,745 64,089 15,738 48,351 $ $ $ Earnings per share: Basic Diluted $ $ 11.97 11.89 $ $ 12.01 11.91 $ $ 9.27 9.21 Shares used in computing eamings per share: Basic Diluted 4,617,834 4,648,913 4,955,377 5,000,109 5,217,242 5,251,692 See accompanying Notes to Consolidated Financial Statements. Apple Inc. 2019 Form 10-K | 29 Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) September 28, 2019 55,256 Years ended September 29, 2018 59,531 September 30, 2017 48,351 $ Net income Other comprehensive income/(loss): Change in foreign currency translation, net of tax (408) (525) 224 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 (661) 23 (638) 523 382 905 1,315 (1,477) (162) (782) 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 3,802 25 3,827 (3,407) 1 (3,406) (64) (846) Total other comprehensive income/(loss) Total comprehensive income 2,781 58,037 (3,026) 56,505 (784) 47,567 $ $ $ See accompanying Notes to Consolidated Financial Statements. Apple Inc. 2019 Form 10-K 30 CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 28, September 29, 2018 ASSETS: $ Current assets: Cash and cash equivalents Marketable securities Accounts receivable, net Inventories Vendor non-trade receivables Other current assets Total current assets 48,844 51,713 22,926 4,106 22.878 12,352 162,819 25,913 40,388 23,186 3,956 25,809 12,087 131,339 Non-current assets: Marketable securities Property, plant and equipment, net Other non-current assets Total non-current assets Total assets 105,341 37,378 32,978 175,697 338,516 170,799 41,304 22,283 234,386 365,725 $ 5 LIABILITIES AND SHAREHOLDERS' EQUITY: $ Current liabilities: Accounts payable Other current liabilities Deferred revenue Commercial paper Term debt Total current liabilities 46,236 37,720 5,522 5,980 10,260 105,718 55,888 33,327 5,966 11,964 8,784 115,929 Non-current liabilities: Term debt Other non-current liabilities Total non-current liabilities Total liabilities 91,807 50,503 142,310 248,028 93,735 48,914 142,649 258,578 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 45,174 45,898 (584) 90,488 338,516 40,201 70,400 (3,454) 107,147 365,725 $ $ See accompanying Notes to Consolidated Financial Statements. Apple Inc. 2019 Form 10-K 31 Apple Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In millions, except per share amounts) September 28, 2019 107,147 Years ended September 29, 2018 134,047 September 30, 2017 128,249 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 40,201 781 (2,002) 6,194 35,867 669 (1,778) 5,443 31.251 555 (1,468) 4,909 620 35,867 45,174 40,201 Retained earnings: 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 70,400 55,256 (14,129) (1,029) (67,101) 2,501 45,898 98,330 59,531 (13,735) (948) (73,056) 278 70,400 96,364 48,351 (12,803) (581) (33,001) 98,330 Accumulated other comprehensive income/(loss): Beginning balances Other comprehensive income/loss) Cumulative effects of changes in accounting principles Ending balances (3,454) 2,781 634 (784) (150) (3,026) (278) (3,454) (584) (150) Total shareholders' equity, ending balances $ 90,488 $ 107,147 S 134,047 Dividends and dividend equivalents declared per share or RSU $ 3.00 $ 2.72 $ 2.40 See accompanying Notes to Consolidated Financial Statements. Apple Inc. 2019 Form 10-K 32 Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) Years ended September 29, 2018 September 30, 2017 September 28, 2019 25,913 Cash, cash equivalents and restricted cash, beginning balances 20,289 $ 20,484 55,256 59,531 48,351 Operating activities: Net income Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization Share-based compensation expense 12,547 6,068 (340) (652) 10,903 5,340 (32,590) 10,157 4,840 5,966 (166) 245 (289) 2,931 873 (1,923) (625) (4,700) 69,391 (5,322) 828 (8,010) (423) 9,175 (2,093) (2,723) (4,254) (5,318) 8,966 (593) 1,092 64,225 (3) 38,449 77,434 Deferred income tax expensel(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 Increasel Decrease) in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash, ending balances (39,630) 40,102 56,988 (10,495) (624) (1,001) 1,634 (1,078) 45,896 (71,356) 55,881 47,838 (13,313) (721) (1,871) 353 (745) 16,066 (159,486) 31,775 94,564 (12,451) (329) (521) 126 (124) (46,446) 781 (2,817) (14,119) (66,897) 6,963 (8,805) (5,977) (105) (90,976) 24,311 50,224 669 (2,527) (13,712) (72,738) 6,969 (6,500) (37) 555 (1,874) (12,769) (32,900) 28,662 (3,500) 3,852 (87.876) 5,624 25,913 (17,974) (195) 20,289 $ Supplemental cash flow disclosure: Cash paid for income taxes, net Cash paid for interest 15,263 $ 3,423 See accompanying Notes to Consolidated Financial Statements. $ $ 10,417 3,022 $ $ 11,591 2,092
