Sep. 24, 2016 Sep. 26, 2015 $ 20,484 46,671 $ 21,120 20,481 15,754 16.849 2,132 13,545 8.283 106,869 170,430 27,010 5,414 3,206 8,757 321,686 2,349 13,494 15.085 89,378 164,065 22.471 5,116 3,893 5.422 290,345 CONSOLIDATED BALANCE SHEETS- USD ($) $ in Millions Current assets: Cash and cash equivalents Short-term marketable securities Accounts receivable, less allowances of S53 and $63, respectively Inventories Vendor non-trade receivables Other current assets Total current assets Long-term marketable securities Property, plant and equipment, net Goodwill Acquired intangible assets, net Other non-current assets Total assets 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 Shareholders' equity: Common stock and additional paid-in capital, S0.00001 par value: 12,600,000 shares authorized: 5,336,166 and 5,578,753 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income/loss) Total shareholders' equity Total liabilities and shareholders' equity 37,294 22,027 8,080 8,105 3,500 79,006 2.930 75,427 36,074 193,437 35,490 25,181 8.940 8,499 2.500 80.610 3,624 53,329 33,427 170.990 31.251 27,416 96,364 92.284 634 128,249 $ 321,686 (345) 119,355 $ 290,345 12 Months Ended Sep. 24, 2016 Sep. 26, 2015 Sep. 27, 2014 $ 215.639 131,376 84.263 $ 233,715 140,089 93,626 $ 182,795 112.258 70.537 CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, S in Millions Income Statement [Abstract] Net sales Cost of sales Gross margin 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 Earnings per share: Basic (in dollars per share) Diluted (in dollars per share) Shares used in computing earnings per share: Basic (in shares) Diluted (in shares) Cash dividends declared per share (in dollars per share) 10.045 14,194 24,239 60.024 1,348 61,372 15,685 $ 45,687 8,067 14.329 22,396 71.230 1,285 72,515 19,121 $ 53,394 6,041 11,993 18,034 52,503 980 53,483 13,973 $ 39,510 S 8.35 S 8.31 S 9.28 S 9.22 S 6.49 S 6.45 5,470.820 5,500,281 5,753,421 5,793,069 6,085,572 6,122,663 S 2.18 S 1.98 S 1.82 12 Months Ended Sep. 24, 2016 Sep. 26, 2015 Sep. 27, 2014 $ 21,120 $ 13,844 $ 14,259 45,687 53,394 39,510 10,505 4,210 4,938 11,257 3,586 1,382 7,946 2.863 2,347 1,095 217 (51) 1,090 1,791 (1,554) (2,104) 65,824 611 (238) (3,735) (179) 5,400 1,042 8.746 81.266 (4,232) (76) (2.220) 167 5,938 1,460 6,010 59,713 (142,428) (166,402) (217,128) 21,258 14,538 18,810 90,536 107,447 189,301 CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions Statement of Cash Flows [Abstract] 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 Share-based compensation expense Deferred income tax expense 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 made in connection with business acquisitions, net Payments for acquisition of property, plant and equipment Payments for acquisition of intangible assets Payments for strategic investments Other Cash used in investing activities Financing activities: Proceeds from issuance of common stock Excess tax benefits from equity awards 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 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: Cash paid for income taxes, net Cash paid for interest (297) (343) (3,765) (12,734) (11,247) (9,571) (241) (814) (1,388) (110) (45,977) 0 (26) (56,274) (242) (10) 26 (22,579) 495 407 543 749 730 739 (1,570) (1,499) (1,158) (12,150) (29,722 24.954 (2,500) (397) (20,483) (11,561) (35,253) 27,114 0 2,191 (17,716) (11,126) (45,000) 11,960 0 6,306 (37,549) (415) (636) 7,276 20,484 21,120 13,844 10,444 $ 1,316 13,252 S 514 10,026 S 339 6. How many days' sales does Apple have in receivables and inventory for 2015 and 2016? (When added together, this is its operating cycle.) (Note: Round all answers to two decimal places.) 2016 2015 Days' Sales in Receivables 27.59 days 26.67 X days Days' Sales in Inventory 6.23 X days 5.92 X days Operating Cycle 58.64 x days 33.82 X days 7. Conceptual Connection: Assuming 10% interest, how much interest expense did Apple incur due to its deteriorating accounts receivable and inventory turnovers? Enter amount rounded to the nearest whole dollar. For example, 7,684,268.24 would be entered as 7,684,268. (Remember, the numbers are in millions)? 8. What were Apple's gross profit, operating margin, and net profit ratios in 2016? (Note: Round answers to two decimal places.) Gross Profit Ratio 39.1 X % Operating Margin Ratio 39.1 X % Net Profit Margin Ratio 39.1 X % Assuming industry averages for 2016 were 27.57%, 7.87%, and 4.76%, respectively, describe Apple's profitability