September 29, 2018 Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 28, 2019 ASSETS Current assets Cash and cash equivalents 48,844 Marketable securities 51,713 Accounts receivable, net 22.926 Inventories 4,106 Vendor non-trade receivables 22,878 Other current assets 12,352 Total current assets 162,819 Non-current assets Marketable securities 105,341 Property, plant and equipment, net 37,378 Other non-current assets 32,978 Total non-current assets 175,697 Total assets 338,516 25.913 40,388 23.186 3,956 25,809 12.087 131,339 170,799 41,304 22.283 234,386 365,725 46,236 37.720 5,522 5,980 10,260 105,718 55.888 33,327 5.966 11.964 8,784 115,929 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable Other current liabilities Deferred revenue Commercial paper Term debt Total current liabilities Non-current liabilities Term debt Other non-current liabilities Total non-current liabilities Total liabilities Commitments and contingencies Shareholders' equity Common stock and additional paid-in capital, 50.00001 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 See accompanying Notes to Consolidated Financial Statements. 91,807 50,503 142.310 248,028 93.735 48,914 142.649 258,578 45.174 45,898 (584) 90.488 338,516 40,201 70,400 (3.454) 107.147 365,725 September 30, 2017 $ 196,534 32,700 229.234 126,337 14.711 141,048 88,186 Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) Years ended September 28, 2019 September 29, 2018 Net sales: Products 213.883 225,847 Services 46.291 39,748 Total net sales 260,174 265,595 Cost of sales: Products 144.996 148,164 Services 16,786 15,592 Total cost of sales 161.782 163,756 Gross margin 98.392 101.839 Operating expenses: Research and development 16,217 14,236 Selling, general and administrative 18.245 16,705 Total operating expenses 34,462 30,941 Operating income 63,930 70,898 Other income (expense), net 1.807 2,005 Income before provision for income taxe 65.737 72.903 Provision for income taxes 10,481 13,372 Net income 55,256 59,531 Earnings per share: Basic 11.97 12.01 Diluted 11.89 11.91 Shares used in computing earnings per share: Basic 4.617,834 4,955,377 Diluted 4,648,913 5,000,109 11.581 15.261 26,842 61.344 2,745 64,089 15,738 48,351 9.27 9.21 5.217.242 5,251,692 224 Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) Years ended September 28, 2019 September 29, 2018 September 30, 2017 Net income $ 55,256 S 59,531 $ 48,351 Other comprehensive income (loss): Change in foreign currency translation, net of tax (408) (525) Change in unrealized gains/losses on derivative instruments, net of tax: Change in fair value of derivatives (661) 523 1.315 Adjustment for net (gains) losses realized and included in net income 23 382 (1,477) Total change in unrealized gains/losses on derivative instruments (638) (162) Change in unrealized gains/losses on marketable securities, net of tax: Change in fair value of marketable securities 3,802 (3,407) (782) Adjustment for net (gains) losses realized and included in net income 25 (64) Total change in unrealized gains/losses on marketable securities 3,827 (3.406) (846) Total other comprehensive income (loss) 2,781 (3.026) (784) Total comprehensive income 58,037 56,505 47,567 See accompanying Notes to Consolidated Financial Statements. 905 September 30, 2017 $ 128,249 31,251 555 669 (1,468) 4,909 620 35.867 Apple Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In millions) Years ended September 28, 2019 September 29, 2018 Total shareholders' equity, beginning balances $ 107,147 $ 134,047 Common stock and additional paid-in capital Beginning balances 40.201 35,867 Common stock issued 781 Common stock withheld related to net share settlement of equity awards (2,002) (1.778) Share-based compensation 6,194 5,443 Tax benefit from equity awards, including transfer pricing adjustments Ending balances 45.174 40,201 Retained earnings Beginning balances 70,400 98,330 Net income 55,256 59,531 Dividends and dividend equivalents declared (14,129) (13.735) Common stock withheld related to net share settlement of equity awards (1.029) (948) Common stock repurchased (67.101) (73,056) Cumulative effects of changes in accounting principles 2,501 Ending balances 45,898 70,400 Accumulated other comprehensive income (loss) Beginning balances (3,454) (150) Other comprehensive income (loss) 2.781 (3,026) Cumulative effects of changes in accounting principles (278) Ending balances (584) (3.454) Total shareholders' equity, ending balances 90,488 107,147 See accompanying Notes to Consolidated Financial Statements. 96,364 48,351 (12.803) (581) (33,001) 278 98,330 634 (784) 89 (150) 134.047 September 30, 2017 21.484 48.351 12.547 10.157 4.840 5.966 (1656) 2.093 (2.723) (4.254) (5.31) 1.966 (593) 1.092 64.225 Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS In millions) Years ended September 28, 2019 September 29, 2018 Cash, cash equivalents and restricted cash, beginning balances 25.913 20.289 Operating activities Net income 55.256 59,531 Adjustments to reconcile net inee to cash generated hy operating activities: Depreciation and amortization 10,903 Shure based compensation expense 6.068 5.340 Deferred income tax expense benefit (340) (32.590) Other (652) Changes in operating assets and liabilities: Accounts receivable.net 345 (5.822) Inventories (289) 828 Vendor non trade receivables 2.931 (8010 Other current and current assets (425) Accounts payable (1.923) 9.175 Deferred mene (3) Other current and on current liabilities (4.700 38,449 Cash generated by operating activities 69.191 77.414 Investing activities Purchases of marketable securities (39.630) (71.356) Priceeds from maturities of marketable securities 10.102 35. Process from sales of marketable securities 56.988 4738 Payments for acquisition of property, plant and equipment (10,495) (13.313) Payments made in connection with business acquisitions, met (624) (721) Purchases of non-marketable securities (1.000) (171) Pmceeds from non-marketable securities 1.634 353 Other (1.07) (745) Cash generated by (used in investing activities 45.896 16.066 Financing activities Proceeds from imance of mon stock 781 669 Payments for taxes related to not share settlement of equity awants (2017) 2.327) Payments for dividends and dividenilexpurvalents (14.119) (13,712) Repurchmes of common wock (66.1972 (72.738) Prices from ince of turm dei, nel 6.969 Repayments of term dels (N.105) (6.500 Proceeds from (Rupayments commercial paper, net (5.977) (7) Other (105) Cash used in financing activities 1901,976) (87.876) Increase (decrease in cash, cashequivalents and restricted cash 24111 5.24 Cah, cash equivalents and testricted canh, ending balances 50.224 25.913 Supplemental chrow disclosure Cash paid for income taxes, het 15.263 $ 10,417 3.423 5 3.022 See accompanying Notes to Comilidited Financial Statements (159,486) 31.775 91561 (12.451 (329) (521) 126 (124 (46.446) 555 (1.274 (12.769) (32.600) 21.062 _500) 3.RS (17.974) (195 20.20 5 11.591 2.072 Use Apple's financial statements in Appendix A to answer the following. Required: 1. Using fiscal 2017 as the base year, compute trend percents for fiscal years 2017, 2018, and 2019 for total net sales, total cost of sales, operating income, other income (expense) net, provision for income taxes, and net income. 2. Compute common-size percents for fiscal years 2018 and 2019 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 2019? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using fiscal 2017 as the base year, compute trend percents for fiscal years 2017, 2018, and 2019 for total net sales, total 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 decimal place.) Fiscal 2018 Fiscal 2017 % % Fiscal 2019 % % % % % 1% Net Sales Cost of sales Operating income Other income (expense) Provision for income taxes Net income % % % % % % % % % % Use Apple's financial statements in Appendix A to answer the following. Required: 1. Using fiscal 2017 as the base year, compute trend percents for fiscal years 2017, 2018, and 2019 for total net sales, total cost of sales, operating income, other income (expense) net, provision for income taxes, and net income. 2. Compute common-size percents for fiscal years 2018 and 2019 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 2019? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute common-size percents for fiscal years 2018 and 2019 for the following categories of assets: (a) total current assets; (6) property, plant and equipment, net; and (c) accounts receivable, net. (Enter your answers in millions. Round your percentage answers to 1 decimal place.) Total current assets Property, plant and equipment, net Accounts net 2019 % % % 2018 % % Use Apple's financial statements in Appendix A to answer the following. Required: 1. Using fiscal 2017 as the base year, compute trend percents for fiscal years 2017, 2018, and 2019 for total net sales, total cost of sales, operating income, other income (expense) net, provision for income taxes, and net income. 2. Compute common-size percents for fiscal years 2018 and 2019 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 2019? 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 2019? Apple's asset makeup become in 2019 Use Apple's financial statements in Appendix A to answer the following. Required: 1. Using fiscal 2017 as the base year, compute trend percents for fiscal years 2017, 2018, and 2019 for total net sales, total cost of sales, operating income, other income (expense) net, provision for income taxes, and net income. 2. Compute common-size percents for fiscal years 2018 and 2019 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 2019? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute common-size percents for fiscal years 2018 and 2019 for the following categories of assets: (a) total current assets; (6) property, plant and equipment, net; and (c) accounts receivable, net. (Enter your answers in millions. Round your percentage answers to 1 decimal place.) Total current assets Property, plant and equipment, net Accounts net 2019 % % % 2018 % % Use Apple's financial statements in Appendix A to answer the following. Required: 1. Using fiscal 2017 as the base year, compute trend percents for fiscal years 2017, 2018, and 2019 for total net sales, total cost of sales, operating income, other income (expense) net, provision for income taxes, and net income. 2. Compute common-size percents for fiscal years 2018 and 2019 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 2019? 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 2019? Apple's asset makeup become in 2019