Statement of cash flows 1. Now locate the statement of cash flows. List the page number from the most recent Form 10-K where you found it. 2. Which method (direct or indirect) does the company use to report cash flows from operations? How do you know? 3. Did the company buy or sell more plant assets in the most recent year as compared to the prior two years? 4. Did the company buy back any of its own stock? Did it pay any dividends? 5. What type of activity (operating, financing, or investing) in total generated the most cash flows for the company in the most recent year? What conclusions can you draw? Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) September 28 2019 Years ended September 29, 2018 September 30, 2017 25,913 20,289 20,484 55 256 58,631 48,361 12.547 10,903 5,340 (32,590) 10,157 4.840 6,068 (340) (652) 5.986 (166) 245 (6,322) (2,093) (2.723) 88 (289) 2.931 M,254 aza Cash, cash equivalents and restricted cash, beginning balances Operating activilies: Net income Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization Share-based compensation expense Delerred income tax expenselbenelit) Other Changes in operating assets and liabilities: Accounts receivable, net Inventories Vendor non-trada neceivables Other current and non-current assets Accounts payable Deferred revenue Other current and non-current liabilities Cash generated by operating activilies 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 Procards from non-marketable securities Other Cash generated by used in) investing activities 18,010) 1423) 9,175 15,316) 8,056 1993: (1,923) 1825) 4.700) 69.391 39,449 77,434 1,042 84,225 (39,690) 40,102 5.989 (10,495) (824) (1.CIDI) 1.031 (1.07e: 45,895 (71,356) 55,881 47.838 (13,313) 1721) (1,871) 353 (745) 16,066 (159,485) 31,775 94,564 (12,451 (329) (521 126 (16,4461 781 669 555 (2,817) (2,527) (1,874) (14,119) (13,712) (12,769) (72,738) (32,900) 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 (66,897) 6,963 6,969 28,662 (8,805) (6,500) (3,500) 3,852 (5,977) (105) (90,976) (87,876) (17,974) 24,311 5,624 Increase/(Decrease) in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash, ending balances (195) 20,289 50,224 $ 25,913 Supplemental cash flow disclosure: Cash paid for income taxes, net Cash paid for interest 10,417 11,591 A 15,263 3,423 $ 3,022 2,092 - Note 4 - Consolidated Financial Statement Details The following tables show the Company's consolidated financial statement details as of September 28, 2019 and September 29, 2018 (in millions): Property, Plant and Equipment, Net 2019 2018 17,085 16,216 69,797 65,982 9,075 8,205 Land and buildings Machinery, equipment and internal-use software Leasehold improvements Gross property, plant and equipment Accumulated depreciation and amortization Total property, plant and equipment, net 95,957 90,403 (58,579) (49,099) 37,378 41,304 Apple Inc. I 2019 Form 10-K | 43 Apple Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In milions, except per share amounts) Years ended September 29 2018 131,017 September 28, 2019 107.147 September 30. 2017 Total shareholders' equity, beginning balances S $ S 128.249 40,201 35,867 31.251 555 781 669 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, inclucing transfer pricing adjustments Ending balances (1.778) (2.002) 6,194 5,443 (1.168) 4.909 620 36.867 45,174 40.201 98.330 59.531 (13,735) Retained earnings: Beginning balances Net income Dividends and dividend equivalents declared Common stock withheld related to net share settlement of equily 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 96.384 48,351 (12.803) (581) 133,001) 1949 (73,056) 70,400 98,330 634 Accurnulated other comprehensive income' loss): Beginning balances Other comprehensive income loss) Cumulative effects of changes in accounting principles Ending balances (3,454) 2,781 1784) (150) (3,025) (279) (3,454) 89 (584) (150) Total shareholders' equity, ending balances 90,488 $ 107,147 134.047 Dividiends and dividend excuivalents declared per share or RSU 3.00 $ 2.72 2.40