The financial statements of Apple Inc. are presented in Appendix A.

Answer the following questions.

- What were the total cost and book value of property, plant, and equipment at September 27, 2014? (Enter the amounts in millions.

Total cost:

Book value:

-What was the amount of depreciation and amortization expense for each of the 3 years 20122014? (Hint: Use the statement of cash flows.) (Enter the amounts in millions.)

2012 :

2013:

2014:

- Using the statement of cash flows, what are the amounts of property, plant, and equipment purchased in 2014 and 2013? (Enter the amounts in millions.)

2014 2013

Property, plant, and equipment purchased ------------- ------------

CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) Years ended September 27, September 28, September 29, 2014 2013 2012 182,795 170,910 156,508 Net sales 87,846 112,258 106,606 Cost of sales 64,304 68,662 Gross margin 70,537 Operating expenses: Research and development 6,041 4,475 3,381 Selling, general and administrative 10,830 Total operating expenses 18,034 15,305 13,421 52,503 Operating income 48,999 55,241 Other income/(expense), net 980 1,156 522 55,763 53,483 Income before provision for income taxes 50,155 Provision for income taxes 13,973 13, 118 14,030 39,510 37,037 S 41,733 Net income Eamings per share: 6.49 5.72 6.38 Basic 6.45 5.68 6.31 Shares used in computing earnings per share: Basic 6,085,572 6,477,320 6,543,726 Diluted 6,122,663 6,521,634 6,617,483 Cash dividends declared per common share 1.82 1.64. 0.38 See accompanying Notes to Consolidated Financial Statements. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) Years ended September 27, September 28, September 29, 2014 2013 2012 182,795 170,910 156,508 Net sales 87,846 112,258 106,606 Cost of sales 64,304 68,662 Gross margin 70,537 Operating expenses: Research and development 6,041 4,475 3,381 Selling, general and administrative 10,830 Total operating expenses 18,034 15,305 13,421 52,503 Operating income 48,999 55,241 Other income/(expense), net 980 1,156 522 55,763 53,483 Income before provision for income taxes 50,155 Provision for income taxes 13,973 13, 118 14,030 39,510 37,037 S 41,733 Net income Eamings per share: 6.49 5.72 6.38 Basic 6.45 5.68 6.31 Shares used in computing earnings per share: Basic 6,085,572 6,477,320 6,543,726 Diluted 6,122,663 6,521,634 6,617,483 Cash dividends declared per common share 1.82 1.64. 0.38 See accompanying Notes to Consolidated Financial Statements