The financial statements of Apple Inc. for 2014 are presented in Appendix A. Click here to view Appendix A. - SEE BELOW 1) Identify the liabilities classified by Apple as current.
2) What are long-term liabilities? Give two examples.
3) What is a bond?
4) SEE SCREENSHOT BELOW FOR QUESTIONS TO 4
HERE IS APPENDIX A.
Bramble Corp. issued 1,200 9%, 8-year, $1,000 bonds dated January 1, 2022, at face value. Interest is paid each January 1. (a) Prepare the journal entry to record the sale of these bonds on January 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2022 (b) Prepare the adjusting journal entry on December 31, 2022, to record interest expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31, 2022 (c) Prepare the journal entry on January 1, 2023, to record interest paid. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2023 Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) September 26, 2015 233,715 $ Years ended September 24, 2016 215,639 131,376 84,263 Net sales Cost of sales Gross margin $ September 30, 2017 229,234 141,048 88,186 140,089 93,626 8,067 Operating expenses: Research and development Selling, general and administrative Total operating expenses 11,581 15,261 26.842 10,045 14,194 24,239 14,329 22,396 60,024 1,348 Operating income Other income/(expense), net Income before provision for income taxes Provision for income taxes 61,344 2,745 64,089 15,738 48,351 61,372 15,685 45,687 71.230 1,285 72,515 19, 121 53,394 Net income S $ $ Earnings per share: Basic Diluted $ 9.27 $ $ 8.35 8.31 9.28 9.22 $ 9.21 $ $ Shares used in computing earnings per share: Basic Diluted 5,217,242 5,251,692 5,470,820 5,500,281 5,753,421 5,793,069 Cash dividends declared per share $ 2.40 $ $ 2.18 $ 1.98 See accompanying Notes to Consolidated Financial Statements. Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) September 30, 2017 48,351 Years ended September 24, 2016 45,687 September 26, 2015 53,394 Net income $ $ $ Other comprehensive income/(loss): Change in foreign currency translation, net of tax effects of $(77), $8 and $201, respectively 224 75 (411) 1,315 7 2,905 Change in unrealized gains/losses on derivative instruments: Change in fair value of derivatives, net of tax benefit (expense) of $(478), $(7) and $(441), respectively Adjustment for net (gains)/losses realized and included in net income, net of tax expense/(benefit) of $475, $131 and $630, respectively Total change in unrealized gains/losses on derivative instruments, net of tax (1,477) (162) (741) (734) (3,497) (592) (782) 1,582 (483) Change in unrealized gains/losses on marketable securities: Change in fair value of marketable securities, net of tax benefit/(expense) of $425, $(863) and $264, respectively Adjustment for net (gainsy/losses realized and included in net income, net of tax expense/(benefit) of $35, $(31) and $(32), respectively Total change in unrealized gains/losses on marketable securities, net of tax 56 59 (64) (846) 1,638 (424) 979 (1,427) Total other comprehensive income/(loss) Total comprehensive income (784) 47,567 $ $ 46,666 $ 51,967 See accompanying Notes to Consolidated Financial Statements. Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 30, 2017 September 24, 2016 ASSETS: Current assets: Cash and cash equivalents Short-term marketable securities Accounts receivable, less allowances of $58 and $53, respectively Inventories Vendor non-trade receivables Other current assets Total current assets 20.289 53,892 17.874 4,855 20,484 46,671 15,754 2,132 13,545 8.283 106,869 17.799 13.936 128,645 Long-term marketable securities Property, plant and equipment, net Goodwill Acquired intangible assets, net Other non-current assets Total assets 194,714 33.783 5,717 2,298 10,162 375,319 170.430 27,010 5,414 3,206 8,757 321,686 $ LIABILITIES AND SHAREHOLDERS' EQUITY: $ $ Current liabilities: Accounts payable Accrued expenses Deferred revenue Commercial paper Current portion of long-term debt Total current liabilities 49.049 25,744 7,548 11,977 6,496 100.814 37.294 22,027 8,080 8,105 3,500 79.006 Deferred revenue, non-current Long-term debt Other non-current liabilities Total liabilities 2,836 97.207 40,415 241,272 2.930 75,427 36,074 193,437 Commitments and contingencies Shareholders' equity: Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized: 5,126,201 and 5,336,166 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income/(loss) Total shareholders' equity Total liabilities and shareholders' equity 35.867 98,330 (150) 134,047 375,319 31,251 96,364 634 128,249 321,686 See accompanying Notes to Consolidated Financial Statements. Apple Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In millions, except number of shares which are reflected in thousands) Common Stock and Additional Paid-In Capital Amount Shares 5,866,161 Accumulated Other Comprehensive Income/(Loss) $ 1,082 Retained Earnings 87,152 53,394 $ 23,313 (1,427) Total Shareholders' Equity $ 111,547 53,394 (1,427) (11,627) (36,026) 3,586 (11,627) (36,026) (325,032) 3,586 37,624 (231) (609) (840) 748 27,416 748 119,355 5,578,753 92,284 (345) 45,687 979 I (12,188) (29,000) Balances as of September 27, 2014 Net income Other comprehensive income/(loss) Dividends and dividend equivalents declared Repurchase of common stock Share-based compensation Common stock issued, net of shares withheld for employee taxes Tax benefit from equity awards, including transfer pricing adjustments Balances as of September 26, 2015 Net income Other comprehensive income/loss) Dividends and dividend equivalents declared Repurchase of common stock Share-based compensation Common stock issued, net of shares withheld for employee taxes Tax benefit from equity awards, including transfer pricing adjustments Balances as of September 24, 2016 Net income Other comprehensive income/loss) Dividends and dividend equivalents declared Repurchase of common stock Share-based compensation Common stock issued, net of shares withheld for employee taxes Tax benefit from equity awards, including transfer pricing adjustments Balances as of September 30, 2017 45,687 979 (12,188) (29,000) 4,262 (279,609) 4,262 37,022 (806) (419) (1,225) 379 379 5,336,166 31,251 634 96,364 48,351 (784) 128,249 48,351 (784) (12,803) (33,001) 4,909 (12,803) (33,001) (246,496) 4,909 36,531 (913) (581) (1,494) 620 620 5,126,201 $ 35,867 $ 98,330 $ (150) $ 134,047 See accompanying Notes to Consolidated Financial Statements. Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) Years ended September 24, 2016 21,120 $ September 26, 2015 13,844 45,687 53,394 10,505 11.257 4,210 3,586 5,966 4,938 1,382 486 385 527 417 217 (238) (3.735) (283) ) 5.001 (51) 1,055 1,837 (1,554) (2,033) 65,824 1,042 9,058 81.266 (166,402) (142,428) 21,258 14,538 September 30, 2017 Cash and cash equivalents, beginning of the year $ 20,484 $ Operating activities: Net income 48,351 Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization 10,157 Share-based compensation expense 4,840 Deferred income tax expense Other (166) Changes in operating assets and liabilities: Accounts receivable, net (2,093) Inventories (2,723) Vendor non-trade receivables (4,254) Other current and non-current assets (5,318) Accounts payable 9.618 Deferred revenue (626) Other current and non-current liabilities (154) Cash generated by operating activities 63,598 Investing activities Purchases of marketable securities (159,486) Proceeds from maturities of marketable securities 31,775 Proceeds from sales of marketable securities Payments made in connection with business acquisitions, net (329) Payments for acquisition of property, plant and equipment Payments for acquisition of intangible assets (344) ( Payments for strategic investments, net (395) Other 220 Cash used in investing activities (46,446) Financing activities: Proceeds from issuance of common stock 555 Excess tax benefits from equity awards 627 Payments for taxes related to net share settlement of equity awards (1,874) Payments for dividends and dividend equivalents (12,769) Repurchases of common stock (32,900) Proceeds from issuance of term debt, net 28,662 Repayments of term debt (3,500) Change in commercial paper, net 3,852 Cash used in financing activities (17,347) Increase/(Decrease) in cash and cash equivalents (195) Cash and cash equivalents, end of the year $ 20,289 $ Supplemental cash flow disclosure: Cash paid for income taxes, net $ 11,591 $ Cash paid for interest $ 2,092 $ See accompanying Notes to Consolidated Financial Statements. 94,564 107,447 (12.451) 90,536 (297) (12,734) (814) (1,388) (110) (45.977) (343) ) (11.247) (241) (26) (56,274) 495 543 749 407 (1,570) (12,150) (29,722) 24,954 (1.499) (11.561) (35,253) 27.114 (2,500) (397) (20,483) 2,191 (17.716) 7.276 21.120 (636) 20,484 10,444 $ 13.252 1,316 $ 514
