The notes that accompany a companys financial statements provide informative details that would clutter the amounts and descriptions presented in the statements. Refer to the financial statements of Apple Inc.in Appendix A. Instructions for accessing and using the companys complete annual report, including the notes to the financial statements, are also provided in Appendix A.

Answer the following questions. (Give the amounts in thousands of dollars, as shown in Apples annual report.)

What did Apple report for the amount of inventories in its Consolidated Balance Sheet at September 27, 2014? At September 28, 2013? (Give the amounts in thousands of dollars.)

		2014		2013
Inventories		$enter inventories for 2014 in thousands of dollars		$enter inventories for 2013 in thousands of dollars

Compute the dollar amount of change and the percentage change in inventories between 2013 and 2014. (Round percentages to 1 decimal place, e.g. 15.4% and other answer to thousands.)

		Change in inventories
Dollar amount		$enter change in inventories in dollars rounded to thousands
Percentage		enter change in inventories in percentages rounded to 1 decimal place	%

Compute inventory as a percentage of current assets for 2014. (Round answer to 1 decimal place, e.g. 15.4%.)

Inventory as a percentage of current assets

enter inventory as a percentage of current assets rounded to 1 decimal place

%

What are the cost of sales reported by Apple for 2014, 2013, and 2012?

		2014		2013		2012
Product cost of goods sold		$enter a product cost of goods sold for 2014		$enter a product cost of goods sold for 2013		$enter a product cost of goods sold for 2012

Compute the ratio of cost of sales to net sales in 2014. (Round percentage to 1 decimal place, e.g. 15.2%.)

Ratio of cost of goods sold to net

enter Ratio of cost of goods sold to net in percentages

%

Please Fill ALL the charts! Thank you!

CONSOLIDATED STATEMENTS OF OPERATIONS In millions, except number of shares which are reflected in thousands and per share amounts) Years ended September 27, 2014 September 28, 2013 September 29, 2012 Net sales $ 182,795 $ 170,910 106,606 64,304 156,508 Cost of sales 112,258 70,537 87,846 68,662 Gross margin Operating expenses: 6,041 11,993 18,034 52,503 980 53,483 13,973 4,475 10,830 15,305 48,999 1,156 50,155 13,118 Research and development Selling, general and administrative 3,381 10,040 13,421 55,241 522 55,763 14,030 $ 39,510 37,037 41,733 Total operating expenses Operating income Other income/(expense), net Income before provision for income taxes Provision for income taxes Net income Eamings per share: 6.49 5.726.38 6.45 5.68 6.31 Basic Diluted Shares used in computing eamings 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 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) Years ended September 27, 2014 September 28, 2013 September 29 2012 Net income $ 39,510 37,03741,733 Other comprehensive income/(loss): Change in foreign currency translation, net of tax effects of $50, $35 and $13, respectively (137) (112) (15) Change in unrecognized gains/losses on derivative instruments: Change in fair value of derivatives, net of tax benefit/(expense) of $(297), (131) (399) (530) $(351) and $73, respectively 1,390 522 Adjustment for net losses/(gains) realized and included in net income net of tax expense/(benefit) of $(36), $255 and $220, respectively 149 (458) Total change in unrecognized gains/losses on derivative instruments, net of tax 1,539 64 Change in unrealized gains/losses on marketable securities: Change in fair value of marketable securities, net of tax benefit/ (expense) of $(153), $458 and $(421), respectively 285 (791) 715 Adjustment for net losses/(gains) realized and included in net income, net of tax expense/(benefit) of $71, $82 and $68, respectively (134) (131) (114) Total change in unrealized gains/losses on marketable securities 151 1,553 $ 41,063 601 56 36,06741,789 (922) (970) net of tax Total other comprehensive income/(loss) Total comprehensive income See accompanying Notes to Consolidated Financial Statements. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value September 27, 2014 September 28, 2013 ASSETS: Current assets: S 13,84414,259 26,287 13,102 1,764 3,453 7,539 6,882 73,286 106,215 16,597 1,577 4,179 5,146 S 231,839 207,000 Cash and cash equivalents Short-term marketable securities Accounts receivable, less allowances of $86 and $99, respectively Inventories Deferred tax assets Vendor non-trade receivables Other current assets 11,233 17,460 2,111 4,318 9,759 9,806 68,531 130,162 20,624 4,616 4,142 3,764 Total current assets Long-term marketable securities Property, plant and equipment, net Goodwill Acquired intangible assets, net Other assets Total assets LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities: Accounts payable Accrued expenses Deferred revenue Commercial paper $ 30,196 $22,367 13,856 7,435 0 43,658 2,625 18,453 8,491 6,308 63,448 3,031 Total current liabilities Deferred revenue-non-current Long-term debt Other non-current liabilities 28,987 24,826 120,292 16,960 20,208 83,451 Total liabilities Commitments and contingencies Shareholders' equity: Common stock and additional paid-in capital, $0.00001 par value; 12,600,000 shares authorized; 5,866,161 and 6,294,494 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive 23,313 87,152 1,082 111,547 S 231,839 19,764 104,256 (471) 123,549 207,000 Total shareholders'equity Total liabilities and shareholders' equity See accompanying Notes to Consolidated Financial Statements CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In millions, except number of shares which are reflected in thousands) Accumulated Other Common Stock and Total Shareholders Equity Additional Paid-In Capital Retained Comprehensive Shares Amount Earnings Income/(Loss) 6,504,937 13,331 S 62,841 41,733 Balances as of September 24, 2011 $ 443 $ 76,615 41,733 Net income Other comprehensive income/loss) Dividends and dividend equivalents declared Share-based compensation Common stock issued, net of shares (2,523) 0 (2,523) 1,740 1,740 0 withheld for employee taxes 69,521 (762) (562) Tax benefit from equity awards, including transfer pricing adjustments Balances as of September 29, 2012 1,151 1,151 18.210 37,037 (970) (10,676) (22,950) 2,253 6,574,458 16,422 101,289 499 37,037 Net income Other comprehensive income/(loss) Dividends and dividend equivalents declared epurchas e of common stock Share-based compensation Common stock issued, net of shares (970) 0 10,676) 0 (22,950) 0 (328,837) 2,253 withheld for employee taxes 48,873 (143) (444) (587) Tax benefit from equity awards, including 1,232 123,549 39,510 1,553 11,215) transfer pricing adjustments Balances as of September 28, 2013 0 1,232 0 (471) 0 1,553 6,294,494 19,764 104,256 39,510 Net income Other comprehensive income/loss) Dividends and dividend equivalents declared 0 (11,215) Repurchase of common stock Share-based compensation Common stock issued, net of shares (488,677) 0 0 (45,000) 0 45,000) 2,863 2,863 0 withheld for employee taxes 60,344 (49) (399) 0 Tax benefit from equity awards, including transfer pricing adjustments Balances as of September 27, 2014 0 735 0 0 735 5,866,161 $ 23,313 S 87,152 $ 1,082 $111,547 See accompanying Notes to Consolidated Financial Statements. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) Years ended September 27, 2014 September 28, 2013 September 29 2012 $ 14,259 10,746$ 9,815 Cash and cash equivalents, beginning of the year Operating activities: Net income 39,510 37,037 41,733 Adjustments to reconcile net income to cash generated by operating activities: epreciation and amortization hare based compensation e pense eferred incometa e pense 7,946 2,863 2,347 6,757 2,253 1,141 3,277 1,740 4,405 Changes in operating assets and liabilities: (4,232) (76) (2,220) 167 5,938 1,460 6,010 59,713 Accounts receivable, net Inventories (2,172) 973) endor non trade receivables Other current and non current assets Accounts payable Deferred revenue Other current and non-current liabilities 1,080 2,340 1,459 4,521 53,666 (5,551) (15) (1,414) (3,162) 4,467 2,824 2,552 50,856 Cash generated by operating activities Investing activities: urchases of mar etable securities 217,128) (148,489 (151,232) 13,035 99,770 roceeds from maturities of mar etable securities Proceeds from sales of mar etable securities Payments made in connection with business acquisitions, net Payments for acquisition of property, plant and equipment Payments for acquisition of intangible assets Other 20,317 104,130 (496) (8,165) (911) (160) (33,774) 18,810 189,301 (3,765) (9,571) 42 16 22,579) (350) (8,295) (1,107) (48) (48,227) Cash used in investing activities