-/10 (b) What percentage of Apple's authorized common stock was issued at September 30, 2017? (Round answer to decimal places, es 17%) Percentage of common stock issued % (c) How many shares of common stock were outstanding at September 24, 2016, and at September 30, 2017? (Enter the answers in thousands.) 2017 2016 Number of shares outstanding (d) Calculate the payout ratio, earnings per share, and return on common stockholders' equity for 2017. (Round earnings per share to 2 decimal places, eg. 15.12 and all other answers to 1 decimal places, eg, 12.5%) Payout ratio % Earnings per share Return on common stockholders' equity Apple Ine. CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except number of shares which are reflected in thousands and per share amount) $ September 30, 2017 229.234 141,048 88,186 Net sales Cost of sales Gross margin Years ended September 24 2016 215.639 131,376 84.263 $ September 26, 2015 233,715 140.000 93.626 Operating expenses Research and development Selling, peneral and administrative Total operating expenses 11.581 15,261 26.842 10.045 14,194 24.230 8.067 14,329 22,396 Operating income Other income expense), net Income before provision for income taxes Provision for income taxes Net income 61.344 2,745 64.000 15.738 48,351 60.024 1,348 61,372 15.685 45.687 71,230 1,285 72,515 10.121 53,394 $ Esmingo por share: Basic Diluted 9.27 $ 9.21 8.35 $ 8.31 $ 9.28 9.22 Shares used in computing camnings per share: Basic Diluted 5.217.242 5.251,692 5.470,820 5.500.281 5,753.421 5,793,069 2.40 $ 2.18 1.98 $ Cash dividends declared per share Soo accompanying Notes to Consolidated Financial Statements Apple Inc. See accompanying Notes to Consolidated Financial Statements Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) Years ended September 24 2016 45,687 September 30, 2017 48,351 September 26, Net income $ 53,304 224 75 Other comprehensive income (loss): Change in foreign currency translation, net of tax effects of $177), S8 and $201. respectively Change in unrealized gains/osses on derivative instruments: Change in fair value of derivatives, net of tax benefityexpense) of $(478), 8(7) and $(441), respectively Adjustment for net (gains)losses realized and included in net income, net of tax expense benefit of $475, 5131 and 5630, respectively Total change in unrealized gains toutes on derivative Instruments, net of tax 1,315 7 2.05 (1.477) (162) (741) (734) (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. 8(863) and S264, respectively Adjustment for net (gains)Mosses realized and included in net income, net of tax expense benefit of $35, $(31) and $(32), respectively Total change in unrealized painslosses on marketable securities, net of tax 50 (64) (846) 50 1.838 979 (784) 47.567 (1 427) 51.957 $ 46.666 Total other comprehensive income (loss) Total comprehensive income See accompanying Notes to Consolidated Financial Statements Apple Inc. CONSOLIDATED BALANCE SHEETS sallinne avant number of shares which are reflected in thousands and par value) Becompanying to con Apple Inc. CONSOLIDATED BALANCE SHEETS in mitos, exceptumber of shares which are reflected in hands and para September 2017 ASSETS: Peptember 2010 2020 Current as Cash and cash equivalents Short-term marble securities Accounts receivable, less allowances of $58 and 553, respectively Inventories Vendor non-trade receivables Other current assets Total current assets 20.44 1371 15.754 2,132 17.790 13,00 121.145 0.30 10. 194714 170.630 Long-term marketable securities Property, plant and equipment, net Goodwill Acquired intangible assets, net Other non-current assets Total asset 6,717 2.290 1.414 2200 757 21.600 10.109 375,319 LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities: Accounts payable Accrued expenses Deferred revenue Commercial paper Current portion of long-term debit Total current liabilities 25.744 7.50 11.977 6.400 100.814 0.000 8.106 3,800 79,000 Deferred revenue, non-current Long-term debt Other non-current liabilities Total liabilities 2.836 97,207 40.415 241.272 2.000 75-427 36,074 190437 mate and eatingencies SIDST LIABILITIES AND SHAREHOLDERS' EQUITY: S 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 debit 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, 50.00001 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 (1088) Total shareholders' equity Total liabilities and shareholders' equity 35,867 98.330 (150) 134,047 375.319 31.251 90.364 634 128, 249 321.680 $ Soo 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 Retained Accumulated Other Comprehensive Income Loss) Total Shareholders Equity Apple Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (in Millions, except number of shares which are reflected in thousandu) Common Stock and Additional Paid In Capital Shares Amount 5,866,161 23,313 Accumulated Other Retained Comprehensive Eamninga Income Los) 87.152 $ 1,082 53,394 (1427) (11,627) (35,026) Total Shareholders Equity 111,547 53.394 (1427) (11.627 (36.026) 3.500 (325,032) 3.586 37.624 (231) (609) (540) 748 27 418 5,578,753 (345) 92.284 45.687 748 119.355 46.687 070 970 (279,600) (12,186) (20.000) Balances as of September 27, 2014 Net Income Other comprehensive income (los) Dividends and dividend equivalents declared Repurchase of common stock Share-based compensation Common stock issued, net of shares withhold for employee taxes Tax benefit from equity awards, including transfer pricing adjustments Balances as of September 26, 2015 Net income Other comprehensive income foss) 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 Not income Other comprehensive income (los) 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 (12.168) (29.000) 4.262 4.262 37,022 (606) (419) (1.225 379 31,251 5.336.168 96,384 48,351 (784) 379 126.249 40 351 (784) (12.800) (30.000) 4.000 (12.803) (33.001) (246.496) 4.000 36,531 (013) (581) 6:20 35,867 (150) 134.047 5,126,201 08.330 dan Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) September 30, 2017 20.454 Years ended September 24 2016 September 26, 2015 $ $ 21,120 13 844 40.35 45.687 53.194 10.50 4210 10.157 4,040 5,906 (166) 49 3.500 1,383 385 527 217 417 (234) Cash and cash equivalents, beginning of the your Operating activities Not income Adjustments to reconcile net income to cath generated by operating activities: Depreciation and amortization Share-based compensation expense Deferred income tax expense Other Changes in operating assets and inities: Accounts receivable net Inventories Vendor non-trade receivables Other current and non-current assets Accounts payable Deferred revenue Other current and non-current abilities Cash generated by operating activities Investing activities Purchases of marble securities Proceeds from maturities of marketable securities Proceeds from sales of marketable securities Payments made in connection with business acquisitions, net Payments for acquisition of property, plant and equipment Payments for acquisition of intangible assets Payments for strategic Investments, net Other Cash used in investing activities Financing activities: Proceeds from issuance of common stock Excess tax benefits from equity awards Paurana anan aalalaalinaal (2,093) (2.723) (4.254) (5.318) 9,618 (626) (154) 63,598 1.055 1.897 11.354 3.030) 65.824 6.001 1.00 9.000 01.200 (106,402) (150,486) 31.775 94,564 (300) (12.451) 21.250 20.500 107,447 039 (11.247) (395) (314) 11.30 (110) (45.927) (20) 140.440) 495 565 027 407 749 100 5330 10.50 4210 250 13 300 217 23 06 137 5.000 2030 6594 1.00 2,048 1142.43 21258 ortation Share based compensation experte 10,157 Deferred income tax expense 4M Other 3.000 Changes in operating and (164 Accounts recent Inventories Vendor non trade movies 2.723) Omer current and non-current (4.2549 Accounts payable 15.318) Deferred revenue 9.618 Other current and non current 18:26) Cash generated by operating activities (154) Investing activities Purchases of marble securities Proceeds from matures of marketable securities (159.406) Proceeds from sales of marble securities 31.775 4.64 Payments made in connection with business acquisitions.net Payment for acquisition of property, plant and equipment (329 (12,451) Payments for acquisition of intangibles (344) Payments for tragic investments, net Other 320 Cost used in investing activities (46.4401 Financing activities Proceeds from suance of common stock 555 Excess tax benefits from equity awards 607 Payments for taxes related to net share settlement of equity awards (1.874) Payments for dividends and dividend equivalent (12.7001 Repurchases of common stock (32.000) Proceeds from suance of term debt.net Repayments of term det (9.500 Change in commercial paper.net 3.852 Cash used in financing activities 1230 (195) Increase/Decrease in cash and cash equivalents Cash and cash equivalents, and of the year 29.200 Supplemental cash flow disclosure Cash paid for income taxes, net 11,501 $ 5 Cash paid for interest See accomanina Notes Consolidated Financial Statement (207 (12,754 14 14 0744 15401 11247) (241) 407 11.5702 (12.11 510 7 1 111.001) 15.2591 27.114 2954 2.500 pen (20.489) 2.101 7.27 21,120 20.484 3 5 10.444 1316 514