Required: 1. What amount of inventories did Apple report as a current asset (a) on September 30, 2017? (b) On September 24, 2016? 2. Inventories make up what percent of total assets (a) on September 30, 2017? (b) On September 24, 2016? 3. Assuming Apple has enough inventory to meet demand, does Apple prefer inventory to be a lower or higher percentage of total assets? 4. Compute (a) inventory turnover for fiscal year ended September 30, 2017, and (b) days' sales in inventory as of September 30, 2017. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 What amount of inventories did Apple report as a current asset (a) on September 30, 2017? (b) On September 24, 2016? Amount (a) September 30, 2017 (b) September 24, 2016 Required: 1. What amount of inventories did Apple report as a current asset (a) on September 30, 2017? (b) On September 24, 2016? 2. Inventories make up what percent of total assets (a) on September 30, 2017? (b) On September 24, 2016? 3. Assuming Apple has enough inventory to meet demand, does Apple prefer inventory to be a lower or higher percentage of tota assets? 4. Compute (a) inventory turnover for fiscal year ended September 30, 2017, and (b) days' sales in inventory as of September 30, 2 Complete this question by entering your answers in the tabs below. Required 3 Required 1 Required 2 Required 4 Assuming Apple has enough inventory to meet demand, does Apple prefer inventory to be a lower or higher percentage of total assets? Does Apple prefer inventory to be a lower or higher percentage of total assets? Required: 1. What amount of inventories did Apple report as a current asset (a) on September 30, 2017? (b) On September 24, 2016? 2. Inventories make up what percent of total assets (a) on September 30, 2017? (b) On September 24, 2016? 3. Assuming Apple has enough inventory to meet demand, does Apple prefer inventory to be a lower or higher percentage of total assets? 4. Compute (a) inventory turnover for fiscal year ended September 30, 2017, and (b) days' sales in inventory as of September 30, 2017. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Inventories make up what percent of total assets (a) on September 30, 2017? (b) On September 24, 2016? (Round your answers to 2 decimal places.) Total Assets (a) September 30, 2017 (b) September 24, 2016 AA 6-1 Company Analysis LO C2, A3 Use Apple's financial statements in Appendix A to answer the following. Required: 1. What amount of inventories did Apple report as a current asset (a) on September 30, 2017? (b) On September 24, 2016? 2. Inventories make up what percent of total assets (a) on September 30, 2017? (b) On September 24, 2016? 3. Assuming Apple has enough inventory to meet demand, does Apple prefer inventory to be a lower or higher percentage of total assets? 4. Compute (a) inventory turnover for fiscal year ended September 30, 2017, and (b) days' sales in inventory as of September 30, 2017. Complete this question by entering your answers in the tabs below. Required 2 Required 4 Required 1 Required 3 Compute (a) inventory turnover for fiscal year ended September 30, 2017, and (b) days' sales in inventory as of September 30, 2017. (Round "Inventory turnover" to 1 decimal place and "Days' sales in inventory" to 2 decimal places.) (a) Inventory turnover (b) Days' sales in inventory times days 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 20,484 20,289 Short-term marketable securities 53,892 46,671 Accounts receivable, less allowances of $58 and $53, respectively 17,874 15,754 Inventories 2,132 4,855 Vendor non-trade receivables 17,799 13,545 Other current assets 13,936 8,283 Total current assets 128,645 106,869 Long-term marketable securities 194,714 170,430 Property, plant and equipment, net 33,783 27,010 Goodwill 5,717 5,414 3,206 Acquired intangible assets, net 2,298 10,162 Other non-current assets 8,757 Total assets 24 375,319 321,686 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable 37.294 49,049 Acerued expenses 25,744 22,027 Deferred revenue 8,080 7,548 Commercial paper 11,977 8,105 Current portion of long-term debt 6,496 3,500 Total current liabilities 100,814 79,006 2,930 Deferred revenue, non-current 2,836 Long-term debt 97,207 75,427 Other non-current liabilities 40,415 36,074 Total liabilities 241,272 193,437 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 35,867 31,251 Retained earnings 98,330 96,364 Accumulated other comprehensive income (loss) (150) 634 Total shareholders' equity 128,249 134,047 Total liabilities and shareholders' equity 321,686 375,319 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) Accumulated Other Common Stock and Comprehensive Total Additional Paid-In Capital Shareholders' Retained Income Shares Equity Amount Earnings (Loss) Balances as of September 27, 2014 5,866,161 $ 23,313 $ 87,152 $ 1,082 S 111,547 53,394 Net income 53,394 Other comprehensive income (loss) (1,427) (1,427) Dividends and dividend equivalents declared Repurchase of common stock Share-based compensation (11,627) (11,627) (36,026) (325,032) (36,026) 3,586 3,586 Common stock issued, net of shares withheld for employee taxes Tax benefit from equity awards, including transfer pricing adjustments (840) 37,624 (231) (609) 748 748 5,578,753 $ 27,416 $ 2$ Balances as of September 26, 2015 92,284 (345) S 119,355 Net income 45,687 45,687 979 Other comprehensive income (loss) 979 Dividends and dividend equivalents declared (12,188) (12,188) Repurchase of common stock (279,609) (29,000) (29,000) Share-based compensation 4,262 4,262 Common stock issued, net of shares withheld (806) for employee taxes Tax benefit from equity awards, including transfer pricing adjustments 37,022 (419) (1,225) 379 379 31,251 $ Balances as of September 24, 2016 5,336,166 S 96,364 $ 634 128,249 Net income 48,351 48,351 Other comprehensive income (loss) (784) (784) (12,803) Dividends and dividend equivalents declared (12,803) Repurchase of common stock (246,496) (33,001) (33,001) Share-based compensation 4,909 4,909 Common stock issued, net of shares withheld 36,531 for employee taxes Tax benefit from equity awards, including transfer pricing adjustments (913) (581) (1,494) 620 620 35,867 98,330 $ Balances as of September 30, 2017 5,126,201 S (150) S 134,047 See accompanying Notes to Consolidated Financial Statements. Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) September 30, 2017 September 24, 2016 September 26, 2015 Years ended 2$ Cash and cash equivalents, beginning of the year 20,484 21,120 13,844 Operating activities: Net income 48,351 45,687 53,394 Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization Share-based compensation expense 10,505 10,157 11,257 4,210 4,840 3,586 Deferred income tax expense 5,966 4,938 1,382 Other (166) 486 385 Changes in operating assets and liabilities: (2,093) Accounts receivable, net 527 417 (238) Inventories (2,723) 217 (3,735) Vendor non-trade receivables (4,254) (51) (283) Other current and non-current assets (5,318) 1,055 Accounts payable 9,618 1,837 5,001 1,042 Deferred revenue (626) (1,554) Other current and non-current liabilities (154) (2,033 9,058 Cash generated by operating activities 63,598 65,824 81,266 Investing activities: (159,486) (166,402) Purchases of marketable securities (142,428) Proceeds from maturities of marketable securities 31,775 21,258 14,538 Proceeds from sales of marketable securities 94,564 90,536 107,447 (297) Payments made in connection with business acquisitions, net (329) (343) (11,247) Payments for acquisition of property, plant and equipment (12,451) (12,734) (344) (241) Payments for acquisition of intangible assets (814) Payments for strategic investments, net (395) (1,388) Other 220 (110) (26) (56,274) Cash used in investing activities (46,446) (45,977) Financing activities: Proceeds from issuance of common stock 555 495 543 Excess tax benefits from equity awards 627 407 749 Payments for taxes related to net share settlement of equity awards (1,874) (1,570) (1,499) (12,769) (11,561) Payments for dividends and dividend equivalents (12,150) Repurchases of common stock (32,900) (29,722) (35,253) Proceeds from issuance of term debt, net 28,662 24,954 27,114 Repayments of term debt Change in commercial paper, net (3,500) (2,500) (397) 3,852 2,191 (20,483) (17,716) Cash used in financing activities (17,347) 7,276 Increase (decrease) in cash and cash equivalents (195) (636) 20,484 21,120 Cash and cash equivalents, end of the year 20,289 Supplemental cash flow disclosure: 13,252 Cash paid for income taxes, net 11,591 10,444 24 2$ 24 Cash paid for interest 2,092 1,316 514 See accompanying Notes to Consolidated Financial Statements