Understanding a company's major sources and uses of cash and how cash is being used in the business through the analysis of the statement of cash flows is essential. This analysis guides financial decision making and is used to determine financial strengths and weaknesses within the company.

The accounting manager has asked you to prepare a 5-10 minute presentation for company stakeholders summarizing your analysis of the statement of cash flows and the financial strengths and weaknesses of the company.

Using Apple Inc

1. Discuss the Apply Inc major sources of cash in each of the three sections.
2. Discuss the Apply major uses of cash in each of the three sections.
3. Discuss Apple Inc major differences between the net income and the cash provided or used by operating activities, and explain the cause of the major difference between the two values.
4. Summarize the financial strengths of Apple Inc business and justify your analysis based on evidence in the statement of cash flows. Include discussion of whether you anticipate the company will experience continued success and explain why. Only information from the statement of cash flow should be referenced.
5. Summarize the financial weaknesses of the business and justify your analysis based on evidence in the statement of cash flows. Include discussion of whether you anticipate the company will experience continued challenges in this area and explain why. Only information from the statement of cash flow should be referenced.

2019 Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) Years ended September 28, September 29, September 30, 2018 2017 ash, cash equivalents and restricted cash, beginning balances $ 25,913 $ 20,289 $ 20,484 perating activities: Net income 55,256 59,531 48,351 Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization 12,547 10,903 10,157 Share-based compensation expense 6,068 5,340 4,840 Deferred income tax expense/(benefit) (340) (32,590) 5,966 Other (652) (444) (166) Changes in operating assets and liabilities: Accounts receivable, net 245 (5,322) (2,093) Inventories (289) 828 (2,723) Vendor non-trade receivables 2,931 (8,010) (4,254) Other current and non-current assets 873 (423) (5,318) Accounts payable (1,923) 9,175 8,966 Deferred revenue (625) (593) Other current and non-current liabilities (4,700) 38,449 1,092 Cash generated by operating activities 69,391 77,434 64,225 vesting activities: Purchases of marketable securities (39,630) (71,356) (159,486) Proceeds from maturities of marketable securities 40,102 55,881 31,775 Proceeds from sales of marketable securities 56,988 47,838 94,564 Payments for acquisition of property, plant and equipment (10,495) (13,313) (12,451) Payments made in connection with business acquisitions, net (624) (329) Purchases of non-marketable securities (1,001) (1,871) (521) Proceeds from non-marketable securities 1,634 126 Other (1,078) (745) (124) Cash generated by used in) investing activities 45,896 16,066 (46,446) nancing activities: Proceeds from issuance of common stock 781 669 555 Payments for taxes related to net share settlement of equity awards (2,817) (2,527) (1,874) Payments for dividends and dividend equivalents (14,119) (13,712) (12,769) Repurchases of common stock (66,897) (72,738) (32,900) (3) (721) 353 1,634 (1,078) 45,896 353 (745) 16,066 126 (124) (46,446) Proceeds from non-marketable securities Other Cash generated by used in) investing activities nancing activities: Proceeds from issuance of common stock Payments for taxes related to net share settlement of equity awards Payments for dividends and dividend equivalents Repurchases of common stock Proceeds from issuance of term debt, net Repayments of term debt Proceeds from Repayments of) commercial paper, net Other Cash used in financing activities 781 (2,817) (14,119) (66,897) 6,963 (8,805) (5.977) (105) (90,976) 669 (2,527) (13,712) (72,738) 6.969 (6,500) (37) 555 (1,874) (12,769) (32,900) 28,662 (3,500) 3,852 (87,876) (17,974) 5,624 25,913 $ (195) 20,289 Increase/(Decrease) in cash, cash equivalents and restricted cash 24,311 ash, cash equivalents and restricted cash, ending balances $ 50,224 $ upplemental cash flow disclosure: Cash paid for income taxes, net $ 15,263 $ Cash paid for interest $ 3,423 $ See accompanying Notes to Consolidated Financial Statements. 10,417 $ 3,022 $ 11,591 2,092 Apple Inc. 2019 Form 10-K 33