urrent Attempt in Progress The financial statements of Apple Inc. for 2017 are presented in Appendix A. Click here to view Appendix A. Refer to Apple's financial statements and answer the following questions. What were Apple's total current liabilities at September 30, 2017? What was the increase/decrease in Apple's total current liabilities from the prior year? Total current liabilities $ million Apple's total current liabilities increased by $ million relative to the prior year. eTextbook and Media How much were the accounts payable at September 30, 2017? Accounts payable $ million Appendix A Specimen Financial Statements: Apple Inc. Once each year, a corporation communicates to its stockholders and other interested parties by issuing a complete set of audited financial statements. The annual report, as this communication is called, summarizes the financial results of the company's operations for the year and its plans for the future. Many annual reports are attractive, multicolored, glossy public relations pieces, containing pictures of corporate officers and directors as well as photos and descriptions of new products and new buildings. Yet the basic function of every annual report is to report financial information, almost all of which is a product of the corporation's accounting system. The content and organization of corporate annual reports have become fairly standardized. Excluding the public relations part of the report (pictures, products, etc.), the following are the traditional financial portions of the annual report: Financial Highlights Letter to the Stockholders Management's Discussion and Analysis Financial Statements Notes to the Financial Statements Management's Responsibility for Financial Reporting Management's Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Selected Financial Data The official SEC filing of the annual report is called a Form 10-K, which often omits the public relations pieces found in most standard annual reports. On the following pages, we present Apple Inc.'s financial statements taken from the company's 2017 Form 10-K. The complete Form 10-K, including notes to the financial statements, is available at the company's website. Apple Inc. Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) Years ended September 30, 2017 September 24, 2016 September 26, 2015 Net sales 233,715 229,234 215,639 Cost of sales 141,048 131,376 140.089 Gross margin 88,186 84,263 93,626 Operating expenses: Research and development 11,581 10,045 8,067 Selling, general and administrative 14,329 15,261 14,194 Total operating expenses 26,842 24,239 22,396 Operating income 71,230 61,344 60,024 Other income/(expense), net 2,745 1,348 1,285 Income before provision for income taxes 64,089 61,372 72,515 Provision for income taxes 15,738 19,121 15,685 Net income 48,351 2$ %24 53,394 2$ 45,687 Earnings per share: Basic 2$ %24 24 9.27 8.35 9.28 Diluted 2$ 9.21 2$ 8.31 24 9.22 Shares used in computing earnings per share: Basic 5,217,242 5,470,820 5,753,421 Diluted 5,251,692 5,500,281 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) Years ended September 26, 2015 September 30, 2017 September 24, 2016 Net income 53,394 48,351 2$ 2$ 45,687 Other comprehensive income/(loss): Change in foreign currency translation, net of tax effects of $(77), $8 and $201, respectively 224 75 (411) 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 2,905 1,315 Adjustment for net (gains)/losses realized and included in net income, net of tax expense/(benefit) of $475, $131 and $630, respectively (741) (1,477) (3,497) Total change in unrealized gains/losses on derivative instruments, net of tax (162) (734) (592) 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 (782) 1,582 (483) Adjustment for net (gains)/losses realized and included in net income, net of tax expense/(benefit) of $35, $(31) and $(32), respectively (64) 56 59 Total change in unrealized gains/losses on marketable securities, net of tax (846) 1,638 (424) Total other comprehensive income/(loss) (784) 979 (1,427) Total comprehensive income 47,567 51,967 46,666 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 20,289 20,484 Short-term marketable securities 53,892 46,671 Accounts receivable, less allowances of $58 and $53, respectively 15,754 17,874 Inventories 4,855 2,132 Vendor non-trade receivables 13,545 17,799 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 Acquired intangible assets, net 2,298 3,206 Other non-current assets 10,162 8,757 Total assets 375,319 24 321,686 LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities: Accounts payable 37,294 49,049 Accrued expenses 25,744 22,027 Deferred revenue 7,548 8,080 Commercial paper 11,977 8,105 Current portion of long-term debt 6,496 3,500 Total current liabilities 100,814 79,006 Deferred revenue, non-current 2,930 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 134,047 128,249 Total liabilities and shareholders' equity 375,319 321,686 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 Accumulated Other Retained Comprehensive Income/(Loss) Total Shareholders' Shares Amount Earnings Equity Balances as of September 27, 2014 23,313 5,866,161 $ 1,082 $ 87,152 111,547 Net income 53,394 53,394 Other comprehensive income/(loss) (1,427) (1,427) Dividends and dividend equivalents declared (11,627) (11,627) Repurchase of common stock (36,026) (325,032) (36,026) Share-based compensation 3,586 3,586 Common stock issued, net of shares withheld for (840) employee taxes 37,624 (231) (609) Tax benefit from equity awards, including transfer pricing adjustments 748 748 Balances as of September 26, 2015 5,578,753 27,416 92,284 (345) 119,355 Net income 45,687 45,687 Other comprehensive income/(loss) 979 979 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 for (806) employee taxes 37,022 (419) (1,225) Tax benefit from equity awards, including transfer pricing adjustments 379 379 Balances as of September 24, 2016 128,249 5,336,166 31,251 96,364 634 Net income 48,351 48,351 Other comprehensive income/(loss) (784) (784) Dividends and dividend equivalents declared (12,803) (33,001) (12,803) Repurchase of common stock (246,496) (33,001) Share-based compensation 4,909 4,909 Common stock issued, net of shares withheld for (913) (1,494) employee taxes 36,531 (581) Tax benefit from equity awards, including transfer pricing adjustments 620 620 Balances as of September 30, 2017 5,126,201 2$ (150) 35,867 98,330 134,047 See accompanying Notes to Consolidated Financial Statements. Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) Years ended September 24, 2016 September 30, 2017 September 26, 2015 Cash and cash equivalents, beginning of the year 20,484 24 21,120 S 13,844 Operating activities: Net income 48,351 53,394 45,687 Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization 10,505 10,157 11,257 Share-based compensation expense 4,840 4,210 3,586 Deferred income tax expense 4,938 1,382 5,966 Other (166) 486 385 Changes in operating assets and liabilities: Accounts receivable, net (2,093) 527 417 Inventories (2,723) 217 (238) Vendor non-trade receivables (4,254) (51) (3,735) Other current and non-current assets (5,318) 1,055 (283) Accounts payable 9,618 1,837 5,001 Deferred revenue 1,042 (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: Purchases of marketable securities (166,402) (159,486) (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 Payments made in connection with business acquisitions, net (329) (297) (343) Payments for acquisition of property, plant and equipment (11,247) (12,451) (12,734) Payments for acquisition of intangible assets (344) (814) (241) Payments for strategic investments, net (395) (1,388) Other 220 (110) (26) Cash used in investing activities (46,446) (45,977) (56.274) 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 (1,570) (1,499) (1,874) Payments for dividends and dividend equivalents (12,769) (11,561) (12,150) Repurchases of common stock (35,253) (32,900) (29,722) Proceeds from issuance of term debt, net 28,662 24,954 27,114 Repayments of term debt (3,500) (2,500) Change in commercial paper, net 2,191 3,852 (397) Cash used in financing activities (17,347) (20,483) (17,716) Increase/(Decrease) in cash and cash equivalents (195) (636) 7,276 Cash and cash equivalents, end of the year 20,289 24 20,484 21,120 Supplemental cash flow disclosure: Cash paid for income taxes, net 2$ 13,252 2$ 11,591 10,444 Cash paid for interest 2$ 2,092 1,316 514 See accompanying Notes to Consolidated Financial Statements