Use Apple's financial statements in Appendix A to answer the following. Required: 1. Using fiscal 2015 as the base year, compute trend percents for fiscal years 2015, 2016, and 2017 for net sales, cost of sales, operating income, other income (expense) net. provision for income taxes, and net income. 2. Compute common-size percents for fiscal years 2016 and 2017 for the following categories of assets: (a) total current assets; (b) property, plant and equipment, net and (c) goodwill plus acquired intangible assets, net 3. Using current assets as a percent of total assets to measure liquidity, did Apple's asset makeup become more liquid or less liquid in 2017? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using fiscal 2015 as the base year, compute trend percents for fiscal years 2015, 2016, and 2017 for net sales, cost of sales, operating income, net, provision for income taxes, and net income. (Input all the values as positive numbers. Enter your answers in millions. Round your percent place.) Fiscal 2017 % 96 Fiscal 2016 % % Fiscal 2015 % % 96 Net Sales Cost of sales Operating income Other Income (expense) Income taxes (provision for income taxes) Net income % % % % % 96 S Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required Required 3 Compute common-size percents for fiscal years 2016 and 2017 for the following categories of assets: (a) (b) property, plant and equipment, net; and (c) goodwill plus acquired intangible assets, net. (Enter your Round your percentage answers to 1 decimal place.) Sep. 30, 2017 % Sep. 24, 2016 % Total current assets Property, plant and equipment, net Goodwill and other intangible assets % % % September 26, 2015 233,715 $ 93,626 CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands und per share amounts) Years ended September 10, 2017 September 24, 2016 Net sales $ 229,234 $ 215.639 Cost of sales 141.048 131376 Geoss margin 88,186 14263 Operating expenses Research and development 11.581 10,045 Selling general and administrative 15.261 14,194 Toul operating expenses 2432 Operating income 61.344 B0024 Other income (expense), net 2,745 1,348 Income before provision for income taxes 64,089 61,372 Provision for income taxes 15,738 15.685 Net income 45351 5 45,687 8,067 14329 71.230 1,285 72,515 19.121 53.394 Earnings per share $ $ 8.35 8.31 9.28 9.22 5 Diluted 9.21 $ Shares uned in competingmingsper Share: Hak 5.217.242 Dilated 5.251.692 Cash dividends declared por share $ 2.40 $ See accompanying Notes to Consolidated Financial Statements 5.47020 5.500.21 2.18 5.753,421 5.793.069 1.98 $ September 26, 2015 53.394 (411) 2.905 Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in million) Years ended September 30, 2017 September 24, 2016 Net income $ 4351 5 45.687 Other comprehensive income (lous Change in foreign currency translation, net of tax effects of 77.58 and 5201, respectively 234 75 Change in unrealized in losses oa derivative Instruments: Change in fair value of derivatives, net of tax benefit (expense) of S(478). 5) and 5:441) respectively 1.315 7 Adjustment for net(gains) losses realized and included in net income net of tax expense thenefit of 5475, 5131 and 5630, respectively (1.477) (741) Total change in unrealed gainviews on derivative instruments, net of tax (162) (734) Change in unrealed gainvlosses on marketable securities Change in fair value of marketable securities, not of tax benefit (expense of $425, 3) and 5251, respectively (782) 1.582 Adjustment for net(gains) losses realized and included in net income net of tax expense (henetin of $35.31 and 32. respectively 161) 56 Total change in realized gallosses on marketable securities, met ortas (816) 1.61 To ad other comprehendeincomes) 786 979 Tocal comprehensive income 5 47567 th (593) (483) 59 ST See accompany Nato Cdated Financial Statement A-4 Appendix A Financin Statement information Apple Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In millions, except number of shares which are reflected in thousandi) Accumulated Other Common Stock and Comprehensive Total Additional Paid In Capital Retained Income Shareholders Shares Amount Farnings (Loss) Equity Balances as of September 27, 2014 5,866,161 S 23,313 S 87,1525 1,082 111.547 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 (325,032) (36,026) (36,026) Share-based compensation 3.586 3.586 Common stock issued, net of shares withheld for employee taxes 37,624 (231) (609) (840) Tas bcncfit from equity awards, including transfer pricing adjustments 748 748 Balances as of September 26, 2015 5.578.753 S 27,416 $ 92.284 5 (345) S 119,355 Net income 45,687 45.687 Other comprehensive income (lass) 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, nct of shares withheld for employee taxes 37.6122 (806) (419) (1.225) Tax benefit from equity awards, including transfer pricing adjustments 379 379 Balances as of September 24, 2016 5.336.166 31.251 $ 96,3645 6.34 S 128249 Net income 48,351 48351 Other comprehensive income (less) (784) (784) Dividends and dividend equivalents declared (12.803) (12.803) Repurchase of como stock (246.496) (33.001) (33.001) Share based compensation 4.909 4.900 Common stock ied, net of shares withheld for employee aces 36.531 (913) (581) Tax benefit from equity awards including transfer pricing adjustments 620 20 Balances as of September 30, 2017 5.126,201 S35.867 S 98.330$ (150) 134,047 See accompanying Notes to Consolidated Financial Statements APE September 26, 2015 S 13.844 53,394 11.257 3.586 1,382 385 527 417 (238) (3.735) (283) 5.001 1,042 9,058 81.266 CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) Years ended September 30, 2017 September 24, 2016 Cash and cash equivalents, beginning of the year $ 20,484 $ 21.120 Operating activities Net income 48,351 45.687 Adjustments to reconcile net income to cash generated by operating activities Depreciation and amortization 10,157 10.50 Share based compensation expense 4840 4.210 Deferred Income tax expense 5.966 4,938 Other (166) 486 Changes in operating assets and liabilities: Accounts receivable, net 12.093) Inventories (2.723) 217 Vendor non-trade receivables (4.254) (51) Other current and non-current assets (5.318) 1.055 Accounts payable 9.618 1,837 Deferred revenue (626) (1.554) Other current and non-current liabilities (IS) (2033 Cash generated by operating activities 63 598 65.824 Investing activities Purchases of marketable securities (159.486) (142428) Proceeds from maturities of marketable securities 31.775 21.258 Proceeds from sales of marketable securities 94.564 90.336 Payments made in connection with business acquisitions, net (329) (297) Payments for acquisition of property, plant and equipment (12.451) (12.734) Payments for acquisition of intangible assets (344) (814) Payments for strategic investments, net (395) (1.35) Oxher 220 (110) Cash used in investing activities (46.446) (45.977) Financing activities: Proceeds from suance of common stock 555 495 Excess tax benefits from equity awards 627 407 Payments for tiles related to share settlement of equity awards (1.874) (1.570) Payments for dividends and dividend equivalents (12,700) (12.150) Reparchases of common stock (32.000 (29.722) Proceeds from issuance of lerni del net 28.662 24.954 Repayments of term debit (3.500 Change in commercial paper, net 3.852 (397) Cash used in financing activities (17.347) (20,483) Increase (decrease) in cash and cash cuivalent (195) 1636) Cash and chcquivalents, end of the year 20.289 20484 (166,402) 14,518 107,447 (343) (11.247) (241) (26) (56_274) 543 (1.499) (11.561) (35.253) 27.114 2.191 (17.716) 7.270 21.120 Supplemental cash flow disclosure: Cash paid for income taxes, ne Cach paid for interest 5 5 11.50 2,092 10.444 1316 1352 SI S 5 S See accompanying Notes to Consolidated Statemente