Use Apple's financial statements In Appendix A to answer the following. Required: 1. Using fiscal 2017 as the base year, compute trend percents for fiscal years 2017, 2018, and 2019 for total net sales, total cost of sales. operating Income, other Income (expense) net, provision for Income taxes, and net Income. 2. Compute common-size percents for fiscal years 2018 and 2019 for the following categories of assets: (a) total current assets; (b) property, plant and equipment, net; and (c) accounts receivable, 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 2019? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using fiscal 2017 as the base year, compute trend percents for fiscal years 2017, 2018, and 2019 for total net sales, total cost of sales, operating income, other income (expense) net, provision for income taxes, and net income. (Input all the values as positive numbers. Enter your answers in millions. Round your percentage answers to 1 decimal place.) Fiscal 2019 Fiscal 2018 Fiscal 2017 Net Sales % 5 260,174 265.595 $ 220.234 Cost of sales S 161,782 183.756 $ 141.048 Operating income 5 63,930 70,898 61.344 Other income (expense) 1,807 S 2,005 2.745 Provision for income taxes 5 10,481 13,372 15,738 Net income Required 1 Required 2 Required 3 Compute common-size percents for fiscal years 2018 and 2019 for the following categories of assets: (a) total current assets; (b) property, plant and equipment, net; and (c) accounts receivable, net. (Enter your answers in millions. Round your percentage answers to 1 decimal place.) 2019 2018 Total current assets Property, plant and equipment, net Accounts receivable, net Required 1 Required 2 Required 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 2019? Apple's asset makeup become in 2019. Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 28, 2019 September 29, 2018 ASSETS Current assets Cash and cash equivalents 48,844 25.913 Marketable securities 51,713 40.388 Accounts receivable, net 22,926 23.1 86 Inventories 4,106 3.956 Vendor non-trade receivables 22,878 25.809 Other current assets 12,352 12.087 Total current assets 162,819 131.339 Non-current assets Marketable securities 105,341 170.799 Property, plant and equipment, net 37,378 41.304 Other non-current assets 12,978 22,283 Total non-current assets 175,697 234.386 Total assets 338,516 365.725 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable 46,236 55.888 Other current liabilities 37,720 33.327 Deferred revenue 5,521 5.966 Commercial paper 5,980 11.964 Term debt 10,260 8. 784 Total current liabilities 105,718 1 15.929 Non-current liabilities Term debt 91,807 93.735 Other non-current liabilities 50,503 48,914 Total non-current liabilities 142,310 142.649 Total liabilities 248,028 258.578 Commitments and contingencies Shareholders' equity Common stock and additional paid-in capital, $0.00001 par value: 12.600,000 shares authorized: 4.443.236 and 4,754,986 shares issued and outstanding. respectively 45,174 40.201 Retained earnings 45,898 70,400 Accumulated other comprehensive income (loss) (584) (3.454) Total shareholders' equity 90,488 107,147 Total liabilities and shareholders' equity 338 516 365.725 See accompanying Notes to Consolidated Financial Statements.Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) Years ended September 39, 2019 September 29, 3018 icplenaber 30, 2017 Products 213.883 215,847 196.534 Services 46.201 Told net sales 30 174 265 505 Cool of soalex Products 144 906 148,164 126,337 16. 785 15,592 14,711 Told cut of sales 161.761 163,756 141.048 Gries margin OR 302 101,839 Operating expenses Research and development 16 217 14.236 11.541 Selling general and administratine UR. 245 16,705 15.261 Total operating expenses 34.462 30,941 26,842 Operating income 70.398 61.344 Other income (expense), net 1.807 2.005 2,745 Income belove provision for income lives 65.737 72,203 64,089 Provision for income bar DD.ARI ILE'EI 15,738 Net income 55.256 IES 65 43,351 Earnings per share: Bask 1 1.97 1201 Diluted 0.21 Shines used in computing earnings per share: Basic 4,617.834 4,955,377 5.217,242 Diluted 5,000, 109 5.251,612 See accompanying Noles to Consolidated Financial Statements. Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME In millions) Years ended September 28, 2019 Soplember 19. 2018 September 30, 2017 Net income $5 256 5 48,351 Other comprehensive income (lessk Change in foreign currency translation, act of tax Change in unrealized gainedlosses on derivative intruments, net of lax: Change in fair value of derivatives STE SIET Adjustment for net (gains) loses realized and included in net income (1.417) Told change in unrealized gains losses on derivative instruments 162 Chinge in unrealized pairs losses in marketable securities, net of lax! Change in fair value of marketable securities 3.307 (3.407 (782) Adjustment for net (gains) loses realized and included in net income Total change in unrealized gains losses on marketable securities 3.827 (3.405) (845) Total other comprehensive income (less) 3.036 (784 Total comprehensive income 47.967 See accompanying Noles to Consolidated Financial Statements.Apple Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY In millions) Year ended September 28, 2019 Soplember 29, 2018 September 30, 2017 Total shareholders" equity, beginning balances 107,147 134 047 134,240 Common shock and additional paid in capital Beginning balances 40,201 35.867 Common stock issued 660 555 Common stock withheld related in act share sculement of equity swank (2,012) (1.778) [1465) Share-based compensation 6,194 Ett's Tax benefit from equity swank, including transfer pricing adjustments Ending balances 45,174 40 201 35.657 Retained earnings Beginning balances 70,4030 18 330 06 364 Net income 35,356 Dividends and dividend equivalents declared (14,120) (13 735) Common stock withheld related in net share settlement of equity awards Common stock repurchased (67,101) (73.056) Cumulative effects of changes in accounting principles 2.501 Ending balances DEE RI Accumulated other comprehensive income (less) Beginning balances (3.454) 1 50 634 Chather comprehensive income (loss) 2,781 Cumulative effects of changes in accounting principles 1278 Ending balances 1584 3.454 Touil shareholders' equity, ending balances 107-147 134,047 See accompanying Notes to Consolidated Financial SulemanApple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) Years ended September 28, 2019 September 29, 2018 September 30, 3017 Cash cash equivalents anal reauricard cash, beginning balances 30 25 Operating activities Net income 55.256 ISE BF Adjustments In reconcile net income woreish generated by operating activities: Depreciation and amortization 12 547 10,157 Share-hased compensition expert 6 068 5.340 4,340 Deferral income tax expense (benchin) 1340) 1652) (44-4) Changes in operating assets and lichilinice Accounts receivable, met 245 (5.312) (2,093 Inventories (2.723 Vendor non-trade receivables 2031 ROION (4,2541 Other current and non-current soacts 873 (3,318) Accounts payable Deferred revenue Other curreal and non-current liabilities 14.700) 38.440 1,0302 Cush generated by operating activities 19 391 J7.434 Investing activities Purchases of marketable securities (30.630) 171.356) (159,486) Proceeds from maturities of marketsble securities 40 102 55 REI 31,775 Proceeds from sales of marketable securities 56 ORR 14,564 Payments for acquisition of properly, plant and equipment NEIEEIN (12,451) Payments made in connection with business acquisitions, net 720 Purchases of non-marketsble securities (521) Proceeds from non-marketable securities 1.634 353 126 (745 (124 Cush generated by (used in) investing activities 16 06 Financing activities Proceeds from issuance of common stock 7EI 555 Payments for bases related in net share sculement of equity awands (2 817) Payments for dividends and dividend equivalents 114.1 19) [13,712) Repunchines of common stock 166.897) 172,738) Proceeds from isuance of term debt, net 6 063 6060 28.612 Repayments of lem del 13 500 Proceeds from (Repayments of ) commercial paper, net (5.977) (37) 3.352 Other Cash med in financing activities 190 976) (17974) Increase (decrease) in cinch, cash equivalents and matricked cash 5.614 195 Cash cash equivalents and restricted cash, ending balances 50 214 20 281 Supplemental cash flow disclosure! Cich paid for income lakes, nel 15.263 10.417 165 11 Cash paid for interest 3012 2,0302 See accompanying Notes In Comofdated Financial Statements