Use Apple's financial statements in Appendix A to answer the following 1. Identify the total amount of cash and cash equivalents for fiscal years ended (a) September 28, 2019, and (b) September 29, 2018. 2. Compute cash and cash equivalents as a percent of total current assets, total current liabilities, total shareholders' equity, and total assets at fiscal year-end for both 2019 and 2018. 3. Compute the percent change between the beginning and ending year amounts of cash and cash equivalents for fiscal years ended (a) September 28, 2019, and (b) September 29, 2018. 4. Compute the days' sales uncollected as of (a) September 28, 2019, and (b) September 29, 2018. 5. Does Apple's collection of receivables show a favorable or unfavorable change? A appendix Financial Statement Information This appendix includes financial information for (1) Apple (2) Google, and (3) Samsung, Apple states that it designs, manufactures and markets smartphones, personal computers, tablets, wearables, and a cessories, and sells a variety of related services. It competes with both Google and Samsung in the United States and globally. The information in this appendix is taken from annual 10-K reports (or annual report for Samsung) filed with the SEC or other regulatory agency, An annual report is a summary of a com- pany's financial results for the year along with its current financial condition and future plans. This report is directed to external users of financial information, but it also affects the actions and decisions of inter- nal users A company often uses an annual report to showcase itself and its products. Many annual reports in- clude photos, diagrams, and illustrations related to the company. The primary objective of annual reports, however, is the financial section, which communicates much information about a company, with most data drawn from the accounting information system. The content of a typical annual report's financial section follows: Letter to Shareholders Financial History and Highlights Quantitative and Qualitative Disclosures about Risk Factors Management Discussion and Analysis Management's Report on Financial Statements and on Internal Controls Report of Independent Accountants (Auditor's Report) and on Internal Controls Financial Statements Notes to Financial Statements Directors, Officers, and Corporate Governance Executive Compensation Accounting Fees and Services This appendix provides the financial statements for Apple (plus selected notes), Google, and Samsung, (Note: Google is part of Alphabet: we refer to Alphabet as "Google" because of its global familiarity and because Google makes up 99% of Alphabet's revenues.) The appendix is organized as follows: Apple A-1 through A-8 Google A-9 through A-12 Samsung A-13 through A-16 Many assignments at the end of each chapter refer to information in this appendix. We encourage readers to spend time with these assignments: they are especially useful in showing the relevance and diversity of accounting and reporting. APPLE GOOGLE Samsung Special note The SEC maintains the EDGAR Electronic Data Gathering, Analysis, and Retrieval) database'at SEC.gov for US filers. The Form 10-K is the annual report form for most companies. It provides electronically accessible information. The Form 10-KSB is the annual report form filed by small businesses. It requires slightly less information than the Form 10-K. One of these forms must be filed within 90 days after the company's fiscal year-end. (Forms 10-K405, 10 KT: 10-KT405, and 10 KSB405 are slight variations of the usual form due to certain regulations or rules.) September 29, 2018 $ Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 28, 2019 ASSETS Current assets Cash and cash equivalents 48.8-14 Marketable securities 51.713 Accounts receivable, net 22,926 Inventories 4.106 Vendor non-trade receivables 22,878 Other current assets 12,352 Total current assets 162,819 Non-current assets Marketable securities 105.341 Property, plant and equipment, net 37,378 Other non-current assets 32,978 Total non-current assets 175,697 Total assets 338,516 25.913 40.388 23.186 3.956 25.809 12,087 131,339 170.799 41.304 22,283 234,386 365,725 $ 46,236 37.720 5.522 5,980 10,260 105,718 55.888 33,327 5,966 11.964 8,784 115,929 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable Other current liabilities Deferred revenue Commercial paper Term debt Total current liabilities Non-current liabilities Term debt Other non-current liabilities Total non-current liabilities Total liabilities 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 Retained earnings Accumulated other comprehensive income (loss) Total shareholders' equity Total liabilities and shareholders' equity $ 91,807 50,503 142,310 248,028 93,735 48,914 142.649 258,578 45,174 45,898 (584) 90,488 338,516 40,201 70,400 (3.454 107,147 365.725 S See accompanying Notes to Consolidated Financial Statements A-2 Appendix A Financial Statement Information September 30, 2017 196,534 32,700 229.234 Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS In millions, except number of shares which are reflected in thousands and per share amounts) Years ended September 28, 2019 September 29, 2018 Net sales Products $ 213.883 $ 225.847 Services 46,291 39.748 Total net sales 260.174 265,595 Cost of sales Products 144.996 148.164 Services 16,786 15.592 Total cost of sales 161.782 163.756 Gross margin 98.392 101.839 Operating expenses: Research and development 16,217 14.236 Selling, general and administrative 18.245 16,705 Total operating expenses 34.462 30.941 Operating income 63.930 70,898 Other income (expense), net 1.807 2.005 Income before provision for income taxes 65.737 72,903 Provision for income taxes 10,481 13,372 Net income 55.256 S 59,531 126,337 14,711 141.048 88,186 11.581 15,261 26.842 61.344 2.745 64.089 15.738 48,351 S S 11.97 11.89 12.01 11.91 9.27 9.21 $ S S Earnings per share: Basic Diluted Shares used in computing earnings per share: Basic Diluted 4.617.834 4,648,913 4,955,377 5.000,109 5,217.242 5.251,692 See accompanying Notes to Consolidated Financial Statements. Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) Years ended September 28, 2019 September 29, 2018 September 30, 2017 Net income S 55,256 $ 59,5315 48,351 Other comprehensive income (loss): Change in foreign currency translation, net of tax (408) (525) 224 Change in unrealized gains/losses on derivative instruments, net of tax: Change in fair value of derivatives (661) 523 1,315 Adjustment for net (gains) losses realized and included in net income 23 382 (1,477) Total change in unrealized gains/losses on derivative instruments (638) 905 (162) Change in unrealized gains/losses on marketable securities, net of tax: Change in fair value of marketable securities 3.802 (3,407) (782) Adjustment for net (gains) losses realized and included in net income 25 1 (64) Total change in unrealized gains/losses on marketable securities 3,827 (3,406) (816) Total other comprehensive income (loss) 2.781 (3,026 (784) Total comprehensive income 58,037 S 56.505 47.567 See accompanying Notes to Consolidated Financial Statements. September 30, 2017 $ 128.249 Apple Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In millions) Years ended September 28, 2019 September 29, 2018 Total shareholders' equity, beginning balances 107,147 S 134,047 Common stock and additional paid-in capital Beginning balances 40,201 35,867 Common stock issued 781 669 Common stock withheld related to net share settlement of equity awards (2.002) (1.778) Share-based compensation 5,443 Tax benefit from equity awards, including transfer pricing adjustments Ending balances 45,174 40,201 31.251 555 (1.468) 4.909 6.194 620 35.867 70,400 55,256 (14,129) 98.330 59.531 (13,735) 96,364 48,351 (12,803) Retained earnings Beginning balances Net income Dividends and dividend equivalents declared Common stock withheld related to net share settlement of equity awards Common stock repurchased Cumulative effects of changes in accounting principles Ending balances (1.029) (67,101) 2,501 45.898 (948) (73.056) 278 (581) (33,001) 70,400 98.330 634 (3.454) 2,781 (784) Accumulated other comprehensive income (loss) Beginning balances Other comprehensive income (loss) Cumulative effects of changes in accounting principles Ending balances Total shareholders' equity, ending balances 89 (150) (3,026) (278) (3.454) 107,147 (584) 90.488 (150) 134,04 $ S See accompanying Notes to Consolidated Financial Statements. Appendix Pencil Statement formation September 29, 2017 20484 48,351 10,157 4.840 5.966 (166) (2.093) (2.723) (4.254) (5.318) 8.966 (593) 1.092 64.225 Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) Years ended September 22, 2019 September 29, 2018 Cach cash equivalents and restricted cash, beginning balances 25913 s 20.289 Operating activities Net income 55.256 59.531 Adjustments to reconcile net income to ensh generated hy operating activities: Depreciation and amortization 12.547 10.903 Share based compensation expense 6,068 5.340 Deferred income tax expense (benefit) (340) (32.590) Other (652) (444) Changes in operating assets and liabilities: Accounts receivable, net 245 (5.322) Inventories (289) Vendor non-trade receivables 2.931 (8,010) Other current and non-current assets 873 (423) Accounts payable (1923) 9.175 Deferred revenue (625) (3) Other current and non-current liabilities (4,700) 38.449 Cash generated by operating activities 69.391 77.434 Investing activities Purchases of marketable securities (39.630) (71,356) Proceeds from maturities of marketable securities 40,102 55,881 Proceeds from sales of marketable securities 56,988 47.838 Payments for acquisition of property, plant and equipment (10,495) (13.313) Payments made in connection with business acquisitions, net (624) (721) Purchases of non-marketable securities (1,001) (1.871) Proceeds from non-marketable securities 1.634 353 Other (1,078) (745) Cash generated by (used in) investing activities 45,896 16,066 Financing activities Proceeds from issuance of common stock 781 669 Payments for taxes related to net share settlement of equity awards (2,817) (2.527) Payments for dividends and dividend equivalents (14,119) (13.712) Repurchases of common stock (66,897) (72,738) Proceeds from issuance of term debt, net 6.963 6.969 Repayments of term debt (8,805) (6,500) Proceeds from (Repayments of commercial paper, net (5.977 (37) Other (105) Cash used in financing activities (90,976 (87,876) Increase (decrease) in cash, cash equivalents and restricted cash 24.311 5,624 Cash, cash equivalents and restricted cash, ending balances 50,224 $ 25.913 (159.486) 31.775 94.564 (12.451) (329) (521) 126 (124) (46,446) 555 (1.874) (12.769) (32.900) 28.662 (3.500) 3.852 (17974) (195 20.289 s S Supplemental cash flow disclosure: Cash paid for income taxes, net Cash paid for interest 15,263 3,423 10.417 3,022 $ S 11.591 2,092 s See accompanying Notes to Consolidated Financial Statements Anperdix A Firincial Statement information APPLE APPLE INC. SELECTED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Basis of Presentation and Preparation In the opinion of the Company's management, the consoli- dated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The preparation of these consoli- dated financial statements and accompanying notes in con- formity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported. The Company's fiscal year is the 52- or 53-week period that ends on the last Saturday of September. The Company's fiscal years 2019 and 2018 spanned 52 weeks each, whereas fiscal year 2017 included 53 weeks. A 14th week was in cluded in the first fiscal quarter of 2017, as is done every five or six years, to realign the Company's fiscal quarters with calendar quarters. Unless otherwise stated, references to particular years, quarters, months and periods refer to the Company's fiscal years ended in September and the associ- ated quarters, months and periods of those fiscal years. Revenue Recognition Net sales consist of revenue from the sale of iPhone, Mac, iPad, Services and other products. The Company recognizes revenue at the amount to which it expects to be entitled when control of the products or services is transferred to its custom- ers. Control is generally transferred when the Company has a present right to payment and title and the significant risks and rewards of ownership of products or services are transferred to its customers. For most of the Company's Products net sales, control transfers when products are shipped. For the Compa- ny's Services net sales, control transfers over time as services are delivered. Payment for Products and Services net sales is collected within a short period following transfer of control or commencement of delivery of services, as applicable. The Company records reductions to Products net sales related to future product returns, price protection and other customer incentive programs based on the Company's ex- pectations and historical experience. For arrangements with multiple performance obliga- tions, which represent promises within an arrangement that are capable of being distinct, the Company allocates reve- nue to all distinct performance obligations based on their relative stand-alone selling prices ("SSPs"). When avail- able, the Company uses observable prices to determine SSPs. When observable prices are not available, SSPs are established that reflect the Company's best estimates of what the selling prices of the performance obligations would be if they were sold regularly on a stand-alone basis. The Company has identified up to three performance obli- gations regularly included in arrangements involving the sale of iPhone, Mac, iPad and certain other products. The first per- formance obligation, which represents the substantial portion of the allocated sales price, is the hardware and bundled software delivered at the time of sale. The second perfor mance obligation is the right to receive certain product-related bundled services, which include iCloud, Siri and Maps. The third performance obligation is the right to receive, on a when-and-if-available basis, future unspecified software up grades relating to the software bundled with each device. The Company allocates revenue and any related discounts to these performance obligations based on their relative SSPs. Be- cause the Company lacks observable prices for the undeliv- ered performance obligations, the allocation of revenue is based on the Company's estimated SSPs. Revenue allocated to the delivered hardware and bundled software is recognized when control has transferred to the customer, which generally occurs when the product is shipped. Revenue allocated to the product-related bundled services and unspecified software upgrade rights is deferred and recognized on a straight-line basis over the estimated period they are expected to be pro- vided. Cost of sales related to delivered hardware and bundled software, including estimated warranty costs, are recognized at the time of sale. Costs incurred to provide product-related bundled services and unspecified software upgrade rights are recognized as cost of sales as incurred. For the sale of third-party products where the Company obtains control of the product before transferring it to the customer, the Company recognizes revenue based on the gross amount billed to customers. The Company considers multiple factors when determining whether it obtains con- trol of third-party products including, but not limited to, evaluating if it can establish the price of the product, retains inventory risk for tangible products or has the responsibility for ensuring acceptability of the product. For thirdparty ap- plications sold through the App Store, Mac App Store, TV App Store and Watch App Store and certain digital content sold through the Company's other digital content stores, the Company does not obtain control of the product before transferring it to the customer. Therefore, the Company ac- counts for such sales on a net basis by recognizing in Services net sales only the commission it retains. The Company has elected to record revenue net of taxes collected from customers that are remitted to governmental au- thorities, with the collected taxes recorded within other current liabilities until remitted to the relevant government authority, Deferred Revenue As of September 28, 2019 and Sep- *tember 29, 2018, the Company had total deferred revenue of $8.1 billion and $8.8 billion, respectively. As of September 28, 2019, the Company expects 68% of total deferred reve- nue to be realized in less than a year, 25% within one-to-two years, 6% within two-to-three years and 1% in greater than three years Advertising Costs Advertising costs are expensed as incurred and included in selling, general and administrative expenses. Apple Inc. Notes continued Other Income and Expense millions Interest and dividend income Interest expense Other income (expense). net Total other income (expense), net 2019 $ 4.961 (3.576) 422 $ 1,807 2018 $ 5,686 (3.240) (441) $ 2,005 2017 $ 5,201 (2,323) (133) $ 2.745 Cash Equivalents and Marketable Securities All highly liquid investments with maturities of three months or less at the date of purchase are classified as cash equivalents. The Company's investments in marketable debt securities have been classified and accounted for as avail- able-for-sale. The Company classifies its marketable debt securities as either short-term or long-term based on each instrument's underlying contractual maturity date. Unrealized gains and losses on marketable debt securities classified as available-for-sale are recognized in other com- prehensive income/(loss) ("OCI"). The Company's investments in marketable equity securi- ties are classified based on the nature of the securities and their availability for use in current operations. The Compa- ny's marketable equity securities are measured at fair value with gains and losses recognized in other income/expense), net ("OI&E"). The cost of securities sold is determined us- ing the specific identification method. Inventories Inventories are measured using the first in, first-out method Property, Plant and Equipment Depreciation on property, plant and equipment is recog- nized on a straight-line basis over the estimated useful lives of the assets, which for buildings is the lesser of 30 years or the remaining life of the underlying building, between one and five years for machinery and equipment, including product tooling and manufacturing process equipment, and the shorter of lease term or useful life for leasehold im- provements. Capitalized costs related to internal-use soft- ware are amortized on a straight-line basis over the estimated useful lives of the assets, which range from three to five years. Depreciation and amortization expense on property and equipment was $11.3 billion, $9.3 billion and $8.2 billion during 2019, 2018 and 2017, respectively. $ millions 2019 2018 Land and buildings $17.085 $16,216 Machinery, equipment and internal-use software 69.797 65,982 Leasehold improvements 9.075 8.205 Gross property, plant and equipment 95,957 90,403 Accumulated depreciation and amortization (58,579) (49.099) Total property, plant and equipment, net $37.378 $41.304 Restricted Cash and Restricted Marketable Securities The Company considers cash and marketable securities to be restricted when withdrawal or general use is legally re- stricted. The Company records restricted cash as other as- sets in the Consolidated Balance Sheets, and determines current or non-current classification based on the expected duration of the restriction. The Company records restricted marketable securities as current or non-current marketable securities in the Consolidated Balance Sheets based on the classification of the underlying securities, The Company's restricted cash primarily consisted of cash required to be on deposit under a contractual agree- ment with a bank to support the Company's iPhone Up- grade Program Fair Value Measurements The fair values of the Company's money market funds and certain marketable equity securities are based on quoted prices in active markets for identical assets. The valuation techniques used to measure the fair value of the Company's debt instruments and all other financial instruments, which generally have counterparties with high credit ratings, are based on quoted market prices or model-driven valuations using significant inputs derived from or corroborated by observable market data. Financial Instruments The Company typically invests in highly rated securities, with the primary objective of minimizing the potential risk of prin- cipal loss. The Company's investment policy generally re- quires securities to be investment grade and limits the amount of credit exposure to any one issuer. Fair values were deter- mined for each individual security in the investment portfolio Accrued Warranty and Guarantees The following table shows changes in the Company's accrued warranties and related costs for 2019 and 2018: Accounts Receivable (Trade Receivables) The Company has considerable trade receivables outstand- ing with its third-party cellular network carriers, wholesal- ers, retailers, resellers, small and mid-sized businesses and education, enterprise and government customers. As of September 28, 2019, the Company had no custom- ers that individually represented 10% or more of total trade receivables. As of September 29, 2018, the Company had one customer that represented 10% or more of total trade re- ceivables, which accounted for 10%. The Company's cellular network carriers accounted for 51% and 59% of total trade receivables as of September 28, 2019 and September 29, 2018, respectively. $ millions Beginning accrued warranty and related costs Cost of warranty claims Accruals for product warranty Ending accrued warranty and related costs 2019 $3,692 (3.857) 3,735 $3,570 2018 $ 3.834 (4.115) 3,973 $ 3,692 Apple Inc. Notes continued APPLE Other Non-Current Liabilities S millions Long-term taxes payable Other non-current liabilities Total other non-current liabilities 2019 2018 $29.545 $33.589 20.958 15,325 $50,503 $48.914 the Company's financial condition and operating results for that reporting period could be materially adversely af fected. In the opinion of management, there was so at least a reasonable possibility the Company may have incurred a material loss, or a material loss greater than a recorded accrual, concerning loss contingencies for asserted legal and other claimis, except for the following matters: VirietX iOS Performance Management Cases Qualcomm French Competition Authority Term Debt As of September 28, 2019, the Company had outstanding floating- and fixed-rate notes with varying maturities for an aggregate principal amount of $101.7 billion (collectively the "Notes"). The Notes are senior unsecured obligations and interest is payable in arrears. The Company recognized $3.2 billion, $3.0 billion and $2.2 billion of interest cost on its term debt for 2019, 2018 and 2017, respectively. The future principal payments for the Company's Notes as of September 28, 2019 are as follows (in millions): Disaggregated Revenue by Significant Products and Services Net sales (mil.) 2019 iPhone 5142.381 Mac 25.746 iPad 21.280 Wearables. Home and Accessories 24,482 Services Total net sales $260.174 2013 2017 $164.225139237 25.19% 25.569 18.802 17.381 12.626 39.75 $265 595 $229 234 2020 2021 2022 2023 2024 Thereafter Total term debt $ 10.270 8,750 9.528 9.290 10,039 53.802 S101.679 2019 2015 2017 S116,914 $ 35.099 SI12.093 $ 34.864 596 500 $30.684 As of September 28, 2019 and September 29, 2018, the fair value of the Company's Notes, based on Level 2 inputs, was $107.5 billion and $103.2 billion, respectively $ 60,288 $ 19.195 5 62.420 $ 19.955 554.938 516514 Reportable segment (mil.) Americas Net sales Operating income Europe Net sales Operating income Greater China Net sales Operating income Japan: Net sales Operating income Rest of Asia Pacific Net sales Operating income $43.678 $ 16.232 $ 51.942 5 19.742 $44.754 $17.632 $ 21.506 $9.369 $ 21.733 $ 9.500 Share Repurchase Program On April 30, 2019, the Company announced the Board of Directors increased the current share repurchase pro- gram authorization from $100 billion to $175 billion of the Company's common stock, of which $96.1 billion had been utilized as of September 28, 2019. During 2019, the Company repurchased 345.2 million shares of its common stock for $67.1 billion, including 62.0 mil- lion shares delivered under a $12.0 billion accelerated share repurchase arrangement dated February 2019, which settled in August 2019. The Company's share re- purchase program does not obligate it to acquire any spe- cific number of shares. $17,333 $ 3.997 $ 17.788 $ 6.055 $ 17,407 $ 6,181 $15.199 5 5304 -A reconciliation of the Company's segment operating income to the Consolidated Statements of Operations for 2019. 2018 and 2017 is as follows: 2019 $ 85,950 2018 590.242 2017 577.531 Contingencies The Company is subject to various legal proceedings and claims that have arisen in the ordinary course of business and that have not been fully resolved. The outcome of litigation is inherently uncertain. If one or more legal matters were resolved against the Company in a report- ing period for amounts above management's expectations, S millions Segment operating income Research and development expense Other corporate expenses.net Total operating income (16.217 5.803) 5 61.930 (14.236) 15.108 $20.998 (11581 4706 561 344 Appendix Financial Statement information Apple Inc. Notes continued Selected Financial Data in millions, except number of shares, which are reflected in thousands, and per share amounts), combines the watchOS user interface and other technolo- gies created specifically for a smaller device. In September 2019, the Company introduced Apple Watch Series 5. Services Total nerves Note Frings per 2010 201N 2017 2016 2015 2014 365,105 S 320.24 215,630 383.715 35.35 1151 5 15.687 $ 22 10 11,0 1201 119 8.35 8,31 5 0.2N 1.22 9.21 3.00 2735 2.40 R$ I.OR Dites ( 4 ) | | | | declared per dur Share red in compitinari er the Basi Diluted 4.61%814 4.61891 4.055.377 3000.109 3.217.242 31281.002 5470.820 5,500 281 5.753.421 5,703,00 $ 305,98 $ 237.100 $ 78,03 237.35 $ 205,666 $ 18.516 $ 305,725 375.319 321.686 $200.145 Total cash cash equivalent and marketable securities Total Non-current portion of turm debi Other non current Habilities S 01.07 S 03,735 S 02,207 75.427 S 53.320 Digital Content Stores and Streaming Services The Company operates various platforms that allow customers to discover and download applications and digital content, such as books, music, video, games and podcasts. These platforms include the App Store", available for iPhone and iPad, the Mac App Store, the TV App Store and the Watch App Store The Company also offers subscription-based digital con- tent streaming services, including Apple Music", which offers users a curated listening experience with on demand radio stations, and Apple TV+, which offers exclusive original con- tent, and is expected to be available in November 2019, AppleCare AppleCare includes AppleCare+ ("AC+") and the AppleCare Protection Plan, which are fee-based services that extend the coverage of phone support eligibility and hardware repairs. AC+ offers additional coverage for instances of accidental damage and is available in certain countries for certain products. Additionally, AC+ with theft and loss protection is available for iPhone in the U.S. iCloud iCloud is the Company's cloud service, which stores music, photos, contacts, calendars, mail, doc- uments and more, keeping them up-to-date and available across multiple Apple devices and Windows personal computers, Licensing The Company licenses the use of certain of its intellectual property, and provides other related services. Other Services The Company delivers a variety of other services available in certain countries, including Apple Arcade", a game subscription service, Apple Card", a co-branded credit card: Apple News+, a sub- scription news and magazine service; and Apple Pay, a cashless payment service, 50,503 3 18.914 14,212 % 39.986 5 38.100 Company Background The Company designs, manufactures and markets smart phones, personal computers, tablets, wearables and acces- sories, and sells a variety of related services. The Company's fiscal year is the 52- or 53-week period that ends on the last Saturday of September. The Company is a California corporation established in 1977, Products iPhone iPhone" is the Company's line of smartphones based on its iOS operating system. In September 2019, the Company introduced three new iPhones: iPhone 11, iPhone 11 Pro and iPhone 11 Pro Max. Mac Mac is the Company's line of personal comput ers based on its macOS operating system. During 2019, the Company released a new version of MacBook Air" and a new Mac mini", and introduced an updated Mac Pro", which is expected to be available in the fall of 2019. iPad iPad" is the Company's line of multi-purpose tab. lets. iPad is based on the Company's iPados operating sys- tem, which was introduced during 2019. Also during 2019, the Company released two new versions of iPad Pro, an iPad Air", an updated iPad mini and a new 10.2-inch iPad. Wearables, Home and Accessories Wearables, Home and Accessories includes AirPods, Apple TV", Apple Watch, Beats products, HomePod, iPod touch and other Apple-branded and third party accessories. AirPods are the Company's wireless headphones that interact with Sini. In October 2019, the Company introduced AirPods Pro Apple Watch is a personal electronic device that Markets and Distribution The Company's customers are primarily in the consumer, small and mid-sized business, education, enterprise and gov- ernment markets. The Company sells its products and resells third-party products in most of its major markets directly to consumers, small and mid-sized businesses, and education, enterprise and government customers through its retail and online stores and its direct sales force. The Company also employs a variety of indirect distribution channels, such as third-party cellular network carriers, wholesalers, retailers and resellers. During 2019, the Company's net sales through its direct and indirect distribution channels accounted for 31% and 69%, respectively, of total net sales. Employees As of September 28, 2019, the Company had approximately 137,000 full-time equivalent employees Go Inc. Allt Inc. CONSOLIDATED BALANCE SHEETS mig sem which relected in this 5 Tashme me mu 355 5 5.56 GOOGLE 550 increases paratie niet 296 Otheristianities Command Couagencies Comic pred stock. S061 pure per shume 100 shares authorised amalaramding: Claes A and Class B stock and Class Capital stock and adal pada capital 1 par vale per a: 15.000.000 CC 3.695.556 Class A 299242 CB 56.536. Class 399.67%) and 335 Chess 299 Class B 46.441 Chess C342066 Sand and outstanding Accumulated the communes 5.09 sa 552 5 232.792 Google players in Godheading Google provides itunes 5160 billion in Ser companying notes Google Inc. (Alphabet Inc.) CONSOLIDATED STATEMENTS OF INCOME in millions) 2018 2017 110,855 $ 136.819 2019 161.8T Year Ended December 31 Revenues Costs and expenses Cost of revenues Research and development Sales and marketing General and administrative European Commission fines Total costs and expenses Income from operations Other income (expense), net Income before income taxes Provision for income taxes Net income 45,583 16,625 12,893 6,840 2.736 84,677 26,178 59,549 21.419 16.333 6.923 5,071 109.295 27.524 7.389 34.913 4,177 30,736 11896 26.018 18.461 9.551 1.602 127.626 34.231 5,394 39.625 5.282 34.343 1,015 27.193 14.531 12,662 $ $ Google is part of Alphabet, but we loosely refer to Alphabet as "Google" because of its global familiarity and because Google provides 99% of Alphabet's $161,857 billion in revenues. See accompanying notes. Google Inc. (Alphabet Inc.)" CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) 2017 12,662 2018 30,736 2019 34 343 $ S S 1,543 (781) (119) 307 105 Year Ended December 31 Net income Other comprehensive income (loss): Change in foreign currency translation adjustment Available-for-sale investments: Change in net unrealized gains (losses) Less: reclassification adjustment for net (gains) losses included in net income Net change (net of tax effect of $0, $156, and $221) Cash flow hedges: Change in net unrealized gains (losses) Less: reclassification adjustment for net (gains) losses included in net income Net change (net of tax effect of $247. $103, and $42) Other comprehensive income (loss) Comprehensive income 88 (911) (823) 1,611 (111) 1,500 412 (638) 93 290 98 22 (299) (277) (545) 1,410 14,072 388 (1,216) 29,520 1,104 $ S s 35,447 "Google is part of Alphabet, but we loosely refer to Alphabet as "Google" because of its global familiarity and because Google provides 99% of Alphabet's $161.857 billion in revenues. See accompanying notes. Appendix A Fan Statement information A-11 (315) 722 Google Inc. (Alphabet Inc.)" CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (In millions, except share amounts which are reflected in thousands) Class A and Class B Common Stock, Class C Accumulated Capital Stock and Other To Additional Paid-In Capital Comprehensive Retained Stockholders Shares Amount Income Los) Earnings Raily Balance as of December 31, 2016 691.293 $ 36,307 $ 12.402) 5 105.1315 Cumulative effect of accounting change 0 (15) 015 Common and capital stock issued 8,652 212 0 0 212 Stock-based compensation expense 0 7.694 0 Tax withholding related to vesting of restricted stock units 0 (4.373) (4373) Repurchases of capital stock (5.162) 0 (4 531) Sale of interest in consolidated entities 0 722 0 Net income 0 0 12.662 12.662 Other comprehensive income 0 0 1.410 Balance as of December 31. 2017 694.783 40.247 1992) 113.247 152 502 Cumulative effect of accounting change 0 0 (98) (599) Common and capital stock issued 8.975 148 0 0 148 Stock-based compensation expense 0 9.353 0 0 9.353 Tax withholding related to vesting of restricted stock units and other 0 (4.782) 0 Repurchases of capital stock (8.202) (576 0 8.499) 19.075 Sale of interest in consolidated entities 0 659 0 659 Net income 0 0 0 30.736 30.736 0 0 Other comprehensive loss (1.216 0 (1.216) Balance as of December 31, 2018 695.556 45.049 12.306 134 885 177.628 Cumulative effect of accounting change 0 0 Common and capital stock issued 8.120 202 0 202 Stock-based compensation expense 0 10.890 10990 Tax withholding related to vesting of restricted stock units and other 0 (4.455 0 0 (15.341) (1.294) O (17.102) Repurchases of capital stock (18.396 Sale of interest in consolidated entities 0 160 0 160 Net income 0 0 0 34343 0 0 Other comprehensive income (loss) 1.104 0 1.104 Balance as of December 31, 2019 688 335 S 50.5525 (1.232) 5 152.1225 201.42 (30) C C IUUJ "Google is part of Alphabet, but we loosely refer to Alphabet as "Google" because of its global familiarity and because Google provides 99% of Alphabet's $161.857 billion in revenues See accompanying notes Google Inc. (Alphabet Inc.)" CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) 2017 2018 2019 12,662 $ 30,736 34.343 6.103 812 7.679 258 37 294 8.164 871 9.353 778 (6.650) (189) 10,856 925 10,794 173 (2,798) (592) (3.768) 8,211 (2,164) 731 4,891 955 390 37.091 (2.169) (2,251) (1.207) 1,067 8,614 483 371 47.971 (4,340) (3.128) (621) 428 7.170 1.273 37 54,520 Year Ended December 31 Operating activities Net income Adjustments Depreciation and impairment of property and equipment Amortization and impairment of intangible assets Stock-based compensation expense Deferred income taxes (Gain) loss on debt and equity securities, net Other Changes in assets and liabilities, net of effects of acquisitions: Accounts receivable Income taxes, net Other assets Accounts payable Accrued expenses and other liabilities Accrued revenue share Deferred revenue Net cash provided by operating activities Investing activities Purchases of property and equipment Purchases of marketable securities Maturities and sales of marketable securities Purchases of non-marketable investments Maturities and sales of non-marketable investments Acquisitions, net of cash acquired, and purchases of intangible assets Proceeds from collection of notes receivable Other investing activities Net cash used in investing activities Financing activities Net payments related to stock-based award activities Repurchases of capital stock Proceeds from issuance of debt, net of costs Repayments of debt Proceeds from sale of interest in consolidated entities Net cash used in financing activities Effect of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period (13.184) (92,195) 73.959 (1.745) 533 (287) (25.139) (50,158) 48,507 (2,073) 1.752 (1,491) 0 (23.548) (100.315) 97.825 (1.932) 405 (2.515) 0 1,419 99 (31,401) 98 (28.504) 589 (29.491) (4.166) (4,846 4.291 (4,377) 800 (4.993) (9.075) 6,766 (6.827) 950 (13,179 (302) 5.986 10,715 16,701 (4,765) (18.396) 317 (585) 220 (23,209) (23) 1.797 16,701 18.498 (8,298) 405 (2.203) 12,918 10,715 $ $ S S Supplemental disclosures of cash flow information Cash paid for taxes, net of refunds 6,191 $ 5,671 S 8.203 "Google is part of Alphabet, but we loosely refer to Alphabet as "Google" because of its global familiarity and because Google provides 99% of Alphabet's $161,857 billion in revenues. See accompanying notes. CONSOLIDATED STATEMENTS OF FINANCIAL POSITION December 31, 2019 December 31, 2018 In thousands of US dollars Assets Current assets Cash and cash equivalents Short-term financial instruments Short-term financial assets at amortized cost Short-term financial assets at fair value through profit or loss Trade receivables Non-trade receivables Advance payments Prepaid expenses Inventories Other current assets Total current assets Non-current assets Financial assets at amortized cost Financial assets at fair value through other comprehensive income Financial assets at fair value through profit or loss Investment in associates and joint ventures Property, plant and equipment Intangible assets Net defined benefit assets Deferred income tax assets Other non-current assets Total assets $ 23,069,002 65,426,571 3,358,516 1.482,192 30,143,757 3,585,812 1,224,266 2,064.610 22,966,437 2,312,887 155,634,050 $ 26,033.073 56,538,875 2,319,851 1.717,732 29.059.541 2,643,362 1.168,472 3.548.957 24.869.754 1.996,067 149,895,684 7,654,241 900.077 6,513,833 102,813,888 17.764,234 506,094 3,865,469 6.859.137 $302,511,023 204.476 6,264.780 665,340 6,274.952 99,031,047 12.777,442 482,518 4,691,711 10,890.850 $291,178,800 Liabilities and Equity Current liabilities Trade payables $ 7,480,499 $ 7.276,025 Short-term borrowings 12.350,032 11,657.766 Other payables 10.298,520 9.190,823 Advances received 919,862 703.812 Withholdings 769,958 816,205 Accrued expenses 16,611.144 17.452,068 Current income tax liabilities 1.190.751 7.482,067 Current portion of long-term liabilities 725,971 28.646 Provisions 3,491,005 3,761.637 Other current liabilities 889.802 904.980 Total current liabilities 54,727,544 59,274,029 Non-current liabilities Debentures 836,835 825,401 Long-term borrowings 1,885,248 73.006 Long-term other payables 1.874,152 2.740,586 Net defined benefit liabilities 403,944 432.502 Deferred income tax liabilities 14,632,684 13,009,904 Long-term provisions 524,342 569.405 Other non-current liabilities 2.066,906 1.674,233 Total liabilities 76,951,655 78,599,066 Equity attributable to owners of the parent company Preference shares 102,506 102,506 Ordinary shares 667,588 667,588 Share premium 3,778,674 3,778,674 Retained earnings 218,439,838 208,243,059 Other components of equity (4.263,406) (6,805,356) 218,725,200 205,986,471 Non-controlling interests 6,834,168 6.593.263 Total equity 225,559,368 212,579,734 Total liabilities and equity $302,511,023 $291,178,800 The above consolidated statement of financial position should be read in conjunction with the accompanying notes Samsung Electronics Co., Ltd. and Subsidiaries CONSOLIDATED STATEMENTS OF PROFIT OR LOSS 2019 2018 For the year ended levember to that whers Nemente Cast of cales Grows prole Selling and administrative expenses Operating profit Other non operating income Other non operating expense Share of neprofit of associates and joint ventures Financial income Financial expense Profit before income tax Income tax expense Profit for the year $197.690,01 126,135,995 71,184,9:43 47,528,721 23.826,222 1.526,149 1.213,861 354,332 8,218,988 7,100,000 26.111,740 7.459,135 $ 18,652,605 $200 161.262 TS08.117 99,564,845 15.03.208 50,526.847 1.274,207 979,886 16.3.203 8,579,720 7.386,694 52,477,097 14.427.866 $ 38,049,231 $ 18,451.988 $ 200.617 $ 37.659,703 $ 389,528 Profit attributable to owners of the parent company Profit attributable to non-controlling interests $ $ Earnings per share (in US dollars) Basic Diluted 2.72 2.72 5.54 5.54 The above consolidated statement of financial position should be read in conjunction with the accompanying notes. Samsung Electronics Co., Ltd. and Subsidiaries CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 2019 2018 $18,652,605 $38,049,231 983.817 (202,380) For the year ended December 31 In thousands of US dollars Profit for the year Other comprehensive income (loss) Items that will not be reclassified to profit or loss subsequently: Gain (loss) on valuation of financial assets at fair value through other comprehensive income, net of tax Share of other comprehensive loss of associates and joint ventures, net of tax Remeasurement of net defined benefit liabilities (assets), net of tax Items that may be reclassified to profit or loss subsequently: Share of other comprehensive income of associates and joint ventures, net of tax Foreign currency translation, net of tax Gain on valuation of cash flow hedge derivatives Other comprehensive income (loss) for the year, net of tax Total comprehensive income for the year (14,497) (1,012,877) (9.122) (351.922) 41,742 2,588,248 1,553 2,587,986 $21,240,591 5.739 506,786 40,395 (10,504) $38,038,727 Comprehensive income attributable to: Owners of the parent company Non-controlling interests $20.993,415 $ 247.176 $37,652,192 S 386,235 The above consolidated statement of financial position should be read in conjunction with the accompanying notes Samsung Electronics Co., Ltd. and Subsidiaries CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (in thousands of US dollars) Preference shares Equity attributable Other to crwners Non- Ordinary Share Retained components of the parent controlling shares premium earnings of equity company interests 667,588 $3,778,674 $185,172,550 $(11,925,927) $177,795,391 $6,244.755 Total $184,0-40,146 102,506 211.529 (224.576) (13,047) (13.047) 102,506 667,588 3,778,674 (12,150,503) 185,384,079 37.659,703 177,782,344 37,659,703 6,244,755 389.528 184,027.099 38.049.231 - (2.581) (202,789) (205.370) (202_380) 2.990 80 - (3.463) 497,023 (3.463) 497,023 (3.383) 506,786 9,763 Balance as of January 1, 2018 Cumulative effect of changes in accounting policies Restated total equity at the beginning of the financial year Profit for the year Gain (loss) on valuation of financial assets at fair value through other comprehensive income, net of tax Share of other comprehensive income (loss) of associates and joint ventures, net of tax Foreign currency translation, net of tax Remeasurement of net defined benefit liabilities (assets), net of tax Gain on valuation of cash flow hedge derivatives Total comprehensive income (loss) Dividends Capital transaction under common control Changes in consolidated entities Acquisition of treasury shares Retirement of treasury shares Other (335.796) - (335.796) (16,126) (351.922) 40.395 40.395 40.395 (4,630) 37.657,122 (8.703,297) 37,652,492 (8,703,297) 1,474 386,235 (43,465) 6,856 38,038,727 (8.746.762) 8,330 1.474 35 35 (750.872) (750.872) (6,094.845) (750.872) 6,094.845 4.330 4.330 (1.153) 3.177 (14,798,142) 5,349,777 (9,486,092) 102,506 102,506 667,588 667,588 3,778,674 3,778,674 208,243,059 208,243,059 18,451,988 (6,805,356) (6,805,356) (9,448,365) 205,986,471 205,986,471 18,451.988 (37,727) 6,593,263 6,593,263 200.617 212,579,734 212.579,734 18.652,605 (1.085) 953,498 952,413 31.404 983,817 Total transactions with owners Balance as of December 31, 2018 Balance as of January 1, 2019 Profit for the year Gain (loss) on valuation of financial assets at fair value through other comprehensive income, net of tax Share of other comprehensive income (loss) of associates and joint ventures, net of tax Foreign currency translation, net of tax Remeasurement of net defined benefit liabilities (assets), net of tax Gain on valuation of cash flow hedge derivatives (522) 1 1 1 1 27.009 2.545.753 26.487 2.545,753 758 42.495 27.245 2.588.248 (984.779) (984.779) (28.098) (1.012.877) 1,553 1,553 1.553 IIIIIIIIII 18,450.381 (8,253,602) Total comprehensive income Dividends Capital transaction under common control Changes in consolidated entities Other 2,543,034 20,993,415 247,176 (8,253,602) (18,327) (73) (73) 6,312 4.917 (1.011) (1.011) 827 (1,084) (8,254,686) (6,270 $(4,263,406) $218,725,200 $6,834,168 21.240.591 (8.271.929) 6,239 4.917 (184) (8.260,957) Total transactions with owners (8,253,602) 667,588 $3,778,674 $218,439,838 $225,559,368 Balance as of December 31, 2019 102,506 The above consolidated statement of financial position should be read in conjunction with the accompanying notes. Samsung Electronics Co., Ltd. and Subsidiaries CONSOLIDATED STATEMENTS OF CASH FLOWS For the year ended December 31 2019 2018 in thousands of US dollars Cash flows from operating activities Profit for the year $18.652605 $38.049.231 Adjustments 32.126.956 37414.045 Changes in assets and liabilities arising from operating activities (2.184.336) (8,515 406) Cash generated from operations 48,595.225 66.947.870 Interest received 1.978.962 1.534,604 Interest paid (497.640) (470,434) Dividends received 207473 185.328 Income tax paid (11.344.104) (10.681 998) Net cash inflow from operating activities 38,939,916 57,515,370 Cash flows from investing activities Net increase in short-term financial instrume (1.742,585) (10.612,375) Net increase in short-term financial assets at amortized cost (701,945) (1.232.856) Net decrease increase) in short-term financial assets at fair value through profit or loss 321.746 (119.839) Disposal of long-term financial instruments 3.935.450 219.527 Acquisition of long-term financial instruments (10,918,835) (6.588,518) Disposal of financial assets at amortized cost 595.974 Acquisition of financial assets at amortized cost (707.898) (136.183) Disposal of financial assets at fair value through other comprehensive income 1.351 13.910 Acquisition of financial assets at fair value through other comprehensive income (54.719) (391.377 Disposal of financial assets at fair value through profit or loss 55.189 68.761 Acquisition of financial assets at fair value through profit or loss (116,543) (166.327 Disposal of investment in associates and joint ventures 10,424 127 Acquisition of investment in associates and joint ventures (10.964) (43.953) Disposal of property, plant and equipment 440.397 477.900 Acquisition of property, plant and equipment (21.766,303) (25.360.292) Disposal of intangible assets 6,213 10,241 Acquisition of intangible assets (2.788.525) (875,635) Cash outflow from business combinations (874.680) (85,038) Cash inflow (outflow) from other investing activities 39,512 (1.965) Net cash outflow from investing activities (34,276,741) (44,823,892) Cash flows from financing activities Net increase (decrease) in short-term borrowings 742,876 (1.755.933) Acquisition of treasury shares (750.872) Proceeds from long-term borrowings 3,072 Repayment of debentures and long-term borrowings (608,687) (1,704,560) Dividends paid (8,270,727) (8,746,499) Net increase (decrease) in non-controlling interests (1,459) 6.924 Net cash outflow from financing activities (8.137,997) (12.947,868) Effect of exchange rate changes on cash and cash equivalents 510,751 80.816 Net decrease in cash and cash equivalents (2,964,071) (175,574) Cash and cash equivalents Beginning of the year 26,033,073 26,208,647 End of the year $23,069,002 $26,033,073 The above consolidated statements of cash flows should be read in conjunction with the accompanying notes -S Required 1 Required 2 Required 3 Required 5 Required 4 Identify the total amount of cash and cash equivalents for fiscal years ended (a) September 28, 2019, and (b) September answers in millions.) $ in millions a. September 28, 2019 b. September 29, 2018 65% 11:32 Etomheducation.com Saved Help vork Chapter 6 Save & Exit Submit Check my work 6 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Compute cash and cash equivalents as a percent of total current assets, total current liabilities, total shareholders' equit both 2019 and 2018. (Round percentage values to 1 decimal place.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Compute the days' sales uncollected as of (a) September 28, 2019, and (b) September 29, 2018. (Assume there are 365 your answers to 1 decimal place.) Days' Sales Uncollected a. September 28, 2019 b. September 29, 2018 days days