Your parents are considering investing in Apple Inc. common stock. They ask you, as an accounting expert, to make an analysis of the company for them. Financial statements of Apple are presented in Appendix A. The complete annual report, including the notes to its financial statements, is available at the companys website.

LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities: Accounts payable Other current liabilities Deferred revenue Commercial paper Term debt Total current liabilities Non-current liabilities: Deferred revenue Term debt Other non-current liabilities Total non-current liabilities Total liabilities $ 55,888 32,687 7,543 11,964 8,784 116,866 $ 44,242 30,551 7,548 11,977 6,496 100,814 2,797 93,735 45,180 2,836 97,207 40,415 140,458 241,272 141,712 258,578 Commitments and contingencies 40,201 Shareholders' equity: Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 4,754,986 and 5,126,201 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income/(loss) Total shareholders' equity Total liabilities and shareholders' equity 70,400 (3,454) 107,147 $365,725 35,867 98,330 (150) 134,047 $375,319 2015 2014 $ ta % % % $ ta $ 6 % % Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) September 29, 2018 $59,531 Years ended September 30, 2017 $48,351 September 24, 2016 $45,687 Net income Other comprehensive income/loss): Change in foreign currency translation, net of tax effects of $(1), $(77) and $8, respectively (525) 224 75 523 1,315 7. Change in unrealized gains/losses on derivative instruments: Change in fair value of derivatives, net of tax benefit/(expense) of $(149), $(478) and $(7), respectively Adjustment for net (gains)/losses realized and included in net income, net of tax expense/(benefit) of $(104), $475 and $131, respectively Total change in unrealized gains/losses on derivative instruments, net of 382 (1,477) (741) tax 905 (162) (734) (3,407) (782) Change in unrealized gains/losses on marketable securities: Change in fair value of marketable securities, net of tax benefit/(expense) of $1,156, $425 and $(863), respectively Adjustment for net (gains)/losses realized and included in net income, net of tax expense/(benefit) of $21, $35 and $(31), respectively Total change in unrealized gains/losses on marketable securities, net of tax 1,582 (64) (846) 56 1,638 (3,406) Total other comprehensive income/loss) Total comprehensive income (3,026) $56,505 (784) $47,567 979 $46,666 Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 29, 2018 ASSETS: September 30, 2017 $ 25,913 Current assets: Cash and cash equivalents Marketable securities Accounts receivable, net Inventories Vendor non-trade receivables Other current assets Total current assets 40,388 23,186 3,956 25,809 12,087 131,339 $ 20,289 53,892 17,874 4,855 17,799 13,936 128,645 Non-current assets: Marketable securities Property, plant and equipment, net Other non-current assets Total non-current assets Total assets 170,799 41,304 22,283 234,386 194,714 33,783 18,177 246,674 $375,319 $365,725 LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities: Accounts payable Other current liabilities Deferred revenue Commercial paper Term debt Total current liabilities Non-current liabilities: Deferred revenue Term debt Other non-current liabilities Total non-current liabilities Total liabilities $ 55,888 32,687 7,543 11,964 8,784 116,866 $ 44,242 30,551 7,548 11,977 6,496 100,814 2,797 93,735 45,180 2,836 97,207 40,415 140,458 241,272 141,712 258,578 Commitments and contingencies 40,201 Shareholders' equity: Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 4,754,986 and 5,126,201 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income/(loss) Total shareholders' equity Total liabilities and shareholders' equity 70,400 (3,454) 107,147 $365,725 35,867 98,330 (150) 134,047 $375,319 2015 2014 $ ta % % % $ ta $ 6 % % Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) September 29, 2018 $59,531 Years ended September 30, 2017 $48,351 September 24, 2016 $45,687 Net income Other comprehensive income/loss): Change in foreign currency translation, net of tax effects of $(1), $(77) and $8, respectively (525) 224 75 523 1,315 7. Change in unrealized gains/losses on derivative instruments: Change in fair value of derivatives, net of tax benefit/(expense) of $(149), $(478) and $(7), respectively Adjustment for net (gains)/losses realized and included in net income, net of tax expense/(benefit) of $(104), $475 and $131, respectively Total change in unrealized gains/losses on derivative instruments, net of 382 (1,477) (741) tax 905 (162) (734) (3,407) (782) Change in unrealized gains/losses on marketable securities: Change in fair value of marketable securities, net of tax benefit/(expense) of $1,156, $425 and $(863), respectively Adjustment for net (gains)/losses realized and included in net income, net of tax expense/(benefit) of $21, $35 and $(31), respectively Total change in unrealized gains/losses on marketable securities, net of tax 1,582 (64) (846) 56 1,638 (3,406) Total other comprehensive income/loss) Total comprehensive income (3,026) $56,505 (784) $47,567 979 $46,666 Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 29, 2018 ASSETS: September 30, 2017 $ 25,913 Current assets: Cash and cash equivalents Marketable securities Accounts receivable, net Inventories Vendor non-trade receivables Other current assets Total current assets 40,388 23,186 3,956 25,809 12,087 131,339 $ 20,289 53,892 17,874 4,855 17,799 13,936 128,645 Non-current assets: Marketable securities Property, plant and equipment, net Other non-current assets Total non-current assets Total assets 170,799 41,304 22,283 234,386 194,714 33,783 18,177 246,674 $375,319 $365,725