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ins Refer to Apple's financial statements in Appendix A to answer the following Required 1. Assume that the amounts reported for inventories and cost of sales reflect items purchased in a form ready for resale. Compute the net cost of goods purchased for the year ended September 28, 2019. 2. Compute the current ratio and acid-test ratio as of September 28, 2019, and September 29, 2018 3. Does Apple's 2019 current ratio outperform or underperform the assumed) Industry average of 1.5? 4. Does Apple's 2019 acid-test ratio outperform or underperform the (assumed) industry average of 10? ON Bruces Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required Required 4 Compute the current ratio and acid test rooms of September 25, 2010, and September 29, 2018. (Enter your answers in millions of dollars.) 2010 2018 Current Ratio Acid-Test Ratio Current Ratio Acid-Test Ratio millions Currents Cash and equivalent Marketable securities (un) Accounts receivables.net Inventores.net Vendor non-traderecs Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the current ratio and acid-test ratio as of September 28, 2019, and September 29, 2018. (Enter your answers in millions of dollars.) ces $ millions Current Ratio 2019 Acid-Test Ratio Current Ratio 2018 Acid-Test Ratio Current assets Cash and equivalents Marketable securities (current) Accounts receivables, not Inventories, net Vendor non-trade receivables Other current assets Tot current assets Total quick assets Total current liabilities Rabo $ 0 0 $ O 0 0 0 0 0 Prev 1 of 1 Naye APPI 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 Cet acts Cash and cash equivalents 48,844 Marketable securities 51.713 Accounts receivable, et 22,926 Investories 4,105 Vendor non trade receivables 22.87 Other current is 12.152 Total care 162,819 Non-cuneta Marketable securities 103,341 Property, plant and en 37,374 Other concorrente 32.978 Total curs 175,692 Total 338316 25.913 40,38 23,186 3,956 25,809 12.087 131.339 170.799 41.304 22.283 214386 563.725 4636 97.720 5322 5,90 10240 104.71 355 33.27 5. 11.95 115.929 LIABILITIES AND SHAREHOLDERS' EQUITY Current sites Accounts payable Other current Delov Centrale Terme Tailure tamiltales Nincs Terme Oruc Tal Tulis Comm.com Shabudes Cena pada 12.000.000 40.36 4.254.946 handly andmine And the competences) Tud T 91,79 5107 $0.10) 142310 34021 169 25.5 45.174 40,201 70.400 049 10/14 APPLE September 30, 2017 196,534 32,700 229,234 126,337 14,711 141048 88,186 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 161782 163,756 Gross margin 98.392 101,819 Operating expenses Research and development 16,217 14216 Selling, general and administrative 18,245 16,705 Total operating expenses 34462 30.941 Operating income 63,930 20,898 Ole income (expense), bet 1.807 2.005 Income before provision for income taxe 65.737 72.903 Prevision for income 10481 13,372 Net income 35,256 59,331 Kartings per share 1197 12.01 Diluted 1189 1191 Shute din computing carins persone Basic 4,617834 4.955.377 Diluted 464913 5.000,109 See accompanying Notes to Consolidated Financial Statementa 11,581 15.261 26842 61.344 2,745 61,089 15,738 1151 9.27 9.21 5.217.242 5.251.692 Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) Years ended September 28, 2019 September 29, 2018 September 30, 2017 Net income $ 55.256 $ 59.531 5 48,351 Other comprehensive income (loss): Change in foreign currency translation, net of tax (408) (525) 224 Change in unrealized gainoses on derivative Instruments, pet ofta Change in fair value of derivatives (661) 523 11315 Adjustment for net (gaine) Jones realized and included in net income 222 382 27 Total elunge in unrealized gain losses on derivative instruments (638) 905 (162) Change in unrealized inosses on marketable securities, net of tax Change in fair value of marketable securities 3.802 (3.407) (782) Adjustment for net (g) losses realized and included in net income 25 Total change in unrealized guin losses on marketable securities 3,827 (3.406) (846) Total other comprehensive income (oss) 2.781 (3.026 (784) Total comprehensive income s 58,037 S 36.305$ 1425672 See accompanying Notes to Consolidated Financial Statement September 30, 2017 128.249 31,251 555 (1,468) 4.909 620 35,867 Apple Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In millions) Years ended September 28, 2019 September 29, 2018 Total sharcholders' 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 (2002) (1.778) Share-based compensation 6,194 $.443 Tax benefit from equity awards, including transfer pricing adjustments Ending balances 45.174 40,201 Retained carings Beginning balances 70,400 98,330 Net income 35,256 59.531 Dividends and dividend equivalents declared (14,129) (13.235) Common stock withheld related to net share settlement of equity awards (1.029 1948) Common Mock repurchased (67.101) (73,056) Cumulative effects of changes in accounting principles 2.501 278 Ending balances 45,898 20400 Accumulated other comprehensive income (om) Beginning balances 0.454) (150) Other comprehensive income (los) 2.781 (3,026 Cumulative effects of changes in accounting principles 89 (278) Ending balances (584) 13.454) Total Shareholder equity, ending balances $ 9048 107147 96,364 48,331 (12803) (581) (33,001) 98 130 64 (784 (150) 134,017 See accompanying Notes to Consolidated racial Statements APPLE September 30, 2017 $ 20484 48,351 10.157 4,840 5.966 (166) Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) Years coded September 28, 2019 September 29, 2018 Cash, cash equivalents and restricted cash, beginning balances $ 25,913 5 20.289 Operating activities Net income 55.256 59.531 Adjustments to reconcile act income to cash generated by 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) 828 Vendor non-trade receivables 2931 (8,010) Other current and non-current assets 873 (423) Accounts payable (1.923) 9.175 Deferred revenue (625) (3) Other current and non-current liabilities 14.200) 38,449 Cash generated by operating activities 69.191 77434 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) (720 Purchases of non-marketable securities (1.001) 11.871) Proceeds from non marketable securities 1614 153 Other (1.028) (745) Cashiered by used in investing activities 45,896 16.066 12.093) (2.723) (4.254 (5318) 8966 (593) 1092 64.225 (159.486) 31,775 94 564 (12.451) (329) (521) 126 (124 (1646) (71,356) 55,881 47,838 (13,313) (721) (1.870 353 (745) 16,066 (159,486) 31,775 94,564 (12.451) (329) (521 126 (124) (46 446) Cernea by peg IVILICE 09 Investing activities Purchases of marketable securities (39,630) Proceeds from maturities of marketable securities 40,102 Proceeds from sales of marketable securities 56,988 Payments for acquisition of property, plant and equipment (10,495) Payments made in connection with business acquisitions, net (624) Purchases of non-marketable securities (1.001) Proceeds from non-marketable securities 1.634 Other (1.078) Cash generated by used in investing activities 45.896 Financing activities Proceeds from stance of common stock 781 Payments for taxes related to netsbare settlement of equity wwards (2.817) Payments for dividends and dividend equivalents (14,119) Repurchases of common stock (66,897) Proceeds from issuance of term debt. 6.963 Repayments of term debt (8.805) Proceeds from (Repayments of commercial paper, net (5.977) Other (105) Cash used in financing activities (90,976) Increase (decrease in cash, cash equivalents and restricted cash 24.311 Cub. cash equivalents and restricted cash, trading balances 50224 Supplemental cash flow disclosure Cash paid for income taxes, 15.263 5 Cash paid for interest 3423 5 See accompanying Notes to Consolidated Financial Statements 669 (2.527) (13,712) (72,738) 6.969 555 (1.874 (12.769) (32.900) 28.662 (3.500) 3.82 16 500) (37) (87.876) 5,624 25.913 (17,974) (195) 20,29 $ 10.417 3.022 1591 2092 ins Refer to Apple's financial statements in Appendix A to answer the following Required 1. Assume that the amounts reported for inventories and cost of sales reflect items purchased in a form ready for resale. Compute the net cost of goods purchased for the year ended September 28, 2019. 2. Compute the current ratio and acid-test ratio as of September 28, 2019, and September 29, 2018 3. Does Apple's 2019 current ratio outperform or underperform the assumed) Industry average of 1.5? 4. Does Apple's 2019 acid-test ratio outperform or underperform the (assumed) industry average of 10? ON Bruces Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required Required 4 Compute the current ratio and acid test rooms of September 25, 2010, and September 29, 2018. (Enter your answers in millions of dollars.) 2010 2018 Current Ratio Acid-Test Ratio Current Ratio Acid-Test Ratio millions Currents Cash and equivalent Marketable securities (un) Accounts receivables.net Inventores.net Vendor non-traderecs Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the current ratio and acid-test ratio as of September 28, 2019, and September 29, 2018. (Enter your answers in millions of dollars.) ces $ millions Current Ratio 2019 Acid-Test Ratio Current Ratio 2018 Acid-Test Ratio Current assets Cash and equivalents Marketable securities (current) Accounts receivables, not Inventories, net Vendor non-trade receivables Other current assets Tot current assets Total quick assets Total current liabilities Rabo $ 0 0 $ O 0 0 0 0 0 Prev 1 of 1 Naye APPI 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 Cet acts Cash and cash equivalents 48,844 Marketable securities 51.713 Accounts receivable, et 22,926 Investories 4,105 Vendor non trade receivables 22.87 Other current is 12.152 Total care 162,819 Non-cuneta Marketable securities 103,341 Property, plant and en 37,374 Other concorrente 32.978 Total curs 175,692 Total 338316 25.913 40,38 23,186 3,956 25,809 12.087 131.339 170.799 41.304 22.283 214386 563.725 4636 97.720 5322 5,90 10240 104.71 355 33.27 5. 11.95 115.929 LIABILITIES AND SHAREHOLDERS' EQUITY Current sites Accounts payable Other current Delov Centrale Terme Tailure tamiltales Nincs Terme Oruc Tal Tulis Comm.com Shabudes Cena pada 12.000.000 40.36 4.254.946 handly andmine And the competences) Tud T 91,79 5107 $0.10) 142310 34021 169 25.5 45.174 40,201 70.400 049 10/14 APPLE September 30, 2017 196,534 32,700 229,234 126,337 14,711 141048 88,186 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 161782 163,756 Gross margin 98.392 101,819 Operating expenses Research and development 16,217 14216 Selling, general and administrative 18,245 16,705 Total operating expenses 34462 30.941 Operating income 63,930 20,898 Ole income (expense), bet 1.807 2.005 Income before provision for income taxe 65.737 72.903 Prevision for income 10481 13,372 Net income 35,256 59,331 Kartings per share 1197 12.01 Diluted 1189 1191 Shute din computing carins persone Basic 4,617834 4.955.377 Diluted 464913 5.000,109 See accompanying Notes to Consolidated Financial Statementa 11,581 15.261 26842 61.344 2,745 61,089 15,738 1151 9.27 9.21 5.217.242 5.251.692 Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) Years ended September 28, 2019 September 29, 2018 September 30, 2017 Net income $ 55.256 $ 59.531 5 48,351 Other comprehensive income (loss): Change in foreign currency translation, net of tax (408) (525) 224 Change in unrealized gainoses on derivative Instruments, pet ofta Change in fair value of derivatives (661) 523 11315 Adjustment for net (gaine) Jones realized and included in net income 222 382 27 Total elunge in unrealized gain losses on derivative instruments (638) 905 (162) Change in unrealized inosses on marketable securities, net of tax Change in fair value of marketable securities 3.802 (3.407) (782) Adjustment for net (g) losses realized and included in net income 25 Total change in unrealized guin losses on marketable securities 3,827 (3.406) (846) Total other comprehensive income (oss) 2.781 (3.026 (784) Total comprehensive income s 58,037 S 36.305$ 1425672 See accompanying Notes to Consolidated Financial Statement September 30, 2017 128.249 31,251 555 (1,468) 4.909 620 35,867 Apple Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In millions) Years ended September 28, 2019 September 29, 2018 Total sharcholders' 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 (2002) (1.778) Share-based compensation 6,194 $.443 Tax benefit from equity awards, including transfer pricing adjustments Ending balances 45.174 40,201 Retained carings Beginning balances 70,400 98,330 Net income 35,256 59.531 Dividends and dividend equivalents declared (14,129) (13.235) Common stock withheld related to net share settlement of equity awards (1.029 1948) Common Mock repurchased (67.101) (73,056) Cumulative effects of changes in accounting principles 2.501 278 Ending balances 45,898 20400 Accumulated other comprehensive income (om) Beginning balances 0.454) (150) Other comprehensive income (los) 2.781 (3,026 Cumulative effects of changes in accounting principles 89 (278) Ending balances (584) 13.454) Total Shareholder equity, ending balances $ 9048 107147 96,364 48,331 (12803) (581) (33,001) 98 130 64 (784 (150) 134,017 See accompanying Notes to Consolidated racial Statements APPLE September 30, 2017 $ 20484 48,351 10.157 4,840 5.966 (166) Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) Years coded September 28, 2019 September 29, 2018 Cash, cash equivalents and restricted cash, beginning balances $ 25,913 5 20.289 Operating activities Net income 55.256 59.531 Adjustments to reconcile act income to cash generated by 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) 828 Vendor non-trade receivables 2931 (8,010) Other current and non-current assets 873 (423) Accounts payable (1.923) 9.175 Deferred revenue (625) (3) Other current and non-current liabilities 14.200) 38,449 Cash generated by operating activities 69.191 77434 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) (720 Purchases of non-marketable securities (1.001) 11.871) Proceeds from non marketable securities 1614 153 Other (1.028) (745) Cashiered by used in investing activities 45,896 16.066 12.093) (2.723) (4.254 (5318) 8966 (593) 1092 64.225 (159.486) 31,775 94 564 (12.451) (329) (521) 126 (124 (1646) (71,356) 55,881 47,838 (13,313) (721) (1.870 353 (745) 16,066 (159,486) 31,775 94,564 (12.451) (329) (521 126 (124) (46 446) Cernea by peg IVILICE 09 Investing activities Purchases of marketable securities (39,630) Proceeds from maturities of marketable securities 40,102 Proceeds from sales of marketable securities 56,988 Payments for acquisition of property, plant and equipment (10,495) Payments made in connection with business acquisitions, net (624) Purchases of non-marketable securities (1.001) Proceeds from non-marketable securities 1.634 Other (1.078) Cash generated by used in investing activities 45.896 Financing activities Proceeds from stance of common stock 781 Payments for taxes related to netsbare settlement of equity wwards (2.817) Payments for dividends and dividend equivalents (14,119) Repurchases of common stock (66,897) Proceeds from issuance of term debt. 6.963 Repayments of term debt (8.805) Proceeds from (Repayments of commercial paper, net (5.977) Other (105) Cash used in financing activities (90,976) Increase (decrease in cash, cash equivalents and restricted cash 24.311 Cub. cash equivalents and restricted cash, trading balances 50224 Supplemental cash flow disclosure Cash paid for income taxes, 15.263 5 Cash paid for interest 3423 5 See accompanying Notes to Consolidated Financial Statements 669 (2.527) (13,712) (72,738) 6.969 555 (1.874 (12.769) (32.900) 28.662 (3.500) 3.82 16 500) (37) (87.876) 5,624 25.913 (17,974) (195) 20,29 $ 10.417 3.022 1591 2092

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