Refer to Apple's financial statements in Appendix A to answer the following.
1. Is Apple's statement of cash flows prepared under the direct method or the indirect method? How do you know?
2. For each fiscal year 2012, 2011, and 2010, is the amount of cash provided by operating activities more or less than the cash paid for dividends?
3. What is the largest amount in reconciling the difference between net income and cash flow from operating activities in fiscal 2012? In fiscal 2011? In fiscal 2010?
4. Identify the largest cash inflow and cash outflow for investing and for financing activities, in fiscal 2012 and in fiscal 2011. Fast Forward
5. Obtain Apple's financial statements for a fiscal year ending after September 29, 2012, from either its Website (Apple.com) or the SEC's database (www .sec.gov). Since September 29, 2012, what are Apple's largest cash outflows and cash inflows in the investing and in the financing sections of its statement of cash flows?