Refer to Apple's financial statements in Appendix A to answer the following.

1. What is the amount of Apple's accounts receivable as of September 27, 2014?

2. Compute Apple's accounts receivable turnover as of September 27, 2014.

3. How long does it take, on average, for the company to collect receivables?

4. Apple's most liquid assets include (a) cash and cash equivalents, (b) short-term marketable securities, (c) receivables, and (d) inventory. Compute the percentage that these liquid assets make up of current liabilities as of September 27, 2014. Do the same computations for September 28, 2013. Comment on the company's ability to satisfy its current liabilities as of its fiscal 2014 year-end compared to its fiscal 2013 year-end.

5. What criteria did Apple use to classify items as cash equivalents? (Hint: Refer to Apple's footnotes describing cash equivalents in Appendix A.) Fast Forward

Apple's financial statements from Appendix A:

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Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 28, 2013 September 27, 2014 ASSETS: Current assets: 13,844 24 Cash and cash equivalents Short-term marketable securities 14,259 11,233 26,287 Accounts receivable, less allowances of $86 and $99, respectively Inventories 17,460 2,111 13,102 1,764 3,453 Deferred tax assets 4,318 9,759 Vendor non-trade receivables 7,539 Other current assets 9,806 6,882 73,286 Total current assets 68,531 Long-term marketable securities Property, plant and equipment, net Goodwill Acquired intangible assets, net 130,162 106,215 20,624 16,597 4,616 1,577 4,142 4,179 Other assets 3,764 231,839 5,146 207,000 Total assets LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities: Accounts payable Accrued expenses Deferred revenue Commercial paper Total current liabilities 2$ 30,196 22,367 18,453 13,856 8,491 7,435 6,308 63,448 43,658 Deferred revenue – non-current 3,031 2,625 Long-term debt 28,987 16,960 Other non-current liabilities 24,826 20,208 Total liabilities 120,292 83,451 Commitments and contingencies Shareholders' equity: Common stock and additional paid-in capital, $0.00001 par value; 12,600,000 shares authorized; 5,866,161 and 6,294,494 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income/(loss) Total shareholders' equity Total liabilities and shareholders' equity 23,313 19,764 104,256 (471) 123,549 87,152 1,082 111,547 231,839 207,000