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

1. What percent of the original cost of Apple's property and equipment remains to be depreciated as of September 27, 2014, and September 28, 2013? Assume these assets have no salvage value.

2. Over what length(s) of time is Apple depreciating its major categories of property and equipment?

3. What is the change in total property, plant, and equipment (before accumulated depreciation) for the year ended September 27, 2014? What is the amount of cash provided (used) by investing activities for property and equipment for the year ended September 27, 2014? What is one possible explanation for the difference between these two amounts?

4. Compute Apple's total asset turnover for the year ended September 27, 2014, and the year ended

September 28, 2013. Assume total assets at September 29, 2012, are $176,064 ($ millions).

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financial statements of Apple from Appendix A Below:

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Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 27, 2014 September 28, 2013 ASSETS: Current assets: Cash and cash equivalents Short-term marketable securities Accounts receivable, less allowances of $86 and $99, respectively Inventories 24 13,844 14,259 11,233 26,287 13,102 1,764 17,460 2,111 Deferred tax assets 4,318 3,453 Vendor non-trade receivables 9,759 7,539 Other current assets 9,806 6,882 68,531 130,162 Total current assets 73,286 Long-term marketable securities Property, plant and equipment, net Goodwill 106,215 20,624 16,597 4,616 1,577 Acquired intangible assets, net 4,142 4,179 5,146 Other assets 3,764 Total assets 231,839 207,000 LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities: %24 Accounts payable Accrued expenses 30,196 22,367 13,856 18,453 Deferred revenue 8,491 7,435 Commercial paper 6,308 Total current liabilities 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 83,451 Total liabilities 120,292 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 87,152 104,256 1,082 (471) 123,549 111,547 231,839 207,000