The financial statements of Apple are presented in Appendix D. The complete annual report, including the notes to the fi nancial statements, is available at the company’s website.

Instructions

Refer to Apple’s financial statements and answer the following questions about current and contingent liabilities and payroll costs.

a. What were Apple’s total current liabilities at September 24, 2016? What was the increase/decrease in Apple’s total current liabilities from the prior year?

b. In Apple’s Note 10, the company explains the nature of its contingencies. Under what conditions does Apple recognize (record and report) liabilities for contingencies?

c. What were the components of total current liabilities on September 24, 2016?