The financial statements of Apple Inc. are presented in Appendix A. Instructions for accessing and using the company’s complete annual report, including the notes to the financial statements, are also provided in Appendix A.

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 28, 2013? 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 28, 2013?