7. Conceptual Connection: Assuming 10% interest, how much interest expense did Apple incur due to its...

 

 

 

 

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7. Conceptual Connection: Assuming 10% interest, how much interest expense did Apple incur due to its deteriorating accounts receivable and inventory turnovers? Enter amount rounded to the nearest whole dollar. For example, 7,684,268.24 would be entered as 7,684,268. (Remember, the numbers are in millions)? CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD (S) shares in Thousands, $ in Millions Beginning Balances (in shares) at Sep. Total Common Stock and Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income/(Loss) 6,294,494 28, 2013 Beginning Balances at Sep. 28, 2013 $ 123,549 $ 19,764 $ 104,256 $ (471) Increase (Decrease) in Stockholders' Equity [Roll Forward] Net income 39,510 39,510 Other comprehensive income/(loss) Dividends and dividend equivalents declared 1,553 1,553 (11,215) $0 (11,215) Repurchase of common stock (in shares) (488,677) Repurchase of common stock (45,000) (45,000) Share-based compensation 2,863 $2,863 Common stock issued, net of shares withheld for employee taxes (in shares) 60,344 Common stock issued, net of shares withheld for employee taxes (448) $ (49) (399) Tax benefit from equity awards, including transfer pricing adjustments 735 $ 735 Ending Balances (in shares) at Sep. 27, 2014 5,866,161 Ending Balances at Sep. 27, 2014 111,547 $ 23,313 87,152 1,082 CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD (S) shares in Thousands, $ in Millions Beginning Balances (in shares) at Sep. Total Common Stock and Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income/(Loss) 6,294,494 28, 2013 Beginning Balances at Sep. 28, 2013 $ 123,549 $ 19,764 $ 104,256 $ (471) Increase (Decrease) in Stockholders' Equity [Roll Forward] Net income 39,510 39,510 Other comprehensive income/(loss) Dividends and dividend equivalents declared 1,553 1,553 (11,215) $0 (11,215) Repurchase of common stock (in shares) (488,677) Repurchase of common stock (45,000) (45,000) Share-based compensation 2,863 $2,863 Common stock issued, net of shares withheld for employee taxes (in shares) 60,344 Common stock issued, net of shares withheld for employee taxes (448) $ (49) (399) Tax benefit from equity awards, including transfer pricing adjustments 735 $ 735 Ending Balances (in shares) at Sep. 27, 2014 5,866,161 Ending Balances at Sep. 27, 2014 111,547 $ 23,313 87,152 1,082 CONSOLIDATED STATEMENTS OF 12 Months Ended COMPREHENSIVE INCOME - USD (S) $ in Millions Sep. 24, 2016 Sep. 26, 2015 Sep. 27, 2014 Statement of Comprehensive Income [Abstract] Net income $ 45,687 $ 53,394 $ 39,510 Other comprehensive income/(loss): Change in foreign currency translation, net of tax effects of $8, $201 and $50, respectively Change in unrealized gains/losses on derivative instruments: 75 (411) (137) Change in fair value of derivatives, net of tax benefit/(expense) of $(7), $(441) and S(297), respectively Adjustment for net (gains)/losses realized and included in net income, net of tax expense/(benefit) of $131, $630 and S(36), respectively 7 2,905 1,390 (741) (3,497) 149 Total change in unrealized gains/losses on derivative instruments, net of tax (734) (592) 1,539 Change in unrealized gains/losses on marketable securities: Change in fair value of marketable securities, net of tax benefit/(expense) of S(863), $264 and $(153), respectively 1,582 (483) 285 Adjustment for net (gains)losses realized and included in net income, net of tax expense/(benefit) of $(31), S(32) and $71, respectively 56 59 (134) Total change in unrealized gains/losses on marketable securities, net of tax 1,638 (424) 151 (1,427) $ 51,967 Total other comprehensive income/(loss) 979 1,553 Total comprehensive income $ 46,666 $ 41,063 7. Conceptual Connection: Assuming 10% interest, how much interest expense did Apple incur due to its deteriorating accounts receivable and inventory turnovers? Enter amount rounded to the nearest whole dollar. For example, 7,684,268.24 would be entered as 7,684,268. (Remember, the numbers are in millions)? CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD (S) shares in Thousands, $ in Millions Beginning Balances (in shares) at Sep. Total Common Stock and Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income/(Loss) 6,294,494 28, 2013 Beginning Balances at Sep. 28, 2013 $ 123,549 $ 19,764 $ 104,256 $ (471) Increase (Decrease) in Stockholders' Equity [Roll Forward] Net income 39,510 39,510 Other comprehensive income/(loss) Dividends and dividend equivalents declared 1,553 1,553 (11,215) $0 (11,215) Repurchase of common stock (in shares) (488,677) Repurchase of common stock (45,000) (45,000) Share-based compensation 2,863 $2,863 Common stock issued, net of shares withheld for employee taxes (in shares) 60,344 Common stock issued, net of shares withheld for employee taxes (448) $ (49) (399) Tax benefit from equity awards, including transfer pricing adjustments 735 $ 735 Ending Balances (in shares) at Sep. 27, 2014 5,866,161 Ending Balances at Sep. 27, 2014 111,547 $ 23,313 87,152 1,082 CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD (S) shares in Thousands, $ in Millions Beginning Balances (in shares) at Sep. Total Common Stock and Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income/(Loss) 6,294,494 28, 2013 Beginning Balances at Sep. 28, 2013 $ 123,549 $ 19,764 $ 104,256 $ (471) Increase (Decrease) in Stockholders' Equity [Roll Forward] Net income 39,510 39,510 Other comprehensive income/(loss) Dividends and dividend equivalents declared 1,553 1,553 (11,215) $0 (11,215) Repurchase of common stock (in shares) (488,677) Repurchase of common stock (45,000) (45,000) Share-based compensation 2,863 $2,863 Common stock issued, net of shares withheld for employee taxes (in shares) 60,344 Common stock issued, net of shares withheld for employee taxes (448) $ (49) (399) Tax benefit from equity awards, including transfer pricing adjustments 735 $ 735 Ending Balances (in shares) at Sep. 27, 2014 5,866,161 Ending Balances at Sep. 27, 2014 111,547 $ 23,313 87,152 1,082 CONSOLIDATED STATEMENTS OF 12 Months Ended COMPREHENSIVE INCOME - USD (S) $ in Millions Sep. 24, 2016 Sep. 26, 2015 Sep. 27, 2014 Statement of Comprehensive Income [Abstract] Net income $ 45,687 $ 53,394 $ 39,510 Other comprehensive income/(loss): Change in foreign currency translation, net of tax effects of $8, $201 and $50, respectively Change in unrealized gains/losses on derivative instruments: 75 (411) (137) Change in fair value of derivatives, net of tax benefit/(expense) of $(7), $(441) and S(297), respectively Adjustment for net (gains)/losses realized and included in net income, net of tax expense/(benefit) of $131, $630 and S(36), respectively 7 2,905 1,390 (741) (3,497) 149 Total change in unrealized gains/losses on derivative instruments, net of tax (734) (592) 1,539 Change in unrealized gains/losses on marketable securities: Change in fair value of marketable securities, net of tax benefit/(expense) of S(863), $264 and $(153), respectively 1,582 (483) 285 Adjustment for net (gains)losses realized and included in net income, net of tax expense/(benefit) of $(31), S(32) and $71, respectively 56 59 (134) Total change in unrealized gains/losses on marketable securities, net of tax 1,638 (424) 151 (1,427) $ 51,967 Total other comprehensive income/(loss) 979 1,553 Total comprehensive income $ 46,666 $ 41,063

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