Expand Your Critical Thinking

Financial Reporting Problem: Apple Inc.

CT$6\mathrm{.}1$ The notes that accompany a company's financial statements provide informative details that would clutter the amounts and descriptions presented in the statements. Refer to the financial statements of Apple Inc. in Appendix A$.$ The complete annual report, including the notes to the financial statements, is available at the company's website.

Instructions

Answer the following questions. $($Give the amounts in millions of dollars, as shown in Apple's annual report.$)$

a$.$ What did Apple report for the amount of inventories in its Consolidated Balance Sheet at September $26,2020?$ At September $28,2019?$

b$.$ Compute the dollar amount of change and the percentage change in inventories between $2019$ and $2020.$ Compute inventory as a percentage of current assets for $2020.$

c$.$ What are the cost of sales $($product$)$ reported by Apple for $2020,2019,$ and $2018?$ Compute the ratio of cost of sales to net sales in $2020($Hint: Use "product" sales and "product" "cost info" rather than "total" in computing this ratio.$).$