Expand Your Critical Thinking

Financial Reporting Problem: Apple Inc.
CT10.1 The financial statements of Apple Inc. are presented in Appendix A. The complete annual report, including the notes to the financial statements, is available at the company's website.

Instructions
Refer to Apple's financial statements and answer the following questions about current liabilities.

a. What were Apple's total current liabilities at Septmber 29, 2018? What was the increase/decrease in Apple's total current
liabilities from the prior year?

b. How much were the accounts payable at September 29, 2018?

c. What were the components of total current liabilities on September 29, 2018 (other than accounts payable already discussed in (b))?

please answer all questions separately (questions a, b, and c)

Appendix A Specimen Financial Statements: Apple Inc. Once esch year, a corporation communicates to its stockholders and olher interested parties by issulitg a complete set of asdited financial saternenta, The annual report, as this communication is called, wamenarizes the finascial results of the company's operations for the year and its plans for the future. Sfany annad reports are attractive, multicolored, klosicy poblic relations pecces, containing pictures of corporate officers and directors as well as photos and deseriptions of nerw products and new buildinge. Yet the basie function of every ancasl rrport is to report finascial iaforraation, almost all of which is a product of the corporatice's accounting system. The content and ospantization of corporate annwal reports have become fairly standarditized. Excluating the pablic relations part of the report (pictures, products, ete), the following are the traditional financial portions of the annual report: - Financial Highlights - Letter to the Stockholders - Management's Dicueusioe and Analysis - Finaneial Statements - Notes to the Financial Statements - Managernent's Responsibility for Financial Reporting - Menagetnent's leeport os Isternal Control over Fiastial leporting - lleport of Independent kegistered Public Accounting hirm - Selected Hinanial Date The offical SEC filing of the ansual report is called a Form 10-K, which ofted omics the pablic relations prieces found in most standard annaal reporis. On the following pages, we presenit Apple Incis finandal stateinests takea fromi the company's zoi8 Form 10K. The complete Form 10K, induding notes to the finanelal statements, is available at the cotnpany/s website. Stares used in compoting earnings per share: Basie Diluted 4,955,3775,000,1095,217,2425,251,6925,470,8205,500,281 See accompasying Notes to Consolidated Finuscial Statersents. Apple Ine. Consolidated Statements of Comprehensive Income (in millions) Net income Other comprebensive income/(loss): Change in foreign currency translation, net of tax effects of $(1),$(77) and $8, respectively Change in unrealized gains/losses on derivative instruments: Change in fair value of derivatives, net of tax benefit/(expense) of $(149),$(478) and $(7), respectively A-2 Ontire comprebensive iacome/(loss): Change in foreign currency translation, net of tax effects of $(1),$(77) and $8, respectively Change ia unrealized gains/losses on derivative instruments: Change in fair value of derivatives, net of tax benefit/(expense) of $(149),$(478) and $(7), respectively Adjustment for net (gains)/losses realized and included in net income, net of tax expense (beeefit) of $(104), $475 and $131, respectively Total ehange in unrealized gains/losses on derivative instruments, Bet of tax Change in unrealized gains/losses on marketable securities: Change in fair value of marketable securities, net of tax benefit/(expense) of $1,156,$425 and \$(863), respectively Adjustmeat for net (gains) /losses realized and ingluded in set income, net of thox expense/(beneftit) of \$21, \$35 and \$(31), respectively Total change in unrealized gains/losses on marketable securities, act of tax Total other comprehensive income/(lass) Total comprehensive income See accompanying Notes to Consolidated Financtal statements, Apple ine. Consolidated Balance Sheets (in millions, exeept number of shares which are reflected in thousands and par value) ASSETSt September 29, 2018 September zo. 2017 Current assets: Cash and cash equivalents Mtarketable securities Accoments receivable, net Inventories Veodor non-trade receivables Other current assets Accoustu recelvable, net Inventoties Veodor non-trade recrivables Other curreet assets Total current assets Noa-current assets: Marketable securtities Property, plant and equipment, net Ocher bon-curreat assets Total non-current assets Total austs IIABILTTTES AND SHAREHOL.DERS' EQUTTY? Current liabtitites: Acoounts payable Other current liabilities Deferred revenue Commercial paper Term debt Total current lisbilities Non-corrent liabelitie: Deferme reveaue Term delt Other noa-current liabilities Total non-currest lisblities Total liabilities Commitiments and consiagencies Comimitments and contingencies Sharehelders' equity: Common vtock and additional paid-in capital, $0,00001 par valee: 12,600,000 shares asthorited; 4,754,986 and 5,126,201 shares issued and cutstanding, respectively Retained earnings Accumalated other comprehensive income/(hoss) Total shareholders' equity Total liahilities and shareholders' equity See accompanying Notes to Conselidated Financial Statemesta. Apple Inc, Consolidated Statements of Shareholders' Equity (in millious, exicept number of shares which are reflected in thotsands and per share amounts) Cormmon Stock and Additional Paid-In Capital Common stock isssed, net of shares withlield for employee taxes Tax benefit from equity anards. 37,022 (8o6) (419) induding transfer pricing adjuitments Dtalances as of September 24, 2016 Net income Other compeebenivive income/(loss) Dividends and dividend gquivalents declared at \$2.40 per thare or RSU Repurchsse of common stock Share-based compenstion Common stock lsuied, net of thares withheld for employee taves Tax benefit from equity awards, inchuding trinafer pricing adjustments. Halanees as of September 30,2017 Cumulative effect of ehange in accounting priaciple Net income Other comprehensive 5.336,1663729 inconse/(loss) Dividends and dividend equivalents declared at $2.72 per share of RSU Repurchase of common stock Share-based compensation (405.549) Comimon stock issued, net of shares withheld for employee taxes Balances as of September 29, 2018 4,754,98634,934 See accompanying Notes to Coowetidated Finascial Statemente. 5102,147(2,053) Cash and cash equivalents, beginning of the year Operating activities: Net income Adjustments to reconcile net income to cash generated by operating netivities: Depreciation and amortization Share-based compensation expense Defcrred income tax expense/(benefit) Otber Apple Inc. Statements of Cash Flows (in millions) Changes in operating assets and liabilities: Accounts receivable, net Inventories Vendor non-trade receivables Other current and nos-current asets Accounts payable Defered revenue Other current and non-current liabilities Cash generated ty operating activities Inverting activities- Purchases of marketable securities Proceeds from maturities of marketable securities Proceeds from sales of marketable securities Payments for acquisition of property, plant and equipment Payments made is connection with basiness acquisitions, net Purchases of nen-marketable securities $20,289September29,2018$20,484September30,2017$21,120September24,2016 Purchases of mon-marketable securities Proceeds from non-marketable securities Other Cash generated by/(used in) investing activities Financing activitiest Proceeds from issuance of common stock Payments for taxes related to net share settlement of equity awards Payments for dividends and dividend equivalents Reptirchases of common stock Proceeds from fissuance of term debt, net Repayments of term debt Change in commercial paper, net Cash used in financing activities Increase/(Decrease) in cash and cash equivalents Cash and cash equivalents, end of the year Supplemental cash flow disclosure Cash paid for income taxes, net Cash paid for interest \begin{tabular}{crr} (1,871) & (521) & (297) \\ 353 & 126 & (1,388) \\ \hline(745) & (124) & \\ \hline 16,066 & (46,446) & (924) \\ \hline \end{tabular}