Part $1$: Review Apple's Form $10-$K for the fiscal year ended September $30,2023($the $\text{'}2023$ fiscal year'$).$ Use this

information to answer all the following questions:

Assume that instead of using its current accounting policy for "research and development" costs, Apple instead

capitalized these costs in the fiscal year the costs are incurred and then amortized the costs on a straight$-$line

basis over the subsequent two fiscal years. Estimate the Operating income that Apple would have reported for

the $2023$ fiscal year.

Assume that instead of using its current accounting policy for "deferred revenue", Apple instead recognized this

revenue in the fiscal year the amounts that are billed to customers. Estimate the Operating income that Apple

would have reported for the $2023$ fiscal year. $($Hint: see Note $2$ in Apple's Form $10-$K$.)$

Do you think that Apple's reported earnings are a good reflection of Apple's underlying economic performance?

Briefly explain your answer. $($Hint: review Apple's 'Critical Accounting Estimates' on p$.25$ and the 'Critical Audit Matter'

on pp$.50$ and $51$ of Form $10-$K$.)$