Use Apple's financial statements in Appendix A to answer the following Required: 1. Identify the total amount of cash and cash equivalents for fiscal years ended (a) September 30, 2017, and (b) September 24, 2016 2. Compute cash and cash equivalents as a percent of total current assets, total current liabilities, total shareholders' equity, and total assets at fiscal year-end for both 2017 and 2016 3. Compute the percent change between the beginning and ending year amounts of cash and cash equivalents for fiscal years ended (a) September 30, 2017, and (b) September 24, 2016. 4. Compute the days' sales uncollected as of (a) September 30, 2017 and (b) September 24, 2016 5. Does Apple's collection of receivables show a favorable or unfavorable change? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Compute the days' sales uncollected as of (a) September 30, 2017, and (b) September 24, 2016. (Round your answers to 1 decimal places.) Days' Sales Uncollected days 3. September 30, 2017 b. September 24, 2016 days ( eguired APPL September 24, 2016 20,484 46,671 Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 30, 2017 ASSETS Current assets Cash and cash equivalents 20.289 Short-term marketable securities 53,892 Accounts receivable, less allowances of $58 and $53, respectively 17,874 Inventories 4,855 Vendor non-trade receivables 17,799 Other current assets 13,936 Total current assets 128,645 Long-term marketable securities 194,714 Property, plant and equipment, net 33.783 Goodwill 5,717 Acquired intangible assets, nel 2,298 Other non-current assets 10.162 Total assets 375,319 15,754 2,132 13.545 8.283 106,869 170,430 27,010 5,414 3,206 8,757 321.686 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable Accrued expenses Deferred revenue Commercial paper Current portion of long-term debt Total current liabilities Deferred revenue, non-current Long-term debt Other non-current liabilities Total liabilities Commitments and contingencies 49.049 25.744 7,548 11,977 6,496 100,814 2,836 97.207 40,415 241.272 37,294 22,027 8,080 8,105 3.500 79,006 2,930 75,427 36,074 193,437 Shareholders' equity Common stock and additional paid in capital, S0.00001 par value: 12,600,000 shares authorized; 5.126,201 and 5.336,166 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income Closs) Total shareholders' equity Total liabilities and shareholders' equity 31.251 96,364 35,867 98,330 (ISO) 134,047 375,319 128,249 321.686 See accompanying Notes to Consolidated Financial Statements sis Problem Ch 5-8 x appendix A.pdf X + Lication.com/Media/Connect_Production/bne/wild_fap_24e/appendix_A.pdf APPLE September 26, 2015 233,715 140.00 91.626 Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except umber of shares which are reflected in thousands and per share amounts) Years ended September 30, 2017 September 24, 2016 Net sales 229.24 215.639 Cost of sales 141018 131,376 Gross margin Operating expenses Research and development 11,581 Selling general and administrative Total operating expenses Operating income 61.144 60,024 Other income (expensel.net 2745 1,348 Income before peovision for income taxes 64,089 Provision for increases 15.685 Net income 48,351 14329 22196 71,230 1,285 72.515 19.121 61,372 Earnings pershan Dilated Shares used in computing caring per 921 8.31 5.217.242 5251,692 5.753421 5470.820 5.500 281 Cash dividends declared per share See accompanying Notes to Consolidated Financial Statements Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME da millions) Years ended September 30, 2017 September 24, 2016 September 16, 2015 18.151 4 5. 67 $ $2304 Other comprehensive incon dos Change is for currency traslation, we ofta effects 7.58 5 201, respectively Change in aliad gainesses o derivative Instruments: Change is fair value oferi t of tax benefit expense) of 16 ,507) and 441), respectively 1.315 234 (3,497) Bet of tax expenselben 5475.503 and 5630, respectively Total change in nalized gam es cadernative Instrument of tax Change in aliaedam maktabilescu Change is fair value of marble securities of tax benefit (783) + X is Problem Ch 5-8 * appendix A.pdf ucation.com/Media/Connect Production/bne/wild_tap_24e/appendix A.pdf September 26, 2015 $ 53,394 1315 Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) Years ended September 30, 2017 September 24, 2016 Net Income 48,351 45687 Other comprehensive income (loss); Change in foreign currency translation, net of tax effects of $(77), 8 d $201. respectively Change in u alized gins/losses on derivative Instruments Change in fair value of derivatives, net of tax benefit (expense) of S(478). (7) and (441), respectively Adjustment for net gains) losses realized and included in net income, net of tax expense Chenefit of $475, 5131 and 63, respectively Total change in realized gains/losses on derivative instruments, set of tax Change in realized gins/losses on marketable securities: Change in fair value of marketable securities, net of tax benefit expense of $425. 8(863) and 5264, respectively Adustment for net(gains) se realized and included in net income set of tax expense benefit of 15,531). and 32. respectively (61) Tocal change is s ized gaismes on table securities, w of tax (846) Total other comprehensive income (oss) (784) Total comprehensive income 3.497 (592) (483) (1.427) See accompanying Notes to Consolidated Financial Statements PPLE Apple Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY Total 45.687 Apple Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In millions, except number of shares which are reflected in thousands) Accumulated Other Common Stock and Comprehensive Additional Paid In Capital Retained Income Shareholders Shares Amount Earnings (Loss) Equity 5.866,161 $ 23,313 $ 87,1525 1,082 $ Balances as of September 27, 2014 111,547 53,394 Net income 53,394 Other comprehensive income (loss) (1.427) (1.427) Dividends and dividend equivalents declared (11,627) (11.627) Repurchase of common stock (325,032) (36,026) (36,026) Share-based compensation 3.586 3,586 Common stock issued, net of shares withheld for employee taxes 37,624 (231) (609) (840) Tax benefit from equity awards, including transfer pricing adjustments 748 Balances as of September 26, 2015 5.578,753 $ 27,416 5 92284 (345) S 119,355 Net income 45.687 Other comprehensive income (loss) 979 979 Dividends and dividend equivalents declared (12.188) (12.188) Repurchase of common stock (279,609) (29.000) (29,000) Share based compensation 4.262 Common stock issued, net of shares withheld for employee taxes 37,022 (806) (419) (1.225) Tax benefit from equity awards, including transfer pricing adjustments Balances as of September 24, 2016 5,336,166 $ 312515 96.1645 128249 Net income 48,351 48.351 Other comprehensive income (loss) Dividends and dividend equivalents declared (12.803) (12.803) Repurchase of common stock 46.496) (33.001) (33,001) Share-based compensation 1909 4,909 Common stock issued, net of shares withheld for employee taxes 36 531 (913) (581) (1.494) Tax benefit from equity awards, including transder pricing adjustments Balances as of September 30, 2017 5,126.2015 35.857 98,330 S (150) S 1047 See accompanying Notes to Consolidated Financial Statements. 379 sis Problem Ch 5-8 X Sappendix A.pdf ucation.com/Media/Connect_Production/bne/wild_fap_24e/appendix A.pdf APPI September 26, 2015 5 13844 51.194 10.505 11.257 1,382 385 Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS din millions) Years ended September 20, 2017 September 24, 2016 Cash and cash equivalents, beginning of the year 20,484 5 21.120 Operating activities: Net income ER 151 Adjustments to reconcile net income to cash generated by operating activities Depreciation and amortization 10,157 Share based compensation expense 4,210 Deferred income tax expense 5.966 Other (166) Changes in operating assets and liabilities: Accounts receivable, et 2,093) Inventories (2.721) Vendor non-trade receivables (4.254) Other current and non-currentes (5.318) 1, OSS Accounts payable 9,618 1.817 Deferred revenue (626 (1.554) Other current and non-current liabilities (154) Cash generated by operating activities 63,598 65824 Investing activities Purchases of marketable securities (159.486) (142.428) Proceeds from maturities of the securities 31.775 Proceeds from sales of marketable securities 94.564 90 536 Payments made in connection with business acquisitions, net (129) (297) Payments for acquisition of property, plant and equipment (12.451) (12,734) Payments for acquisition of intangible assets (34) Payment for strategic investments.net (1.383) Other (110) Cashed in investing activities (46.465) (45.977) 217 215 3.735 5.001 1,042 (166,402) 14.518 107,447 (11.347) 041 (56.274) Proceeds fr a nce of common stock Excess tax benefits from equity wards Pays for an end to be share weet of equiry wards Payment for dividends and dividend equivalents Repurchases of sock (1.874) (127 (1.57 (12.1500 (29,722) (11 561) (35.233) Repy of om det Change in commercial papers 28.662 00) 2.500) (17 ) i) Cash and cash end of the ye 21.120 ysis Problem Ch 5-8 X appendix A.pdf lucation.com/Media/Connect_Production/bne/wild_tap_24e/appendix A.pdf (344) (241) (395) (814) (1.388) (110) (45.977) (46 446) (26) (56.274) 555 495 407 Payments for acquisition of intangible assets Payments for strategic investments, net Other Catch used in investing activities Financing activities: Proceeds from issuance of common stock Excess tax benefit from equity awards Payments for taxes related to net share settlement of equity awards Payments for dividends and dividend equivalents Repurchases of common stock Proceeds from issuance 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 749 (1.499) (11,561) (35.253) 27.114 (1.874) (12,769) (32.900) 28 662 (3.500) 3.852 (17. 147) (195) 20.289 (1.570) (12.150) (29,722) 24.954 (2.500) (197) (20,483) (636) 20,484 2.191 (17,716) 7.276 21,120 Supplemental cash flow disclosure Cash paid for income taxes, et Cash paid for interest 11.591 2,092 $ $ 10,444 1.316 5 5 See accompanying Notes to Consolidated Financial Statements Appendix a Francial Statement information APPLE INC. SELECTED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Basis of Presentation and Preparation In thinic h the such products, retains related inventory risk for physical products, is the primary obligo to the customer and assumes Use Apple's financial statements in Appendix A to answer the following Required: 1. Identify the total amount of cash and cash equivalents for fiscal years ended (a) September 30, 2017, and (b) September 24, 2016 2. Compute cash and cash equivalents as a percent of total current assets, total current liabilities, total shareholders' equity, and total assets at fiscal year-end for both 2017 and 2016 3. Compute the percent change between the beginning and ending year amounts of cash and cash equivalents for fiscal years ended (a) September 30, 2017, and (b) September 24, 2016. 4. Compute the days' sales uncollected as of (a) September 30, 2017 and (b) September 24, 2016 5. Does Apple's collection of receivables show a favorable or unfavorable change? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Compute the days' sales uncollected as of (a) September 30, 2017, and (b) September 24, 2016. (Round your answers to 1 decimal places.) Days' Sales Uncollected days 3. September 30, 2017 b. September 24, 2016 days ( eguired APPL September 24, 2016 20,484 46,671 Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 30, 2017 ASSETS Current assets Cash and cash equivalents 20.289 Short-term marketable securities 53,892 Accounts receivable, less allowances of $58 and $53, respectively 17,874 Inventories 4,855 Vendor non-trade receivables 17,799 Other current assets 13,936 Total current assets 128,645 Long-term marketable securities 194,714 Property, plant and equipment, net 33.783 Goodwill 5,717 Acquired intangible assets, nel 2,298 Other non-current assets 10.162 Total assets 375,319 15,754 2,132 13.545 8.283 106,869 170,430 27,010 5,414 3,206 8,757 321.686 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable Accrued expenses Deferred revenue Commercial paper Current portion of long-term debt Total current liabilities Deferred revenue, non-current Long-term debt Other non-current liabilities Total liabilities Commitments and contingencies 49.049 25.744 7,548 11,977 6,496 100,814 2,836 97.207 40,415 241.272 37,294 22,027 8,080 8,105 3.500 79,006 2,930 75,427 36,074 193,437 Shareholders' equity Common stock and additional paid in capital, S0.00001 par value: 12,600,000 shares authorized; 5.126,201 and 5.336,166 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income Closs) Total shareholders' equity Total liabilities and shareholders' equity 31.251 96,364 35,867 98,330 (ISO) 134,047 375,319 128,249 321.686 See accompanying Notes to Consolidated Financial Statements sis Problem Ch 5-8 x appendix A.pdf X + Lication.com/Media/Connect_Production/bne/wild_fap_24e/appendix_A.pdf APPLE September 26, 2015 233,715 140.00 91.626 Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except umber of shares which are reflected in thousands and per share amounts) Years ended September 30, 2017 September 24, 2016 Net sales 229.24 215.639 Cost of sales 141018 131,376 Gross margin Operating expenses Research and development 11,581 Selling general and administrative Total operating expenses Operating income 61.144 60,024 Other income (expensel.net 2745 1,348 Income before peovision for income taxes 64,089 Provision for increases 15.685 Net income 48,351 14329 22196 71,230 1,285 72.515 19.121 61,372 Earnings pershan Dilated Shares used in computing caring per 921 8.31 5.217.242 5251,692 5.753421 5470.820 5.500 281 Cash dividends declared per share See accompanying Notes to Consolidated Financial Statements Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME da millions) Years ended September 30, 2017 September 24, 2016 September 16, 2015 18.151 4 5. 67 $ $2304 Other comprehensive incon dos Change is for currency traslation, we ofta effects 7.58 5 201, respectively Change in aliad gainesses o derivative Instruments: Change is fair value oferi t of tax benefit expense) of 16 ,507) and 441), respectively 1.315 234 (3,497) Bet of tax expenselben 5475.503 and 5630, respectively Total change in nalized gam es cadernative Instrument of tax Change in aliaedam maktabilescu Change is fair value of marble securities of tax benefit (783) + X is Problem Ch 5-8 * appendix A.pdf ucation.com/Media/Connect Production/bne/wild_tap_24e/appendix A.pdf September 26, 2015 $ 53,394 1315 Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) Years ended September 30, 2017 September 24, 2016 Net Income 48,351 45687 Other comprehensive income (loss); Change in foreign currency translation, net of tax effects of $(77), 8 d $201. respectively Change in u alized gins/losses on derivative Instruments Change in fair value of derivatives, net of tax benefit (expense) of S(478). (7) and (441), respectively Adjustment for net gains) losses realized and included in net income, net of tax expense Chenefit of $475, 5131 and 63, respectively Total change in realized gains/losses on derivative instruments, set of tax Change in realized gins/losses on marketable securities: Change in fair value of marketable securities, net of tax benefit expense of $425. 8(863) and 5264, respectively Adustment for net(gains) se realized and included in net income set of tax expense benefit of 15,531). and 32. respectively (61) Tocal change is s ized gaismes on table securities, w of tax (846) Total other comprehensive income (oss) (784) Total comprehensive income 3.497 (592) (483) (1.427) See accompanying Notes to Consolidated Financial Statements PPLE Apple Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY Total 45.687 Apple Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In millions, except number of shares which are reflected in thousands) Accumulated Other Common Stock and Comprehensive Additional Paid In Capital Retained Income Shareholders Shares Amount Earnings (Loss) Equity 5.866,161 $ 23,313 $ 87,1525 1,082 $ Balances as of September 27, 2014 111,547 53,394 Net income 53,394 Other comprehensive income (loss) (1.427) (1.427) Dividends and dividend equivalents declared (11,627) (11.627) Repurchase of common stock (325,032) (36,026) (36,026) Share-based compensation 3.586 3,586 Common stock issued, net of shares withheld for employee taxes 37,624 (231) (609) (840) Tax benefit from equity awards, including transfer pricing adjustments 748 Balances as of September 26, 2015 5.578,753 $ 27,416 5 92284 (345) S 119,355 Net income 45.687 Other comprehensive income (loss) 979 979 Dividends and dividend equivalents declared (12.188) (12.188) Repurchase of common stock (279,609) (29.000) (29,000) Share based compensation 4.262 Common stock issued, net of shares withheld for employee taxes 37,022 (806) (419) (1.225) Tax benefit from equity awards, including transfer pricing adjustments Balances as of September 24, 2016 5,336,166 $ 312515 96.1645 128249 Net income 48,351 48.351 Other comprehensive income (loss) Dividends and dividend equivalents declared (12.803) (12.803) Repurchase of common stock 46.496) (33.001) (33,001) Share-based compensation 1909 4,909 Common stock issued, net of shares withheld for employee taxes 36 531 (913) (581) (1.494) Tax benefit from equity awards, including transder pricing adjustments Balances as of September 30, 2017 5,126.2015 35.857 98,330 S (150) S 1047 See accompanying Notes to Consolidated Financial Statements. 379 sis Problem Ch 5-8 X Sappendix A.pdf ucation.com/Media/Connect_Production/bne/wild_fap_24e/appendix A.pdf APPI September 26, 2015 5 13844 51.194 10.505 11.257 1,382 385 Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS din millions) Years ended September 20, 2017 September 24, 2016 Cash and cash equivalents, beginning of the year 20,484 5 21.120 Operating activities: Net income ER 151 Adjustments to reconcile net income to cash generated by operating activities Depreciation and amortization 10,157 Share based compensation expense 4,210 Deferred income tax expense 5.966 Other (166) Changes in operating assets and liabilities: Accounts receivable, et 2,093) Inventories (2.721) Vendor non-trade receivables (4.254) Other current and non-currentes (5.318) 1, OSS Accounts payable 9,618 1.817 Deferred revenue (626 (1.554) Other current and non-current liabilities (154) Cash generated by operating activities 63,598 65824 Investing activities Purchases of marketable securities (159.486) (142.428) Proceeds from maturities of the securities 31.775 Proceeds from sales of marketable securities 94.564 90 536 Payments made in connection with business acquisitions, net (129) (297) Payments for acquisition of property, plant and equipment (12.451) (12,734) Payments for acquisition of intangible assets (34) Payment for strategic investments.net (1.383) Other (110) Cashed in investing activities (46.465) (45.977) 217 215 3.735 5.001 1,042 (166,402) 14.518 107,447 (11.347) 041 (56.274) Proceeds fr a nce of common stock Excess tax benefits from equity wards Pays for an end to be share weet of equiry wards Payment for dividends and dividend equivalents Repurchases of sock (1.874) (127 (1.57 (12.1500 (29,722) (11 561) (35.233) Repy of om det Change in commercial papers 28.662 00) 2.500) (17 ) i) Cash and cash end of the ye 21.120 ysis Problem Ch 5-8 X appendix A.pdf lucation.com/Media/Connect_Production/bne/wild_tap_24e/appendix A.pdf (344) (241) (395) (814) (1.388) (110) (45.977) (46 446) (26) (56.274) 555 495 407 Payments for acquisition of intangible assets Payments for strategic investments, net Other Catch used in investing activities Financing activities: Proceeds from issuance of common stock Excess tax benefit from equity awards Payments for taxes related to net share settlement of equity awards Payments for dividends and dividend equivalents Repurchases of common stock Proceeds from issuance 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 749 (1.499) (11,561) (35.253) 27.114 (1.874) (12,769) (32.900) 28 662 (3.500) 3.852 (17. 147) (195) 20.289 (1.570) (12.150) (29,722) 24.954 (2.500) (197) (20,483) (636) 20,484 2.191 (17,716) 7.276 21,120 Supplemental cash flow disclosure Cash paid for income taxes, et Cash paid for interest 11.591 2,092 $ $ 10,444 1.316 5 5 See accompanying Notes to Consolidated Financial Statements Appendix a Francial Statement information APPLE INC. SELECTED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Basis of Presentation and Preparation In thinic h the such products, retains related inventory risk for physical products, is the primary obligo to the customer and assumes