Question

Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 28, 2019 September 29, 2018 ASSETS Current assets Cash and cash equivalents $ 48,844 $ 25,913 Marketable securities 51,713 40,388 Accounts receivable, net 22,926 23,186 Inventories 4,106 3,956 Vendor non-trade receivables 22,878 25,809 Other current assets 12,352 12,087 Total current assets 162,819 131,339 Non-current assets Marketable securities 105,341 170,799 Property, plant and equipment, net 37,378 41,304 Other non-current assets 32,978 22,283 Total non-current assets 175,697 234,386 Total assets $ 338,516 $ 365,725 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ 46,236 $ 55,888 Other current liabilities 37,720 33,327 Deferred revenue 5,522 5,966 Commercial paper 5,980 11,964 Term debt 10,260 8,784 Total current liabilities 105,718 115,929 Non-current liabilities Term debt 91,807 93,735 Other non-current liabilities 50,503 48,914 Total non-current liabilities 142,310 142,649 Total liabilities 248,028 258,578 Commitments and contingencies Shareholders' equity Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 4,443,236 and 4,754,986 shares issued and outstanding, respectively 45,174 40,201 Retained earnings 45,898 70,400 Accumulated other comprehensive income (loss) (584) (3,454) Total shareholders' equity 90,488 107,147 Total liabilities and shareholders' equity $ 338,516 $ 365,725 See accompanying Notes to Consolidated Financial Statements. Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number of shares which are reflected in thousands and per share amounts) Years ended September 28, 2019 September 29, 2018 September 30, 2017 Net sales: Products $ 213,883 $ 225,847 $ 196,534 Services 46,291 39,748 32,700 Total net sales 260,174 265,595 229,234 Cost of sales: Products 144,996 148,164 126,337 Services 16,786 15,592 14,711 Total cost of sales 161,782 163,756 141,048 Gross margin 98,392 101,839 88,186 Operating expenses: Research and development 16,217 14,236 11,581 Selling, general and administrative 18,245 16,705 15,261 Total operating expenses 34,462 30,941 26,842 Operating income 63,930 70,898 61,344 Other income (expense), net 1,807 2,005 2,745 Income before provision for income taxes 65,737 72,903 64,089 Provision for income taxes 10,481 13,372 15,738 Net income $ 55,256 $ 59,531 $ 48,351 Earnings per share: Basic $ 11.97 $ 12.01 $ 9.27 Diluted $ 11.89 $ 11.91 $ 9.21 Shares used in computing earnings per share: Basic 4,617,834 4,955,377 5,217,242 Diluted 4,648,913 5,000,109 5,251,692 See accompanying Notes to Consolidated Financial Statements. 1.Using fiscal 2017 as the base year, compute trend percentages for fiscal years 2017, 2018, and 2019 for total net sales, total cost of sales, operating income, and net income. 2 By referring your answers to question 1; a)Comment on if there is a clear increasing/decreasing trend for the specified items. b)If there is any trends, please specify the trends are compatible with each other or not (if trend percents go hand-in-hand for all items or diverge from each other). c) If the trend percents diverge from each other, what could be the possible reason of it?

          Apple Inc.
CONSOLIDATED BALANCE SHEETS
(In millions, except number of shares which are reflected in thousands and par value)

September 28, 2019 September 29, 2018

ASSETS

Current assets
Cash and cash equivalents $ 48,844 $ 25,913
Marketable securities 51,713 40,388
Accounts receivable, net 22,926 23,186
Inventories 4,106 3,956
Vendor non-trade receivables 22,878 25,809
Other current assets 12,352 12,087
Total current assets 162,819 131,339
Non-current assets
Marketable securities 105,341 170,799
Property, plant and equipment, net 37,378 41,304
Other non-current assets 32,978 22,283
Total non-current assets 175,697 234,386
Total assets $ 338,516 $ 365,725

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities
Accounts payable $ 46,236 $ 55,888
Other current liabilities 37,720 33,327
Deferred revenue 5,522 5,966
Commercial paper 5,980 11,964
Term debt 10,260 8,784
Total current liabilities 105,718 115,929
Non-current liabilities
Term debt 91,807 93,735
Other non-current liabilities 50,503 48,914
Total non-current liabilities 142,310 142,649
Total liabilities 248,028 258,578
Commitments and contingencies
Shareholders' equity
Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares
authorized; 4,443,236 and 4,754,986 shares issued and outstanding, respectively 45,174 40,201
Retained earnings 45,898 70,400
Accumulated other comprehensive income (loss) (584) (3,454)
Total shareholders' equity 90,488 107,147
Total liabilities and shareholders' equity $ 338,516 $ 365,725

See accompanying Notes to Consolidated Financial Statements.

Apple Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except number of shares which are reflected in thousands and per share amounts)

Years ended September 28, 2019 September 29, 2018 September 30, 2017
Net sales:
Products $ 213,883 $ 225,847 $ 196,534
Services 46,291 39,748 32,700
Total net sales 260,174 265,595 229,234
Cost of sales:
Products 144,996 148,164 126,337
Services 16,786 15,592 14,711
Total cost of sales 161,782 163,756 141,048
Gross margin 98,392 101,839 88,186
Operating expenses:
Research and development 16,217 14,236 11,581
Selling, general and administrative 18,245 16,705 15,261
Total operating expenses 34,462 30,941 26,842
Operating income 63,930 70,898 61,344
Other income (expense), net 1,807 2,005 2,745
Income before provision for income taxes 65,737 72,903 64,089
Provision for income taxes 10,481 13,372 15,738
Net income $ 55,256 $ 59,531 $ 48,351

Earnings per share:
Basic $ 11.97 $ 12.01 $ 9.27
Diluted $ 11.89 $ 11.91 $ 9.21
Shares used in computing earnings per share:
Basic 4,617,834 4,955,377 5,217,242
Diluted 4,648,913 5,000,109 5,251,692

See accompanying Notes to Consolidated Financial Statements.

1.Using fiscal 2017 as the base year, compute trend percentages for fiscal years 2017, 2018, and 2019 for total net sales, total cost of sales, operating income, and net income.

2 By referring your answers to question 1; a)Comment on if there is a clear increasing/decreasing trend for the specified items. b)If there is any trends, please specify the trends are compatible with each other or not (if trend percents go hand-in-hand for all items or diverge from each other). c) If the trend percents diverge from each other, what could be the possible reason of it?

Apple Inc.
CONSOLIDATED BALANCE SHEETS
(In millions, except number of shares which are reflected in thousands and par value)

September 28, 2019 September 29, 2018

ASSETS

Current assets
Cash and cash equivalents 48,844 25,913
Marketable securities 51,713 40,388
Accounts receivable, net 22,926 23,186
Inventories 4,106 3,956
Vendor non-trade receivables 22,878 25,809
Other current assets 12,352 12,087
Total current assets 162,819 131,339
Non-current assets
Marketable securities 105,341 170,799
Property, plant and equipment, net 37,378 41,304
Other non-current assets 32,978 22,283
Total non-current assets 175,697 234,386
Total assets 338,516 365,725

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities
Accounts payable 46,236 55,888
Other current liabilities 37,720 33,327
Deferred revenue 5,522 5,966
Commercial paper 5,980 11,964
Term debt 10,260 8,784
Total current liabilities 105,718 115,929
Non-current liabilities
Term debt 91,807 93,735
Other non-current liabilities 50,503 48,914
Total non-current liabilities 142,310 142,649
Total liabilities 248,028 258,578
Commitments and contingencies
Shareholders' equity
Common stock and additional paid-in capital, 0.00001 par value: 12,600,000 shares
authorized; 4,443,236 and 4,754,986 shares issued and outstanding, respectively 45,174 40,201
Retained earnings 45,898 70,400
Accumulated other comprehensive income (loss) (584) (3,454)
Total shareholders' equity 90,488 107,147
Total liabilities and shareholders' equity 338,516 365,725

See accompanying Notes to Consolidated Financial Statements.

Apple Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except number of shares which are reflected in thousands and per share amounts)

Years ended September 28, 2019 September 29, 2018 September 30, 2017
Net sales:
Products 213,883 225,847 196,534
Services 46,291 39,748 32,700
Total net sales 260,174 265,595 229,234
Cost of sales:
Products 144,996 148,164 126,337
Services 16,786 15,592 14,711
Total cost of sales 161,782 163,756 141,048
Gross margin 98,392 101,839 88,186
Operating expenses:
Research and development 16,217 14,236 11,581
Selling, general and administrative 18,245 16,705 15,261
Total operating expenses 34,462 30,941 26,842
Operating income 63,930 70,898 61,344
Other income (expense), net 1,807 2,005 2,745
Income before provision for income taxes 65,737 72,903 64,089
Provision for income taxes 10,481 13,372 15,738
Net income 55,256 59,531 48,351

Earnings per share:
Basic 11.97 12.01 9.27
Diluted 11.89 11.91 9.21
Shares used in computing earnings per share:
Basic 4,617,834 4,955,377 5,217,242
Diluted 4,648,913 5,000,109 5,251,692

See accompanying Notes to Consolidated Financial Statements.

1.Using fiscal 2017 as the base year, compute trend percentages for fiscal years 2017, 2018, and 2019 for total net sales, total cost of sales, operating income, and net income.

2 By referring your answers to question 1; a)Comment on if there is a clear increasing/decreasing trend for the specified items. b)If there is any trends, please specify the trends are compatible with each other or not (if trend percents go hand-in-hand for all items or diverge from each other). c) If the trend percents diverge from each other, what could be the possible reason of it?

Added by Si̇nem B.

Question

Please give Ace some feedback