Apple Inc.

- Financial Statements

Income Statement - Apple Balance Sheet - Apple Cash Flow Statement

($ in Millions Except Per Share Amounts) ($ in Millions) ($ in Millions)
Current Previous Current
Assets: Operating Activities:
Revenue: $ 200 Current Assets: Net Income:
Cost of Goods Sold: 50 Cash & Cash-Equivalents: $ 10 $ 40 Depreciation:
Gross Profit: 150 Accounts Receivable: 10 15 Stock-Based Compensation:
Inventory: 20 25 Deferred Income Taxes:
Operating Expenses: Prepaid Expenses: 5 10
Research & Development: 30 Other Current Assets: 5 5 Changes in Operating Assets & Liabilities:
General & Administrative: 40 Total Current Assets: 50 95 Accounts Receivable:
Total Operating Expenses: 70 Inventory:
Long-Term Assets: Prepaid Expenses:
Depreciation: 10 Long-Term Investments: 10 15 Other Current Assets:
Stock-Based Compensation: 5 Property, Plant & Equipment: 50 60 Accounts Payable:
Goodwill: 10 10 Accrued Expenses:
Operating Income: 65 Other Intangible Assets: 15 20 Deferred Revenue:
Interest Income / (Expense): 5 Other Long-Term Assets: 5 10 Total Changes in Op. Assets/Liab.:
Other Income / (Expense): (5) Total Long-Term Assets: 90 115
Pre-Tax Income: 65 Cash Flow from Operations:
Income Tax Provision: 32 Total Assets: $ 140 $ 210
Investing Activities:
Net Income: 33 Liabilities & Shareholders' Equity: Purchases of Long-Term Investments:
Current Liabilities: Sales and Maturities of LT Investments:
Earnings Per Share: $0.33 Revolver: 10 5 Capital Expenditures:
Shares Outstanding: 100 Accounts Payable: 20 25 Purchases of Intangible Assets:
Accrued Expenses: 20 25 Purchases of Other Long-Term Assets:
Deferred Revenue: 20 30 Cash Flow from Investing:
Total Current Liabilities: 70 85
Financing Activities:
Long-Term Liabilities: Common Stock Issuances:
Long-Term Debt: 10 20 Common Stock Repurchases:
Deferred Tax Liabilities: 10 15 Dividends Issued:
Other Long-Term Liabilities: 10 15 Issue / (Pay Off) Revolver:
Total Long-Term Liabilities: 30 50 Issue / (Pay Off) Long-Term Debt:
Changes in Other Long-Term Liabilities:
Total Liabilities: $ 100 $ 135 Cash Flow from Financing:

Shareholders' Equity: Impact of Changes in FX Rates:

Common Stock & APIC: 20 30
Treasury Stock: (5) (10) Beginning Cash & Cash-Equivalents:
Retained Earnings: 20 48 Increase / (Decrease) in Cash:
Accumulated Other Income: 5 7 Ending Cash & Cash-Equivalents:
Total Shareholders' Equity: 40 75

Total Liabilities & SE: $ 140 $ 210

BALANCE CHECK: OK! OK!

 Linking the Statements - Key Points

Current Income Statement - No changes

rating Activities: Cash Flow Statement - No changes if everything is already filled out
$ 33
10 Balance Sheet:
5 Except For…
5 Current Assets: Estimated directly on BS Cash (comes from CFS)
Long-Term Assets: Cash Flow from Investing Goodwill (constant), PP&E (Depreciation)
g Assets & Liabilities:
(5) Current Liabilities: Estimated directly on BS Revolver
(5) Long-Term Liabilities: Cash Flow from Financing Deferred Tax Liabilities
(5) Shareholders' Equity: Cash Flow from Financing APIC (SBC), Retained Earnings (Net Income)
-
5 Each BS item must be reflected once and only once on the CFS, and vice versa (except for items held constant)
5
10 Do a balance check at the end
Assets/Liab.: 5
Don't worry about all the details for now - just an introduction. Much easier to understand in
58 the context of interview questions (next) and 3-statement models (next course).

esting Activities:
rm Investments: (10)
of LT Investments: 5
(20)
(5)
ong-Term Assets: (5)
(35)

ncing Activities:
 5
(5)
(5)
(5)
-Term Debt: 10
g-Term Liabilities: 5
5

sh-Equivalents: 10
30
Equivalents: $ 40