Presentado por:

Valeria Montejo
Juan Diego Medina
Juan Pablo Majjul
Isabella Cure
 Apple Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except number of shares which are reflected in thousands and per share
amounts)

Years
September 24,
2022
Net sales:
Products $ 316,199.00
Services 78,129.00
Total net sales 394,328.00

Cost of sales:
Products 201,471.00
Services 22,075.00
Total cost of sales 223,546.00
Gross margin 170,782.00

Operating expenses:
Research and development 26,251.00
Selling, general and administrative 25,094.00
Total operating expenses 51,345.00

Operating income 119,437.00

Other income/(expense), net -334.00
Income before provision for income taxes 119,103.00
Provision for income taxes 19,300.00
Net income $ 99,803.00

Earnings per share:

Basic $ 6.15
Diluted $ 6.11

Shares used in computing earnings per share:

Basic 16,215,963.00
Diluted 16,325,819.00
 Years ended
September 25, September 26,
2020

$ 297,392.00 $ 220,747.00
68,425.00 53,768.00
365,817.00 274,515.00

192,266.00 151,286.00
20,715.00 18,273.00
212,981.00 169,559.00
152,836.00 104,956.00

21,914.00 18,752.00
21,973.00 19,916.00
43,887.00 38,668.00

108,949.00 66,288.00
258.00 803.00
109,207.00 67,091.00
14,527.00 9,680.00
$ 94,680.00 $ 57,411.00

$ 5.67 $ 3.31
$ 5.61 $ 3.28

16,701,272.00 17,352,119.00
16,864,919.00 17,528,214.00
Apple Inc.

CONSOLIDATED BALANCE SHEETS

(In millions, except number of shares
which are reflected in thousands and par
value)
September 24,
2022
ASSETS:
Current assets:
Cash and cash equivalents $ 23,646.00
Marketable securities 24,658.00
Accounts receivable, net 28,184.00
Inventories 4,946.00
Vendor non-trade receivables 32,748.00
Other current assets 21,223.00
Total current assets 135,405.00

Non-current assets:
Marketable securities 120,805.00
Property, plant and equipment, net 42,117.00
Other non-current assets 54,428.00
Total non-current assets 217,350.00
Total assets $ 352,755.00

LIABILITIES AND SHAREHOLDERS’ EQUITY:

Current liabilities:
Accounts payable $ 64,115.00
Other current liabilities 60,845.00
Deferred revenue 7,912.00
Commercial paper 9,982.00
Term debt 11,128.00
Total current liabilities 153,982.00

Non-current liabilities:
Term debt 98,959.00
Other non-current liabilities 49,142.00
Total non-current liabilities 148,101.00
Total liabilities 302,083.00

Commitments and contingencies

Shareholders’ equity:

Common stock and additional paid-in capital, $0.00001 par

value: 50,400,000 shares authorized; 15,943,425 and 16,426,786 shares issued
and outstanding, respectively
64,849.00
Retained earnings/(Accumulated deficit) -3,068.00
Accumulated other comprehensive income/(loss) -11,109.00
Total shareholders’ equity 50,672.00
Total liabilities and shareholders’ equity $ 352,755.00
September 24, September 25, September 26,
2022 2021 2020

$ 23,646.00 $ 34,940.00 $ 38,016.00

24,658.00 27,699.00 52,927.00
28,184.00 26,278.00 16,120.00
4,946.00 6,580.00 4,061.00
32,748.00 25,228.00 21,325.00
21,223.00 14,111.00 11,264.00
135,405.00 134,836.00 143,713.00

120,805.00 127,877.00 100,887.00

42,117.00 39,440.00 36,766.00
54,428.00 48,849.00 42,522.00
217,350.00 216,166.00 180,175.00
$ 352,755.00 $ 351,002.00 $ 143,713.00

$ 64,115.00 $ 54,763.00 $ 42,296.00

60,845.00 47,493.00 42,684.00
7,912.00 7,612.00 6,643.00
9,982.00 6,000.00 4,996.00
11,128.00 9,613.00 8,773.00
153,982.00 125,481.00 105,392.00

98,959.00 109,106.00 98,667.00

49,142.00 53,325.00 54,490.00
148,101.00 162,431.00 153,157.00
302,083.00 287,912.00 258,549.00

64,849.00 57,365.00 50,779.00

-3,068.00 5,562.00 14,966.00
 -11,109.00 163.00 -406.00
50,672.00 63,090.00 65,339.00
$ 352,755.00 $ 351,002.00 $ 323,888.00
Apple Inc.
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(In millions)

September 24, September 25,

2022 2021

Cash, cash equivalents and restricted cash, beginning balances $ 35,929.00 $ 39,7
Operating activities:
Net income 99803
Adjustments to reconcile net income to cash generated by operat
Depreciation and amortization 11104
Share-based compensation expense 9038
Deferred income tax expense/(benefit) 895
Other 111
Changes in operating assets and liabilities:
Accounts receivable, net -1823
Inventories 1484
Vendor non-trade receivables -7520
Other current and non-current assets -6499
Accounts payable 9448
Deferred revenue 478
Other current and non-current liabilities 5632
Cash generated by operating activities 122151 1
Investing activities:
Purchases of marketable securities -76923 -1
Proceeds from maturities of marketable securities 29917
Proceeds from sales of marketable securities 37446
Payments for acquisition of property, plant and equipment -10708
Payments made in connection with business acquisitions, net -306
Other -1780
Cash used in investing activities -22354
Financing activities:
Payments for taxes related to net share settlement of equity aw -6223
Payments for dividends and dividend equivalents -14841
Repurchases of common stock -89402
Proceeds from issuance of term debt, net 5465
Repayments of term debt -9543
Proceeds from/(Repayments of) commercial paper, net 3955
Other -160
Cash used in financing activities -110749
Decrease in cash, cash equivalents and restricted cash -10952
Cash, cash equivalents and restricted cash, ending balances $ 24,977.00 $ 35,9
Supplemental cash flow disclosure:
Cash paid for income taxes, net $ 19,573.00 $ 25,3
Cash paid for interest $ 2,865.00 $ 2,6
 September 25, September 26,
2021 2020

$ 39,789.00 $ 50,224.00

94680 57411

11284 11056
7906 6829
-4774 -215
-147 -97

-10125 6917
-2642 -127
-3903 1553
-8042 -9588
12326 -4062
1676 2081
5799 8916
104038 80674

-109558 -114938
59023 69918
47460 50473
-11085 -7309
-33 -1524
-352 -909
-14545 -4289

-6556 -3634
-14467 -14081
-85971 -72358
20393 16091
-8750 -12629
1022 -963
976 754
-93353 -86820
-3860 -10435
$ 35,929.00 $ 39,789.00

$ 25,385.00 $ 9,501.00
$ 2,687.00 $ 3,002.00
 QUESTIONS

1. Is there a difference between the profit and the cash flow?

Why?

2. What is the company’s long and short-term debt?

3. What is the gross margin and the net profit margin?

4. What is the working capital of Apple for the years 2020,

2021, and 2022? Is there a
decrease, increase and why might that be?

5. What was the investment in research and development? Is

it increasing or decreasing?
Why is that?

6. What are the company’s main sources of revenue?

7. What was the EPS for the years 2020, 2021, and 2022?
8. What relevant information for investors may you find in
the financial statements?

9.What are the limitations of financial statements? (Balance

sheet, income statement and
cash flow)

10. How do you interpret the income statement?

11. How do you interpret the balance sheet?

12. How do you interpret the cash flow?

 ANSWERS
The profit is what the company gains from its business operation, which are the common revenues the company has. On the o
flow shows others incomes that the company had in fiscal year, in addition, cash flow allows us to know what is the cash for n
related with the liquidity of business operation, in other case, if a company has massive liabilities but it has cash on balance sh
solve that problem.
The company´s long and short-term debt for fiscal year 2022 is USD 302,083,000,000, then for fiscal year 2021 was USD 287,9

2022: gross margin: 43.31% profit margin: 25.31%

2021: gross margin: 41.78% profit margin: 25.88%
2020: gross margin: 38.23% profit margin: 20.91%

The formula of working capital is current assets minus current liabilities, so Apple for the year 2020 was USD 38.321,000,000,
a decrease because current liabilities of Apple have risen, if we subtract current assets minus current liabilities and the last on

Investment in research and development for the year 2020 was $18.752,000,000, 2021 was $21.914,000,000, and 2022 was $
investigation aimed at the discovery of new knowledge with the hope that such knowledge will be useful in developing a new
improvement to an existing product or process.

iPhone: The iPhone has historically been Apple's most significant source of revenue. It includes sales of various iPhone models
Services: Apple's services segment includes revenue from various digital services, such as the App Store, Apple Music, iCloud, A
Mac: This category includes sales of Apple's Macintosh computers and related accessories.
iPad: Revenue from sales of Apple's iPad tablets and related accessories.
Wearables, Home, and Accessories: This segment includes revenue from products like Apple Watch, AirPods, HomePod, and o
Other Products: Revenue from other products, such as Apple TV, iPod Touch, and other hardware accessories.

2022: Basic: $ 6.15 Diluted: $6.11

2021: Basic: $ 5.67 DIluted: $ 5.61
2020: Basic: $ 3.31 Diluted: $ 3.38
Financial statements provide a wealth of relevant information for investors to make informed decisions about investing in a co
statements includes:

Revenue and Sales Trends: Investors can assess a company's ability to generate revenue and track its sales trends over time. S
Profitability: Financial statements reveal a company's profitability through metrics like gross profit, operating income, and net
efficiency and profitability.
Cash Flow: Cash flow statements show the inflows and outflows of cash from operating, investing, and financing activities. Pos
Debt Levels: The balance sheet provides information about a company's debt levels, including short-term and long-term liabili
risks associated with it.
Assets and Liabilities: Investors can analyze a company's assets (both current and long-term) to understand its resource base a
determine its financial obligations.
Equity: The equity section of the balance sheet shows shareholders' equity, which indicates the residual interest in the compa
health by comparing equity with debt.
Earnings per Share (EPS): EPS is a crucial metric for investors, as it represents the portion of a company's profit allocated to ea
a per-share basis.
Dividend Information: Financial statements provide details about the dividends paid to shareholders, which is essential for inv
Capital Expenditures: The cash flow statement can show the company's capital expenditures, which reflect its investments in a
company's commitment to growth and expansion.
Segment Information: For diversified companies, financial statements may include segment-wise financials, enabling investors
Contingent Liabilities: Notes to the financial statements often disclose contingent liabilities, such as pending lawsuits or warra
Management Discussion and Analysis (MD&A): Some financial statements include MD&A sections where management provid

- Historical in nature: Financial statements are based on past transactions and events. They provide an image of the company'
capture current market conditions or prospects. Dont reflect the company's current position or future potential accurately.
-Not exhaustive: Financial statements cannot capture all aspects of a company's operations, risks, and performance. They prov

monetary transactions: Financial statements primarily focus on quantifiable monetary transactions. They may not reflect the v
reputation, which can be essential to a company's success.
use different accounting policies and practices, which can impact the comparability of financial statements between different
external factors: Traditional financial statements do not adjust for external factors like inflation or the market value, which can

The income statement provides information on the revenues and expenses of the firm, and the resulting income made by the
statement) or a year (if it is an annual report). We must take into consideration concepts like:
trends in revenue growth to understand the company's sales performance.
Gross profit margin: Calculate the percentage of gross profit to revenue to assess the company's ability to control production c
Operating profit margin: Evaluate the efficiency of the company's core operations.
Net profit margin: Determine the company's overall profitability after considering all expenses and taxes.
The first is the balance sheet summarizes the assets owned by a firm, the value of these assets and the mix of financing, debt a
consideration concepts like:
company's ability to meet its short-term obligations by examining its current assets (e.g., cash, accounts receivable) relative to
Solvency: Evaluate the company's long-term financial health by analyzing its long-term debt and shareholders' equity.
Asset composition: Study the proportion of different assets, such as property, plant, and equipment, and intangible assets to u
Debt-to-equity ratio: Calculate the ratio of total debt to shareholders' equity to evaluate the company's financial leverage.

The statement of cash flows specifies the sources and uses of cash of the firm from operating, investing and financing activitie
explain how much the cash flows during a period were, and why the cash balance changed during the period. We must take in
the company's ability to generate cash from its primary business activities.
Investing cash flow: Evaluate the company's capital expenditure and acquisitions.
Financing cash flow: Assess how the company raises and repays funds, including debt and equity issuances.