Question

Refer to 2019 Annual Report (Form 10-K) of Apple Inc. provided and answer the following questions relating to Apple’s Consolidated Statements of Cash Flows. Refer to the notes to financial statements for additional relevant information. (a) Determine whether net cash flow from operations is stable through time. (b) Did Apple’s operating assets and liabilities increase or decrease between the year ended September 29, 2018, and the year ended September 28, 2019? By how much? What items contributed most to the change? (c) Compare net cash flow from operations to net income. Explain why they differ. (d) Suppose a friend of yours commented, "Apple must have poor financial management. It made a profit of $55,256 million in the year ended September 28, 2019, and it generated $69,391 million in cash from operations, yet it paid only $14,119 million in dividends. Its shareholders should expect more." Respond to your friend's comment. (e) Did Apple’s net cash used by investing activities increase or decrease between the year ended September 29, 2018, and the year ended September 28, 2019? By how much? What were the major causes of the change? (f) What were the primary uses of cash by investing activities in the year ended September 28, 2019? (g) Did Apple’s net cash used by financing activities increase or decrease between the year ended September 29, 2018, and the year ended September 28, 2019? By how much? What were the major causes of the change? (h) What were the primary providers of cash or uses of cash by financing activities in the year ended September 28, 2019? (i) Relate net cash flow from operations to investing and dividend payment needs in the year ended September 28, 2019. Locate Management's Discussion and Analysis. Look under the section titled Liquidity and Capital Resources. What does management have to say? What are your comments?