Review the income statement below and describe what its showing. Also explain why an income statement is more important than a balnce sheet or cash flow statement. If you don't think its income statements are more impotant, eplain why.
Review the income statement below and describe what its showing. Also explain why an income statement is more important than a balnce sheet or cash flow statement. If you don't think its income statements are more impotant, eplain why.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Review the income statement below and describe what its showing. Also explain why an income statement is more important than a balnce sheet or
Transcribed Image Text:Apple Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In millions, except number of shares which are reflected in thousands and per share amounts)
Three Months Ended
Nine Months Ended
June 30,
2018
June 29,
June 30,
June 29,
2019
2019
2018
Net sales:
Products
$
42,354 $
43,095 $
162,354 $
173,546
Services
11,455
10,170
33,780
29,149
Total net sales (1)
53,809
53,265
196,134
202,695
Cost of sales:
Products
29,473
28,956
109,758
113,467
Services
4,109
3,888
12,297
11,473
Total cost of sales
33,582
32,844
122,055
124,940
Gross margin
20,227
20,421
74,079
77,755
Operating expenses:
Research and development
4,257
3,701
12,107
10,486
Selling, general and administrative
4,426
4,108
13,667
12,489
Total operating expenses
8,683
7,809
25,774
22,975
Operating income
11,544
12,612
48,305
54,780
Other income/(expense), net
367
672
1,305
1,702
Income before provision for income taxes
11,911
13,284
49,610
56,482
Provision for income taxes
1,867
1,765
8,040
11,076
Net income
$
10,044 $
11,519 $
41,570 $
45,406
Earnings per share:
Basic
$
2.20 $
2.36 $
8.92 $
9.07
Diluted
2.18 $
2.34 $
8.86 $
8.99
Shares used in computing earnings per share:
Basic
4,570,633
4,882,167
4,660,175
5,006,640
Diluted
4,601,380
4,926,609
4,691,759
5,050,963
(1) Net sales by reportable segment:
Americas
$
25,056 $
24,542 $
87,592 $
84,576
45,342
Europe
Greater China
11,925
12,138
47,038
9,157
9,551
32,544
40,531
Japan
4,082
3,867
16,524
16,572
Rest of Asia Pacific
3,589
3,167
14,132
13,978
Total net sales
53,809 $
53,265 $
196,134 $
202,695
(1) Net sales by category:
iPhone
$
25,986 $
29,470 $
109,019 $
128,133
Мас
5,820
5,258
18,749
17,858
iPad
5,023
4,634
16,624
14,397
Wearables, Home and Accessories
5,525
3,733
17,962
13,158
Services
11,455
10,170
33,780
29,149
Total net sales
$4
53,809 $
53,265 $
196, 134 $
202,695
Expert Solution
Step 1
Income statement is the statement which shows the profit and loss earned during the year.
All expenses and revenues which relate to the period are shown in the income statement.
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