1. CT4.1 The financial statements of Apple Inc. are presented in Appendix A. Instructions a. Using
the consolidated income statement and balance sheet, identify items that may result in adjusting
entries for deferrals. b. Using the consolidated income statement, identify two items that may
result in adjusting entries for accruals. c. What was the amount of depreciation and amortization
expense for 2020 and 2019? (You will need to examine the notes to the financial statements or
the statement of cash flows.) Where was accumulated depreciation and amortization reported? d.
What was the cash paid for income taxes during 2020, reported at the bottom of the consolidated
statement of cash flows? What was income tax expense (provision for income taxes) for 2020 ?
Apple Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except number
of shares which are reflected in thousands and per share amounts) Years ended Net sales: Cost of
sales: Operating expenses: See accompanying Notes to Consolidated Financial Statements.
Apple Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions)
Years ended Net income Other comprehensive income/(loss): Change in foreign currency
translation, net of tax Change in unrealized gains/losses on marketable debt securities, net of tax:
Change in fair value of marketable debt securities Adjustment for net (gains)/losses realized and
included in net income Total change in unrealized gains/losses on marketable debt securities
Total other comprehensive income/(loss) Total comprehensive income See accompanying Notes
to Consolidated Financial Statements. Apple Inc. CONSOLIDATED BALANCE SHEETS n
millions, except number of shares which are reflected in thousands and par value) Apple Inc.
Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions)