T I M C O K By: Amanda D. Barlow

Apple Inc. is engaged in designing, manufacturing and marketing mobile communication and media devices, personal computers, and portable digital music players.

Apple Inc.’s (NASDAQ:AAPL) new $5 Billion spaceship-shaped global headquarters in Cupertino, known imaginatively as Apple Campus 2.

The $5 billion project is due for completion in 2016 and will include one of the largest photovoltaic arrays in the world.

FINANCIAL STATEMENTS REPORT 2012-2014

Cash and Cash Equivalents $13,844,000 $14,259,000 $10,746,000 BALANCE SHEET Period Ending: September 27, 2014 September 28, 2013 September 29, 2012 CURRENT ASSETS Cash and Cash Equivalents $13,844,000 $14,259,000 $10,746,000 Short- Term Investments $11,233,000 $26,287,000 $18,383,000 Net Receivables $31,537,000 $24,094,000 $21,275,000 Inventory $2,111,000 $1,764,000 $791,000 Other Current Assets $9,806,000 $6,882,000 $6,458,000 Total Current Assets $68,531,000 $73,286,000 $57,653,000 LONG-TERM ASSETS Long-Term Investments $130,162,000 $106,215,000 $92,122,000 Fixed Assets $20,624,000 $16,597,000 $15,452,000 Goodwill $4,616,000 $1,577,000 $1,135,000 Intangible Assets $4,142,000 $4,179,000 $4,224,000 Other Assets $3,764,000 $5,146,000 $5,478,000 Deferred Asset Charges $0 Total Assets $231,839,000 $207,000,000 $176,064,000

Short-Term Debt / Current Portion of Long-Term Debt $6,308,000 $0 Period Ending: September 27, 2014 September 28, 2013 September 29, 2012 CURRENT LIABILITIES Accounts Payable $48,649,000 $36,223,000 $32,589,000 Short-Term Debt / Current Portion of Long-Term Debt $6,308,000 $0 Other Current Liabilities $8,491,000 $7,435,000 $5,953,000 Total Current Liabilities $63,448,000 $43,658,000 $38,542,000 LONG TERM LIABILITIES Long-Term Debt $28,987,000 $16,960,000 Other Liabilities $24,826,000 $20,208,000 $16,664,000 Deferred Liability Charges $3,031,000 $2,625,000 $2,648,000 Misc. Stocks Minority Interest Total Liabilities $120,292,000 $83,451,000 $57,854,000

Total Liabilities & Equity Period Ending: September 27, 2014 September 28, 2013 September 29, 2012 STOCKHOLDERS’ EQUITY Common Stocks $23,313,000 $19,764,000 $16,422,000 Capital Surplus $0 Retained Earnings $87,152,000 $104,256,000 $101,289,000 Treasury Stock Other Equity $1,082,000 ($471,000) $499,000 Total Equity $111,547,000 $123,549,000 $118,210,000 Total Liabilities & Equity $231,839,000 $207,000,000 $176,064,000

Research and Development $6,041,000 $4,475,000 $3,381,000 INCOME STATEMENT Period Ending: September 27, 2014 September 28, 2013 September 29, 2012 Total Revenue $182,795,000 $170,910,000 $156,508,000 Cost of Revenue $112,258,000 $106,606,000 $87,846,000 Gross Profit $70,537,000 $64,304,000 $68,662,000 OPERATING EXPENSES Research and Development $6,041,000 $4,475,000 $3,381,000 Sales, General and Admin. $11,993,000 $10,830,000 $10,040,000 Non-Recurring Items $0 Other Operating Items Operating Income $52,503,000 $48,999,000 $55,241,000 Add'l income/expense items $980,000 $1,156,000 $522,000 Earnings Before Interest and Tax $53,483,000 $50,155,000 $55,763,000 Interest Expense Earnings Before Tax Income Tax $13,973,000 $13,118,000 $14,030,000 Minority Interest

HORIZONTAL

Cash and cash Equivalents Short-term Investments HORIZONTAL ANALYSIS   2014 2013 2012 ASSETS CURRENT ASSETS  In Value In % Cash and cash Equivalents (415,000) (2.91%) 3,513,000 32.69% 931,000 9.49% Short-term Investments (15,054,000) (57.27%) 7,904,000 43% 2,246,000 13.92% Net Receivables 7,443,000 30.89% 2,819,000 13.23% 7,544,000 54.94% Inventory 347,000 19.67% 973,000 123% 15,000 1.93% Other Current Assets 2,924,000 42.49% 424,000 6.48% 2,019,000 44.58% Total Current Assets (4,755,000) (6.49%) 15,630,000 27.12% 12,665,000 28.15%

Long-term Investments   2014 2013 2012 NON-CURRENT ASSETS Long-term Investments 23,947,000 22.55% 14,093,000 15.30% 36,514,000 65.63% Fixed Assets 4,027,000 24.26% 1,145,000 7.41% 7,675,000 98.68% Goodwill 3,039,000 192.71% 442,000 38.94% 239,000 26.67% Intangible Assets (37,000) (0.89%) (45,000) (1.07%) 688,000 19.46% Other Assets (1,382,000) (26.86%) (332,000) (6.06%) 1,922,000 54.05% Total Assets 24,839,000 12% 30,936,000 17.57% 59,693,000 51.30%

Other current liabilities 1,056,000 14.20% 1,482,000 24.90% 1,862,000   2014 2013 2012 Liabilities Current Liabilities In Value In % Accounts Payable 12,426,000 34.30% 3,634,000 11.15% 8,710,000 36.48% Short-term Debt 6,308,000 - Other current liabilities 1,056,000 14.20% 1,482,000 24.90% 1,862,000 45.51% Total Current Liabilities 19,790,000 70.91% 5,116,000 13.27% 10,572,000 37.80% Non-current Liabilities Long-term Debt 12,027,000 16,960.000 Other Liabilities 4,618,000 22.85% 3,544,000 21.27% 6,564,000 64.99% Deferred Liability Charges 406,000 15.47% (23,000) (0.87%) 962,000 57.06% Total Liabilities 36,841,000 44/15% 25,597,000 44.24% 18,098,000 45.52%

  2014 2013 2012 Shareholders’ Equity In Value In % Common Shares 3,549,000 17.96% 3,342,000 20.35% 3,091,000 23.19% Retained Earnings (17,104,000) 16.41% 2,967,000 2.93% 38,448,000 61.18% Other Equity 1,553,000 (329.72%) (970,000) (194.39%) 56,000 12.64% Total Equity (12,002,000) (9.71%) 5,339,000 4.52% 41.595,000 100%

TREND

Cash and cash Equivalents Short-term Investments TREND ANALYSIS   2014 2013 2012 CURRENT ASSETS  Cash and cash Equivalents 129% 133% 100% Base Year Short-term Investments 61% 143% Net Receivables 148% Inventory 267% 223% Other Current Assets 152% 107% Total Current Assets 119% 127%

Long-term Investments Deferred Asset Charges   2014 2013 2012 NON-CURRENT ASSETS Long-term Investments 141 % 115% Fixed Assets 133% 107% Goodwill 407% 139% Intangible Assets 98% 99% Other Assets 69% 94% Deferred Asset Charges - Total Assets 132% 118%

Other Current Liabilities 142.63% 124.90% Total Current Liabilities   2014 2013 2012 CURRENT LIABILITIES Accounts Payable 149.28% 111.15% Short-Term Debt - Other Current Liabilities 142.63% 124.90% Total Current Liabilities 164.62% 113.27% LONG TERM LIABILITIES Long-Term Debt Other Liabilities 149% 121.30% Deferred Liability Charges 114.46% 99.13% Misc. Stocks Minority Interest Total Liabilities 207.92% 144.24%

  2014 2013 2012 SHAREHOLDER’S EQUITY Common Stocks 141.96% 120.35% Capital Surplus - Retained Earnings 86.04% 102.93% Treasury Stock Other Equity 216.83% (94.39%) Total Equity 94.36% 104.52%

VERTICAL

Cash and cash Equivalents Short-term Investments VERTICAL ANALYSIS   2014 2013 2012 CURRENT ASSETS  Cash and cash Equivalents 5.97 6.89 6.10 Short-term Investments 4.85 12.70 10.44 Net Receivables 13.60 11.64 12.08 Inventory 0.91 0.85 0.45 Other Current Assets 4.23 3.32 3.67 Total Current Assets 29.56% 35.40% 32.75%

Long-term Investments Deferred Asset Charges   2014 2013 2012 NON-CURRENT ASSETS Long-term Investments 56.14 51.31 52.32 Fixed Assets 8.90 8.02 8.78 Goodwill 1.99 0.75 0.64 Intangible Assets 1.79 2.02 2.40 Other Assets 1.62 2.49 3.11 Deferred Asset Charges - -- Total Assets 100%

Other Current Liabilities 3.66 3.59 3.38 Total Current Liabilities   2014 2013 2012 CURRENT LIABILITIES Accounts Payable 20.98 17.50 18.51 Short-Term Debt 2.72 - Other Current Liabilities 3.66 3.59 3.38 Total Current Liabilities 27.37% 21.09% 21.89% LONG TERM LIABILITIES Long-Term Debt 12.50 8.19 Other Liabilities 10.71 9.76 9.46 Deferred Liability Charges 1.31 1.27 1.50 Misc. Stocks Minority Interest Total Liabilities 51.89% 40.31% 32.86%

Total Liabilities and Equity   2014 2013 2012 SHAREHOLDER’S EQUITY Common Stocks 10.06 9.55 9.33 Capital Surplus - Retained Earnings 37.59 50.37 57.53 Treasury Stock Other Equity 0.47 0.23 0.28 Total Equity 48.11% 59.69% 67.14% Total Liabilities and Equity 100%

RATIO LIQUIDITY 2014 2013 2012 Net Working Capital 5,083,000 29,628,000 19,111,000 Current Ratio 1.08 1.68 1.50 Quick Ratio 1.05 1.64 1.48

ACTIVITY RATIO/ ASSET UTILIZATION RATIO 2014 2013 2012 Accounts Receivable Turnover 6.57 7.53 8.94 Average Collection Period 54.79 47.81 40.27 Inventory Turnover 57.94 83.45 112.12 Average Age of Inventory 6.21 4.31 3.21 Operating Cycle 61 52.12 43.48 Fixed Asset Turnover 8.86 10.30 10.13 Total Asset Turnover 0.79 0.83 0.89

LEVERAGE/ DEBT UTILIZATION RATIO 2014 2013 2012 Debt Ratio 0.52 0.40 0.33 Debt/ Equity Ratio 1.08 0.68 0.49 Times Interest Earned -

PROFITABILITY RATIO 2014 2013 2012 Gross Profit Margin 39% 38% 44% 22% 275% Return on Asset 83% 89% 107% Return on Equity 35% 30%

Accounts Receivable Turnover 6.57 11.75 Average Collection Period Company (2014) Industry Averages Evaluation Return on Asset 83% 15.13% Better Return on Equity 35% 29.17% Current Ratio 1.08 1.57 Worse Quick Ratio 1.05 1.51 Fixed Asset Turnover 8.86 - Total Asset Turnover 0.79 0.75 Debt Ratio 0.52 Debt/Equity Ratio 108% 32.75% Inventory Turnover 57.94 44.42 Accounts Receivable Turnover 6.57 11.75 Average Collection Period 54.79 Average Age of Inventory 6.21 Operating Cycle 61 26 Gross Profit Margin 39% 42.49% Profit Margin 22% 19.49%