Question

The following items appeared in the Investing Activities section of Apple Inc.’s statement of cash flows included in Form 10-K for the year ended September 26, 2015. (All amounts are in millions of dollars.)

	2015	2014	2013
Purchases of marketable securities	$(166,402)	$(217,128)	$(148,489)
Proceeds from maturities of marketable securities	14,538	18,810	20,317
Proceeds from sales of marketable securities	107,447	189,301	104,130

Required:

1. What amount did Apple spend in 2015 to purchase marketable securities?
$____?___ million

How does this amount compare to the amounts spent in the two prior years?

This was $__?__ million  less  than it spent in 2014.

This was $__?___ million  more  than it spent in 2013.

2. What amount did Apple receive from marketable securities that matured in 2015?
$___?____ million

How does this amount compare to the amounts received in the two prior years?

This was $___?__ million  less  than it received in 2014.

This was $___?____million  less  than it received in 2013.

Answer 1

1.

Apple spent in 2015 to purchase marketable securities = $166,402 million

Difference between 2015 and 2014 purchase amounts = 217,128 - 166,402

= $50,726 million

Difference between 2015 and 2013 purchase amounts = 166,402 - 148,489

= $17,913 million

This was $50,726 million  less  than it spent in 2014.

This was $17,913 million  more  than it spent in 2013.

2.

Amount that Apple received from marketable securities that matured in 2015 = $14,538 million

Difference between 2015 and 2014 matured amounts = 18,810 - 14,538

= $4,272 million

Difference between 2015 and 2013 matured amounts = 20,317 - 14,538

= $5,779 million

This was $4,272 million  less  than it received in 2014.

This was $5,779 million  less  than it received in 2013.