A condensed statement of cash flows for Apple Computer Inc. for the year ended Septembe2r 4,2005, is shown here. Use it to answer the questions given after the statement. (L0 5)
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Apple Computer Inc. |
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Statement of Cash Flows |
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For the year ended September 24,2005 |
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(in millions) |
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Cash and cash equivalents beginning of the year |
$2,969 |
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Cash generated by operating activities |
2535 |
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Investing cash flows: |
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Purchase of short-term investments |
-11470 |
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Proceeds from maturities of short-term investments |
8609 |
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Purchase of property, plant, and equipment |
-260 |
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Other |
-21 |
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Cash generated by (used for) investing activities |
-2556 |
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Financing cash flows: |
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Proceeds from issuance of common stock |
543 |
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Cash generated by (used for) financing activities |
543 |
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Increase(decrease)In cash and cash equivalents |
522 |
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Cash and cash equivalents end of the year |
$3,491 |
Required
a. Did Apple purchase any property, plant, or equipment during the year?
b. If you were to examine Apple”s balance sheet at September 24, 2005, what would be the amount for cash and cash equivalents?
c. Was cash generated from operations or used by operations? By what amount?
d. Did Apple receive any new contributions from owners during the year? How can you tell?