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Key comparative figures for both Apple and Google follow.     Apple   Google $ millions Current Year Prior Year   Current Year Prior Year Liabilities + Equity $365,725 $375,319   $232,792 $197,295 Net income 59,531 48,351   30,736 12,662 Revenues 265,595 229,234   136,189 110,855

Key comparative figures for both Apple and Google follow.     Apple   Google $ millions Current Year Prior Year   Current Year Prior Year Liabilities + Equity $365,725 $375,319   $232,792 $197,295 Net income 59,531 48,351   30,736 12,662 Revenues 265,595 229,234   136,189 110,855

Financial Accounting: The Impact on Decision Makers
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter13: Financial Statement Analysis
Section: Chapter Questions
Problem 13.1E
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Key comparative figures for both Apple and Google follow.
 

  Apple   Google
$ millions Current Year Prior Year   Current Year Prior Year
Liabilities + Equity $365,725 $375,319   $232,792 $197,295
Net income 59,531 48,351   30,736 12,662
Revenues 265,595 229,234   136,189 110,855
 


Required:
1. What is the total amount of assets invested for the current year in (a) Apple and (b) Google?
2. What is the current-year return on assets for (a) Apple and (b) Google?
3. How much are current-year expenses for (a) Apple and (b) Google?
4-a. Is the current-year return on assets better than the 10% return of competitors for Apple?
4-b. Is the current-year return on assets better than the 10% return of competitors for Google?
5. Relying only on return on assets, would we invest in Google or Apple?

 

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