Key figures for Apple and Google follow. $ millions Net income Income taxes Interest expense Current Year $ 55,256 10,481 3,576 Required 1 Required 2 Apple One Year Prior $ 59,531 13,372 3,240 Apple-Times interest earned Google-Times interest earned Two Years Prior $ 48,351 15,738 2,323 Complete this question by entering your answers in the tabs below. Required 3. Required: 1. Compute times interest earned for the three years' data shown for each company. 2. In the current year, and using times interest earned, which company appears better able to pay interest obligations? 3. In the current year, and using times interest earned, is the company in a good or bad position to pay interest obligations for (a) Apple, and (b) Google? Assume an industry average of 10. Current Year $ 34,343 5,282 100 Compute times interest earned for the three years' data shown for each company. Note: Round your answers to 1 decimal place. Current One Year Two Years Year Prior Prior < Required 1 Google One Year Prior $ 30,736 4,177 114 Required 2 > Two Years Prior $ 12,662 14,531 109

Key figures for Apple and Google follow. $ millions Net income Income taxes Interest expense Current Year $ 55,256 10,481 3,576 Required 1 Required 2 Apple One Year Prior $ 59,531 13,372 3,240 Apple-Times interest earned Google-Times interest earned Two Years Prior $ 48,351 15,738 2,323 Complete this question by entering your answers in the tabs below. Required 3. Required: 1. Compute times interest earned for the three years' data shown for each company. 2. In the current year, and using times interest earned, which company appears better able to pay interest obligations? 3. In the current year, and using times interest earned, is the company in a good or bad position to pay interest obligations for (a) Apple, and (b) Google? Assume an industry average of 10. Current Year $ 34,343 5,282 100 Compute times interest earned for the three years' data shown for each company. Note: Round your answers to 1 decimal place. Current One Year Two Years Year Prior Prior < Required 1 Google One Year Prior $ 30,736 4,177 114 Required 2 > Two Years Prior $ 12,662 14,531 109

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter3: Taxes On The Financial Statements

Section: Chapter Questions

Problem 6RP

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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?
Give only typing answer with explanation and conclusion Byron Books Inc. recently reported $18 million of net income. Its EBIT was $34.3 million, and its tax rate was 25%. What was its interest expense? (Hint: Write out the headings for an income statement, and then fill in the known values. Then divide $18 million of net income by (1 - T) = 0.75 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same procedure to complete similar problems.) Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary. Do not round intermediate calculations.
Averill Products Inc., reported the following on the company's income statement in 20Y8 and 20Y9: 20Y9. 20Y8 Interest Expense $440,000. $400,000 20Y9. 20Y8 Income before income tax expense. 5,544,000. 4,400,000 Time Interest earned. 20Y9 (fill the blank) 20Y8 (fill the blank)
MENT Byron Books Inc. recently reported $13 million of net income. ItsEBIT was $20.8 million, and its tax rate was 35%. What was its interest expense? (Hint:Write out the headings for an income statement, and fill in the known values. Then divide$13 million of net income by (1 2T) 5 0.65 to find the pretax income. The differencebetween EBIT and taxable income must be interest expense. Use this same procedure tocomplete similar problems.)
Byron Books Inc. recently reported $15 million of net income. Its EBIT was $36.4 million, and its tax rate was 25%. What was its interest expense? (Hint: Write out the headings for an income statement, and then fill in the known values. Then divide $15 million of net income by (1 - T) = 0.75 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same procedure to complete similar problems.) Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary. Do not round intermediate calculations. $________
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Attached is Apple Inc.'s financial information. Please answer questions 1-3. 1. Apple's price-to-book ratio on 12/31/2021 is a. 16.43 b. 34.10 c. 45.93 d. 22.39 2. Apple's effective tax rate in 2021 is a. 11.83%b. 20.65%c. 17.72%d. 13.30% 3. Apple's net operating profit after tax in 2021 is a. $80.27 billion b. $42.26 billion c. $94.45 billion d. $55.91 billion
INCOME STATEMENT Year ended June 30 2022 2021 $'000 $'000Revenue 22450 18675Cost of sales 8475 8055Gross Profit 13975 10620Distribution costs 4245 3120Administrative expenses 1276 2134Selling expenses…
Little Books Inc. recently reported $3 million of net income. Its EBIT was $6 million, and its tax rate was 40%. What was its interest expense? [Hint: Write out the headings for an income statement and fill in the known values. Then divide $3 million of net income by (1 " T) ! 0.6 to find the pretax income. The difference between EBIT and taxable income must be the interest expense. Use this same procedure to complete similar problems.]
Use the following information to answer this question. Windswept, Incorporated 2022 Income Statement (in millions) Net sales $ 8,650 Cost of goods sold 7,260 Depreciation 415 Earnings before interest and taxes $ 975 Interest paid 84 Taxable income $ 891 Taxes 312 Net income $ 579 Windswept, Incorporated 2021 and 2022 Balance Sheets (in millions) 2021 2022 2021 2022 Cash $ 130 $ 160 Accounts payable $ 970 $ 1,135 Accounts receivable 800 700 Long-term debt 1,000 1,200 Inventory 1,510 1,545 Common stock 3,140 2,950 Total $ 2,440 $ 2,405 Retained earnings 540 790 Net fixed assets 3,210 3,670 Total assets $ 5,650 $ 6,075 Total liabilities & equity $ 5,650 $ 6,075 What is the quick ratio for 2022?
The formula for determining the number of times interest charges earned is Income before Income Tax + Interest Expense/Interest expense. Assume that the Interest Expense for Shine, Inc. for the Year Ended December 31, 2011, is $25,000. Assume further that Income before Income Taxes is $395,000, Income Taxes is $150,000 and Net Income is $245,000. What is the number of times interest charges are earned for Shine, Inc. for the Year Ended December 31, 2011? Group of answer choices 9.8 10.8 16.8 $25,000
Use the following information to answer this question: Windswept, Incorporated 2021 Income Statement ($ in millions) Net sales $ 11,750 Cost of goods sold 7,750 Depreciation 475 Earnings before interest and taxes $ 3,525 Interest paid 92 Taxable income $ 3,433 Taxes 721 Net income $ 2,712 Windswept, Incorporated 2020 and 2021 Balance Sheets ($ in millions) 2020 2021 2020 2021 Cash $ 220 $ 250 Accounts payable $ 1,660 $ 1,595 Accounts received 1,030 930 Long-term debt 1,030 1,350 Inventory 1,880 1,675 Common stock 3,280 3,000 Total $ 3,130 $ 2,855 Retained earnings 610 860 Net fixed assets 3,450 3,950 Total assets $ 6,580 $ 6,805 Total liabilities & equity $ 6,580 $ 6,805 What is the fixed asset turnover for 2021?