Key comparative figures ($ millions) for both Apple and Google follow. Apple Google Key Figure Current Year Prior Year Current Year Prior Year Liabilities + Equity $375,319 $321,686 $197,295 $167,497 Net income 48,351 45,687 12,662 19,478 Revenues 229,234 215,639 110,855 90,272 Required: 1. What is the total amount of assets invested for the current year in (a) Apple and (b) Google? 2. What is the current-year return on assets for (a) Apple and (b) Google? 3. How much are current-year expenses for (a) Apple and (b) Google? 4-a. Is the current-year return on assets better than the 10% return of competitors for Apple? 4-b. Is the current-year return on assets better than the 10% return of competitors for Google? 5. Relying only on return on assets, would we invest in Google or Apple?
Key comparative figures ($ millions) for both Apple and Google follow. Apple Google Key Figure Current Year Prior Year Current Year Prior Year Liabilities + Equity $375,319 $321,686 $197,295 $167,497 Net income 48,351 45,687 12,662 19,478 Revenues 229,234 215,639 110,855 90,272 Required: 1. What is the total amount of assets invested for the current year in (a) Apple and (b) Google? 2. What is the current-year return on assets for (a) Apple and (b) Google? 3. How much are current-year expenses for (a) Apple and (b) Google? 4-a. Is the current-year return on assets better than the 10% return of competitors for Apple? 4-b. Is the current-year return on assets better than the 10% return of competitors for Google? 5. Relying only on return on assets, would we invest in Google or Apple?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Key comparative figures ($ millions) for both Apple and Google follow.
| Apple | |||||
| Key Figure | Current Year | Prior Year | Current Year | Prior Year | |
| Liabilities + Equity | $375,319 | $321,686 | $197,295 | $167,497 | |
| Net income | 48,351 | 45,687 | 12,662 | 19,478 | |
| Revenues | 229,234 | 215,639 | 110,855 | 90,272 | |
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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