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Key figures for Apple and Google follow. Apple One Year Two Years Prior $45,687 15,685 1,456 Google One Year Two Years $ millions Current Year Current Year 12,662 Prior Net income Income taxes Interest expense Prior $53,394 Prior 19,478 4,672 124 $48,351 15,738 16,348 19,121 733 14,531 109 3,303 104 2,323 Required: 1. Compute times interest earned for the three years' data shown for each company. 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.

Key figures for Apple and Google follow. Apple One Year Two Years Prior $45,687 15,685 1,456 Google One Year Two Years $ millions Current Year Current Year 12,662 Prior Net income Income taxes Interest expense Prior $53,394 Prior 19,478 4,672 124 $48,351 15,738 16,348 19,121 733 14,531 109 3,303 104 2,323 Required: 1. Compute times interest earned for the three years' data shown for each company. 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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Key figures for Apple and Google follow. Apple One Year Two Years Prior $45,687 15,685 1,456 Google One Year Two Years $ millions Current Year Current Year 12,662 Prior Net income Income taxes Interest expense Prior $53,394 Prior 19,478 4,672 124 $48,351 15,738 16,348 19,121 733 14,531 109 3,303 104 2,323 Required: 1. Compute times interest earned for the three years' data shown for each company. 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.
Transcribed Image Text:Key figures for Apple and Google follow. Apple One Year Two Years Prior $45,687 15,685 1,456 Google One Year Two Years $ millions Current Year Current Year 12,662 Prior Net income Income taxes Interest expense Prior $53,394 Prior 19,478 4,672 124 $48,351 15,738 16,348 19,121 733 14,531 109 3,303 104 2,323 Required: 1. Compute times interest earned for the three years' data shown for each company. 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.
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