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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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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