Chapter 9, Problem 2BTN

Key figures for Apple and Google follow.

	Apple			Google
$ millions	Current Year	One Year Prior	Two Years Prior	Current Year	One Year Prior	Two Years Prior
Net income	$ 53,394	$39,510	$ 37,037	$ 16,348	$ 14,136	$ 12,733
Income taxes	19,121	13,973	13,118	3,303	3,639	2,739
Interest expense	733	384	136	104	101	81

Required

1. Compute times interest earned for the three years’ data shown for each company.
2. Comment on which company appears stronger in its ability to pay interest obligations. Assume an industry average of 10.