Alphabet (formerly known as Google) (GOOG) is a technology company that offers users Internet search and e-mail services. Google also developed the Android operating system for use with cell phones and other mobile devices. The following data (in millions) were adapted from a recent financial statement of Alphabet.

1. Compute the debt ratio for Years 1 and 2. Round to one decimal place.
2. Given your answer to part (1), what is the ratio of stockholders' equity to total assets? Round to one decimal place.
3. Compute the ratio of liabilities to stockholders' equity. Round to one decimal place.
4. Are Google's operations financed primarily with liabilities or equity?
5. Comparing Years 1 and 2, should creditors feel more or less safe in Year 2?
6. With a market price of $526.40, compute the price-earnings ratio for Year 2.
7. With a market price of $560.36, compute the price-earnings ratio for Year 1.
8. Compare the results from parts (6) and (7). Comment on any differences.

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Year 2 Year 1 Total assets Total liabilities Total stockholders' equity $131,133 26,633 $110,920 23,611 87,309 19.07 21.02