Key figures for Apple and Google follow.

Required
1. Compute common-size percents for each of the companies using the data provided. (Round percents to one decimal.)
2. Which company retains a higher portion of cumulative net income in the company?
3. Which company has a higher gross margin ratio on sales?
4. Which company holds a higher percent of its total assets as inventory?

Transcribed Image Text:

Google ($ millions) Apple $ 10,746 Cash and equivalents $14,778 Accounts receivable, net 10,930 7,885 Inventories 791 505 101,289 Retained earnings 48,342 Cost of sales 87,846 20,634 Revenues 156,508 50,175 Total assets 176,064 93,798