Key figures for the recent two years of both Apple and Google follow.

Required
1. Compute profit margins for (a) Apple and (b) Google for the two years of data shown.
2. Which company is more successful on the basis of profit margin? Explain.
3. Compute the current ratio for both years for both companies.
4. Which company has the better ability to pay short-term obligations according to the current ratio?
5. Analyze and comment on each company€™s current ratios for the past two years.
6. How do Apple€™s and Google€™s current ratios compare to their industry (assumed) average ratio of 2.0?

Transcribed Image Text:

Apple Prior Year Google Current Year Prior Year ($ millions) Current Year $10,737 $ 41,733 Net income. $ 37,037 170,910 $12,920 59,825 Net sales.. 50,175 156,508