Companies often budget selling expenses and general and administrative expenses (SGA) as a percentage of expected sales.

Required

1. For both Apple and Google, list sales (in dollars) and total selling expenses and general and administrative expenses (in dollars)for the 2017 and 2016 fiscal years. Use the financial statements in Appendix A.

2. Compute each company’s ratio of total selling expenses and general and administrative expenses to sales for the 2017 and 2016 fiscal years.

3. Which company (Apple or Google) spends more, as a percent of sales, on selling, general, and administrative expenses?