The following data are for the 2018 fiscal year of Alphabet, Inc., which is the parent company

Question:

The following data are for the 2018 fiscal year of Alphabet, Inc., which is the parent company of Google, Inc., and Facebook, Inc. All dollar amounts are in thousands.


Required
a. Calculate the EBIT for each company.
b. Calculate each company’s debt-to-assets ratio, current ratio, and the times-interest-earned ratio.
c. Calculate each company’s return-on-assets ratio using EBIT instead of net earnings. Calculate each company’s return-on-equity ratio using net earnings.
d. Alphabet reported interest expense of $114 million, before taxes. What was its after-tax interest expense in dollars?

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