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34 Chapter 14 Long-Term Liabilities Accounting Analysis COMPANY ANALYSIS A1 A2 APPLE AA 14-1 Use Apple's financial statements in Appendix A to answer the following.

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34 Chapter 14 Long-Term Liabilities Accounting Analysis COMPANY ANALYSIS A1 A2 APPLE AA 14-1 Use Apple's financial statements in Appendix A to answer the following. 1. Identify Apple's long-term debt as reported on its balance sheet at (a) September 30, 201 () September 24, 2016. 2. Calculate the percentage change in long-term debt from September 24, 2016, to September 30, 2 If Apple's reported long-term debt continues on the current trend, do we expect total interest exp to increase or decrease? AA 14-2 Key figures for Apple and Google follow. COMPARATIVE ANALYSIS A3 $ millions Apple Current Year Prior Year APPLE GOOGLE Total assets.. Total liabilities Total equity $375,319 241,272 134,047 $321.686 193,437 128.249 Google Current Year Prior Year $197.295 $167.497 44.793 28,461 152,502 139,036 Required 1. Compute the debt-to-equity ratios for Apple and Google for both the current year and the prior year, 2. Use the ratios from part to determine which company's financing initial 3. Is its debt-to-equity ratio more risky or 34 Chapter 14 Long-Term Liabilities Accounting Analysis COMPANY ANALYSIS A1 A2 APPLE AA 14-1 Use Apple's financial statements in Appendix A to answer the following. 1. Identify Apple's long-term debt as reported on its balance sheet at (a) September 30, 201 () September 24, 2016. 2. Calculate the percentage change in long-term debt from September 24, 2016, to September 30, 2 If Apple's reported long-term debt continues on the current trend, do we expect total interest exp to increase or decrease? AA 14-2 Key figures for Apple and Google follow. COMPARATIVE ANALYSIS A3 $ millions Apple Current Year Prior Year APPLE GOOGLE Total assets.. Total liabilities Total equity $375,319 241,272 134,047 $321.686 193,437 128.249 Google Current Year Prior Year $197.295 $167.497 44.793 28,461 152,502 139,036 Required 1. Compute the debt-to-equity ratios for Apple and Google for both the current year and the prior year, 2. Use the ratios from part to determine which company's financing initial 3. Is its debt-to-equity ratio more risky or

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