Question
AA 10-2 Comparative Analysis LO A3 Key figures for Apple and Google follow. AppleGoogle$ millionsCurrent YearPrior YearCurrent YearPrior YearTotal assets$375,319$321,686$197,295$167,497Total liabilities241,272193,43744,79328,461Total equity134,047128,249152,502139,036 Required: 1. Compute
AA 10-2 Comparative Analysis LO A3
Key figures for Apple and Google follow.
AppleGoogle$ millionsCurrent YearPrior YearCurrent YearPrior YearTotal assets$375,319$321,686$197,295$167,497Total liabilities241,272193,43744,79328,461Total equity134,047128,249152,502139,036
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 we computed in part 1 to determine which company's financing structure is least risky.
3.Is its debt-to-equity ratio more risky or less risky compared to the industry (assumed) average of 0.5 for (a) Apple and (b) Google?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
