Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Google LLC (Alphabet Inc.) reports the following figures for its Google Services segment for the year ended December 31, 2023: Income Statement Sales revenue: $150,000,000
Google LLC (Alphabet Inc.) reports the following figures for its Google Services segment for the year ended December 31, 2023:
Income Statement
- Sales revenue: $150,000,000
- Cost of goods sold: $75,000,000
- Gross margin: $75,000,000
- Operating expenses:
- R&D expenses: $20,000,000
- Sales and marketing expenses: $15,000,000
- Operating income: $40,000,000
- Nonoperating items:
- Interest expense: $3,000,000
- Loss on investment: $1,000,000
- Net income: $36,000,000
Balance Sheet
- Assets:
- Cash: $20,000,000
- Accounts receivable: $10,000,000
- Inventory: $15,000,000
- Property, plant, and equipment: $55,000,000
- Total assets: $100,000,000
- Liabilities:
- Accounts payable: $5,000,000
- Short-term loans: $10,000,000
- Long-term debt: $20,000,000
- Stockholders' equity: $65,000,000
- Total liabilities and stockholders' equity: $100,000,000
Requirements:
- Calculate the gross profit margin.
- Determine the operating profit margin.
- Compute the return on equity (ROE).
- Calculate the current ratio.
- Find the times interest earned ratio.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started