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Google LLC reports the following as of December 31, 2022: Balance Sheet: Cash: $30 billion Marketable Securities: $50 billion Accounts Receivable: $20 billion Inventories: $1

Google LLC reports the following as of December 31, 2022:

  • Balance Sheet:
    • Cash: $30 billion
    • Marketable Securities: $50 billion
    • Accounts Receivable: $20 billion
    • Inventories: $1 billion
    • Total Current Assets: $101 billion
    • Property, Plant & Equipment: $80 billion
    • Total Assets: $300 billion
  • Liabilities:
    • Accounts Payable: $25 billion
    • Short-term Debt: $10 billion
    • Long-term Debt: $45 billion
    • Shareholders’ Equity: $220 billion
  • Income Statement:
    • Sales: $200 billion
    • Cost of Goods Sold: $100 billion
    • Operating Expenses: $60 billion
    • Interest Expense: $2 billion
    • Tax Rate: 22%

Requirements:

  1. Compute the quick ratio.
  2. Calculate the return on assets (ROA).
  3. Determine the equity ratio.
  4. Assess the net profit margin.

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