Question
Key figures for Apple and Google follow. Apple Google $ millions Current Year One Year Prior Two Years Prior Current Year One Year Prior Two
Key figures for Apple and Google follow.
Apple | ||||||||||||||||||||
$ millions | Current Year | One Year Prior | Two Years Prior | Current Year | One Year Prior | Two Years Prior | ||||||||||||||
Net income | $ | 48,351 | $ | 45,687 | $ | 53,394 | 12,662 | 19,478 | 16,348 | |||||||||||
Income taxes | 15,738 | 15,685 | 19,121 | 14,531 | 4,672 | 3,303 | ||||||||||||||
Interest expense | 2,323 | 1,456 | 733 | 109 | 124 | 104 | ||||||||||||||
Required: 1. Compute times interest earned for the three years' data shown for each company. 2. In the current year, and using times interest earned, which company appears better able to pay interest obligations? 3. In the current year, and using times interest earned, is the company in a good or bad position to pay interest obligations for (a) Apple, and (b) Google? Assume an industry average of 10.
Compute times interest earned for each of the three years shown. (Round your answer to 2 decimal places.)
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