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Key figures for Apple and Google follow. $ millions Cash and equivalents Accounts receivable, net Inventories Retained earnings Cost of sales Revenues Total assets

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Key figures for Apple and Google follow. $ millions Cash and equivalents Accounts receivable, net Inventories Retained earnings Cost of sales Revenues Total assets Required: Apple $ 48,844 22,926 4,106 Google $ 18,498 25,326 999 45,898 152,122 161,782 71,896 260,174 161,857 338,516 275,909 1. Compute common-size percents for each company using the data given. 2. If Google paid a dividend, would retained earnings as a percent of total assets increase or decrease? 3. Which company has the better gross margin ratio on sales?

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