Key comparative figures ($ millions) for both Apple and Google follow.     Apple   Google Key Figure Current Year Prior Year   Current Year Prior Year Liabilities + Equity $375,319 $321,686   $197,295 $167,497 Net income 48,351 45,687   12,662 19,478 Revenues 229,234 215,639   110,855 90,272   Required: 1. What is the total amount of assets invested for the current year in (a) Apple and (b) Google? 2. What is the current-year return on assets for (a) Apple and (b) Google? 3. How much are current-year expenses for (a) Apple and (b) Google? 4-a. Is the current-year return on assets better than the 10% return of competitors for Apple? 4-b. Is the current-year return on assets better than the 10% return of competitors for Google? 5. Relying only on return on assets, would we invest in Google or Apple?

Quickbooks Online Accounting
3rd Edition
ISBN:9780357391693
Author:Owen
Publisher:Owen
Chapter10: Financial Statements And Reports
Section: Chapter Questions
Problem 3.3C
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Key comparative figures ($ millions) for both Apple and Google follow.
 

  Apple   Google
Key Figure Current Year Prior Year   Current Year Prior Year
Liabilities + Equity $375,319 $321,686   $197,295 $167,497
Net income 48,351 45,687   12,662 19,478
Revenues 229,234 215,639   110,855 90,272
 


Required:
1. What is the total amount of assets invested for the current year in (a) Apple and (b) Google?
2. What is the current-year return on assets for (a) Apple and (b) Google?
3. How much are current-year expenses for (a) Apple and (b) Google?
4-a. Is the current-year return on assets better than the 10% return of competitors for Apple?
4-b. Is the current-year return on assets better than the 10% return of competitors for Google?
5. Relying only on return on assets, would we invest in Google or Apple?

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