Google Inc. is a technology company that offers users Internet search and e-mail services.
Google also developed the Android operating system for use with cell phones and other mobile devices. The following data (in millions) were adapted from a recent financial statement of Google.

1. Compute the ratio of liabilities to total assets for Years 1 and 2. Round to one decimal
place.
2. Given your answer to part (1), what is the ratio of stockholders€™ equity to total assets? Round to one decimal place.
3. Compute the ratio of liabilities to stockholders€™ equity. Round to one decimal place.
4. Are Google€™s operations financed primarily with liabilities or equity?
5. Comparing Years 1 and 2, should creditors feel more or less safe in Year 2?
6. With a market price of $762.10, compute the price-earnings ratio for Year 2.
7. With a market price of $596.33, compute the price-earnings ratio for Year 1.
8. Compare the results from parts (6) and (7). Comment on anydifferences.

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Year 2 Year 1 Total assets Total liabilities Total stockholders' equity Earnings per share $93,798 22,083 71,715 32.81 $72,574 14,429 58,145 29.76