Key figures for Apple and Google follow. Required 1. Compute times interest earned for the three years
Question:
Key figures for Apple and Google follow.
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.
Transcribed Image Text:
Apple Google Current One Year Two Years Current One Year Two Years $ mllons Year Prior Prior Year Prior Prior Net income $59,531 $48,351 $45,687 $30,736 $12,662 $19,478 Income taxes.. 13,372 15,738 15,685 4,177 14,531 4,672 Interest expense... 3,240 2,323 1,456 114 109 124
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Related Book For
Financial Accounting Information For Decisions
ISBN: 9781260705584
10th Edition
Authors: John J. Wild
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