Comparative figures for Apple and Google follow.

Required

1. Compute total asset turnover for the most recent two years for Apple and Google using the data shown.

2. In the current year, which company is more efficient in generating net sales given total assets?

3. Does each company’s asset turnover under perform or outperform the industry (assumed) asset turnover of 0.5 for

(a) Apple

(b) Google?

Data from Google's

Transcribed Image Text:

Apple Google One Year Prior One Year Prlor Two Years Prior Two Years Prlor Current Year Current Year $ illions $290,345 $321,686 215,639 $197,295 110,855 Total assets.. Net sales... $167,497 90,272 $147,461 74,989 $375,319 229,234 233,715 Google Inc. (Alphabet Inc.) CONSOLIDATED BALANCE SHEETS (In millions, except share and par value amounts which are reflected in thousands, and par value per share amounts) As of As of December 31, 2016 December 31, 2017 Assets Current assets Cash and cash equivalents Marketable securities 10,715 91,156 12,918 73,415 101,871 Total cash, cash cquivalents, and marketable securities Accounts receivable, net of allowance of $467 and $674 Income taxes receivable, net ఒ6333 14,137 18,336 95 369 749 Imentory Other curre nt assets Total current assets 268 4,575 105,408 2.983 124,308 Non-marketable investments 5,878 383 7,813 680 Deferred income taxes 34,234 3,307 Property and equipment, net Intangible assets, net Goodwill Other non-curent assets 42,383 2,692 16,747 2,672 16,468 1,819 Total assets Liabilities and Stockholders' Equity 167,497 197,295 Current liabilities 2041 3,137 Accounts payable Accrued compensation and benefits Accrued expenses and other current liabilities 3,976 6,144 4,581 10,177 2,942 1,099 3,975 1,432 Accrued revenue share Dekred revenue Income taxes payable, net Total current liabilities 554 881 16,756 24,183 Long-kerm debt Dekrred evenue, non-current 3,935 202 3,969 340 Income tases payable, non-current Deferred income taxes 4,677 12,812 430 226 Other long-term liabilities Total liabilities 2,665 28,461 3,059 44,793 Commitments and contingencies Stockholders' equity: Comertible preferred stock, $O D0 1 par value per share, 100,000 shares authorized; no shares issued and outstanding Class A and Class B common stock, and Class C capital stock and additional paid-in capital, S0.001 par value per share: 15,000.000 shares authorized (Class A 9,000,000, Class B 3,000,000, Class C 3,000,000); 691,293 (Class A 296,992, Class B 47,437, Class C 346,864) and 694,783 (Class A 298,470, Class B 46,972, Class C 349,341) shares issued and outstanding Accumulated other comprehensive loss Retained carnings Total stockholders" equity Total liabilities and stockholders' equity 36,307 40,247 (2,402) (992) 105,131 113,247 139,036 152,502 197,295 167,497 "Google is part of Alphabet, but we loosely refer to Alphabet as "Google" because of its global familiarity and that Google provides 99% of Alphabet's S1 10,855 billion in revenues. Soe accompanying notes. Google Inc. (Alphabet Inc.) CONSOLIDATED BALANCE SHEETS (In millions, except share and par value amounts which are reflected in thousands, and par value per share amounts) As of As of December 31, 2016 December 31, 2017 Assets Current assets Cash and cash equivalents Marketable securities 10,715 91,156 12,918 73,415 101,871 Total cash, cash cquivalents, and marketable securities Accounts receivable, net of allowance of $467 and $674 Income taxes receivable, net ఒ6333 14,137 18,336 95 369 749 Imentory Other curre nt assets Total current assets 268 4,575 105,408 2.983 124,308 Non-marketable investments 5,878 383 7,813 680 Deferred income taxes 34,234 3,307 Property and equipment, net Intangible assets, net Goodwill Other non-curent assets 42,383 2,692 16,747 2,672 16,468 1,819 Total assets Liabilities and Stockholders' Equity 167,497 197,295 Current liabilities 2041 3,137 Accounts payable Accrued compensation and benefits Accrued expenses and other current liabilities 3,976 6,144 4,581 10,177 2,942 1,099 3,975 1,432 Accrued revenue share Dekred revenue Income taxes payable, net Total current liabilities 554 881 16,756 24,183 Long-kerm debt Dekrred evenue, non-current 3,935 202 3,969 340 Income tases payable, non-current Deferred income taxes 4,677 12,812 430 226 Other long-term liabilities Total liabilities 2,665 28,461 3,059 44,793 Commitments and contingencies Stockholders' equity: Comertible preferred stock, $O D0 1 par value per share, 100,000 shares authorized; no shares issued and outstanding Class A and Class B common stock, and Class C capital stock and additional paid-in capital, S0.001 par value per share: 15,000.000 shares authorized (Class A 9,000,000, Class B 3,000,000, Class C 3,000,000); 691,293 (Class A 296,992, Class B 47,437, Class C 346,864) and 694,783 (Class A 298,470, Class B 46,972, Class C 349,341) shares issued and outstanding Accumulated other comprehensive loss Retained carnings Total stockholders" equity Total liabilities and stockholders' equity 36,307 40,247 (2,402) (992) 105,131 113,247 139,036 152,502 197,295 167,497 "Google is part of Alphabet, but we loosely refer to Alphabet as "Google" because of its global familiarity and that Google provides 99% of Alphabet's S1 10,855 billion in revenues. Soe accompanying notes.