Key figures for Apple and Google follow.

Required

1. Compute the recent two years’ cash flow on total assets ratios for Apple and Google.

2. For the current year, which company has the better cash flow on total assets ratio?

3. For the current year, does cash flow on total assets outperform or underperform the industry (assumed) average of 15% for 

(a) Apple and 

(b) Google?

Transcribed Image Text:

Apple Google $ millions Current Year 1 Year Prior 2 Years Prior Current Year 1 Year Prior 2 Years Prior Operating cash flows $ 69,391 $ 77,434 $ 64,225 $ 54,520 $ 47,971 $ 37,091 Total assets ... 338,516 365,725 375,319 275,909 232,792 197,295