FSA 09-2 Comparative Analysis LO A1

Key figures for Apple and Google follow.

$ millions Apple Google

Current Year One Year Prior Two Years Prior Current Year One Year Prior Two Years 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

Required:

FSA 09-2 Comparative Analysis LO A1 Key figures for Apple and Google follow. Kequired: 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 obllgations? 3. In the current year, and using times interest earned, is the company in a good or bad position to pay interest obligations for (o) Apple, and (b) Google? Assume an industry average of 10. Complete this question by entering your answers in the tabs below. Compute times interest earned for the three years' data shown for each company. Note: Round your answers to 2 decimal places