Key comparative figures ($ millions) for both Apple and Google appear below:

Key Figure	Apple	Google
Liabilities and Equity	$290,479	$147,461
Net Income	53,394	16,348
Revenues and Sales	233,715	74,989

What is the total amount invested in (i) Apple and (ii) Google?

Total amount invested= Liabilities (outsiders)+ Equity (insiders)

$290,479

$147, 461

What is the return on assets for (i) Apple and (ii) Google? Apples beginning year assets equal $2331,839 (in millions) and Googles beginning year assets equal $129,187 (in millions)

Return on assets= Net income/Average assets

i.

Net Income	$53,394
Beginning of the year assets	$231,839
Ending of the year Assets	$290,749
Average assets (Beginning+Ending)/2	$261,294
Return on Assets	20%

ii.

Net Income	$16,348
Beginning of the year assets	$129,187
Ending of the year Assets	$147,461
Average assets (Beginning+Ending)/2	$138,324
Return on Assets	12%

1. Compute the debt ration for each of the fiscals years (2015 and 2014) for each company (report ratio in percent and round it to one decimal)

2. Which of the two companies has the higher degree of financial leverage? What does this imply?