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8. AA 12-2 Comparative Analysis LO A1 Key figures for Apple and Google follow. Apple Google...

8. AA 12-2 Comparative Analysis LO A1

Key figures for Apple and Google follow.

Apple Google
$ millions Current Year 1 Year Prior 2 Years Prior Current Year 1 Year Prior 2 Years Prior
Operating cash flows $ 63,598 $ 65,824 $ 81,266 $ 37,091 $ 36,036 $ 26,572
Total assets 375,319 321,686 290,345 197,295 167,497 147,461


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?

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