In: Accounting
8. AA 12-2 Comparative Analysis LO A1
Key figures for Apple and Google follow.
Apple | |||||||||||||||||||
$ 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?