Compute common-size percents for each company

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Reference no: EM133095425

Question - Key figures for Apple and Google follow.

$ millions

Apple

Google

Cash and equivalents

$48,844

$18,498

Accounts receivable, net

22,926

25,326

Inventories

4,106

999

Retained earnings

45,898

152,122

Cost of sales

161,782

71,896

Revenues

260,174

161,857

Total assets

338,516

275,909

Required -

1. Compute common-size percents for each company using the data given.

2. If Google paid a dividend, would retained earnings as a percent of total assets increase or decrease?

3. Which company has the better gross margin ratio on sales?

Reference no: EM133095425

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