Compute common-size percents for each of the companies

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Reference no: EM132956493

Problem - Key figures for Apple and Google follow.

$ millions

Apple

Google

Cash and equivalents

$20,289

$10,715

Accounts receivable, net

17,874

18,336

Inventories

4,855

749

Retained earnings

98,330

113,247

Cost of sales

141,048

45,583

Revenues

229,234

110,855

Total assets

375,319

197,295

Required -

1. Compute common-size percents for each of the companies using the data provided.

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

3. Which company has a higher gross margin ratio on sales?

Reference no: EM132956493

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