Question

from its website porting policy te Fost Forward 4. Access Apple's annual report for Apples annual report for fiscal years ending after September 26, 2015, from (apple.com) or the SEC'S EDGAR database (SEC.gov). Has Apple changed its reporting garding segment information? Explain. BTN SES COMPARATIVE NALYSIS BTN 7-2 Key figures for Apple and Google follow ($ millions). One Year Prior Current Year Segment Revenue Apple Segment Segment Revenue Segment Assets Segment Assets PPLE DOGLE Domestic... International . . . . . . . . . . . . . . . . $ 81,732 151,983 $ 9,108 $12,022 11,762 $ 68,909 113,886 12,394 Current Year One Year Prior Google Segment Segment Revenue Segment Assets Segment Revenue Segment Assets Domestic International......... $34,810 40,179 $43,686 13,661 $29,482 36,519 $37.421 13,110 Required 1. Compute the ratio of segment revenue divided by segment assets for each of the segments of Apple and Google for the most recent year shown. 2. Interpret and comment on your results from part 1.

Answer 1

Ans. 1: Ratio of segment revenue divided by segment assets are as follows of current year:

Apple domestic segment = 81732/12022= 6.80

Apple international segment = 151983/11762 = 12.92

Google domestic segment = 34810/43686= 0.80

Google international segment = 40179/13661= 2.94

Ans. 2 : Apple segment is far better than Google segment in both domestic and international segment. As Apple segment revenue to assets ratio is good as compared to Google segment.