Question

Question: Key comparative figures (\( millions) for both Apple and Google follow.

Key Figure Apple Google

Liabilities + Equity . . . . . . . . . . . . \)290,479 $147,461

Net income . . . . . . . . . . . . . . . . . . 53,394 16,348

Revenues and sales . . . . . . . . . . . 233,715 74,989

Required 1. What is the total amount of assets invested in (a) Apple and (b) Google?

Short answer

The amount of assets invested by Apple is $290,479 and by Google is $147,461

Step-by-step solution

Amount of assets invested by Apple

According to the balance sheet equation, total assets of the company is always equal to the sum of liabilities and equity. So, amount of assets of Apple is equal to the sum of liabilities and equity of Apple.

Amount of Assets Invested by Google

Similarly, amount of assets of google is equal to the liabilities and equity of Google.