The following data are for the 2016 fiscal year ofAlphabet, Inc., which is the parent company ofGoogle, Inc., and Facebook, Inc.All dollar amounts are in thousands.
Account Title | Alphabet, Inc. | Facebook, Inc. |
Current assets | $105,408 | $34,401 |
Total assets | ? 167,497 | 64,961 |
Current liabilities | ?? 16,756 | 2,875 |
Total liabilities | ??? 28,461 | 5,767 |
Stockholders’ equity | 139,036 | 59,194   |
Interest expense | 124 | 10 Â Â |
Income tax expense | 4,672 | 2,301 |
Net income | 19,478 | 10,217 |
Required
- Calculate the EBIT for each company.
- Calculate each company’s debt-to-assets ratio, current ratio,and the times-interest-earned ratio.
- Calculate each company’s return-on-assets ratio using EBITinstead of net earnings. Calculate each company’s return-on-equityratio using net earnings.
- Alphabet reported interest expense of $124 million, beforetaxes. What was its after-tax interest expense in dollars?(Hint: You will need to compute its tax rate by dividingincome tax expense by earnings before taxes, which must becomputed.)
