The following data are for the 2016 fiscal year of Alphabet, Inc., which is the parent...

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Accounting

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
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.)

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4.1 Ratings (514 Votes)

a EBIT of Alphabet Inc Net income Income tax expense Interest expense 19478 4672 124 24274 EBIT of Facebook Inc Net income Income tax expense Interest expense 10217 2301 10 12528 b For Alphabet Inc Debt to assets ratio See Answer

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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
Income tax expense	4,672	2,301
Net income	19,478	10,217