a. 1. For net income and net cash provided by operating activities, perform a horizontal common size analysis. Use 2006 as the base.

2. Comment.

b. Why is depreciation and amortization of property and equipment added back to net income?

c. Investing activities—is there an indication of external growth?

d. Financing activities—speculate on why there was a public offering (2006), considering the net cash provided by operating activities.

e. Identify items that indicate that Google is a growth company.

f. Supplemental disclosures of cash flow information—why list the issuance of equity in connect with acquisitions, net?