Examine the Google cash-flow statement on page 620. Suppose Google's operating activities used, rather than provided, cash.
Question:
Examine the Google cash-flow statement on page 620. Suppose Google's operating activities used, rather than provided, cash. Identify 3 things under the indirect method that could cause operating cash flows to be negative.
Google Inc. Consolidated Statement of Cash Flows (Adapted; in millions) Year Ended December 31, 2006 Cash Flows from Operating Activities Net income S 3,077 Adjus tments to reconcile net income to net cash provided by operating activities: Depreciation and am Change in assets and liabilities, net of acquired businesses 572 Accounts receivable Other current assets Accounts payable Accrued expenses and other liabilities Unearned revenue Income taxes paya ble Other, (624) (289) 95 292 31 398 29 Net cash provided by operating activities $ 3,581 Cash Flows from Investing Activities Purchases of property and equipment Purchases of investments Sales of investments Acquisitions of other companies S (1,903) (27,701) 23,107 402 Net cash used in inves ting activities (6,899) Cash Flows from Financing Activities Proceeds from issuance of common stock, net Other, net ct 2,384 582 2,966 20 332) 3,877 S 3,545 Net cash provided by financing activities Other, net Net increase (decrease) in cash and cash equivalents Cash and cash equiva lents at beginning of year. Cash and cash equiva lents at end of year
Step by Step Answer:
There are two method of computed cash flow from Operating Activities Direct Method and Indi...View the full answer
Financial Accounting
ISBN: 978-0135012840
7th edition
Authors: Walter T. Harrison, Charles T. Horngren
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