a. Is Google generating positive cash flow from its operations? b. How much did Google invest...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
a. Is Google generating positive cash flow from its operations? b. How much did Google invest in new capital expenditures over the period? c. Describe Google's sources of financing in the financial markets over the period? d. Based solely on the cash flow statements for 2011 through 2014, write a brief narrative that describes the major activities of Google's management team over the period. A (US$ millions) Net income B Depreciation Amortization Deferred taxes B D E 12/31/2014 12/31/2013 12/31/2012 12/31/2011 $14,432 $12,903 $10,785 $9,758 3524 2780 1994 1376 1472 1159 907 480 (125) (483) (235) 386 5 Noncash items 2687 2215 2272 2004 7 Changes in working capital 3 Cash from operating activities Capital expenditures 373 (36) 915 689 $22,363 $18,538 $16,638 $14,693 $(10,977) $(7,312) $(3,229) $(3,457) 0 Other investing cash flow items (10,088) (6,357) (9,760) (15,620) 1 Cash from investing activities $(21,065) $(13,669) $(12,989) $(19,077) 2 Interest and financing cash flow items $(1,425) $(290) $(108) $86 3 Total cash dividends paid 0 0 0 0 4 Issuance (retirement) of stock 1 0 0 0 5 Issuance (retirement) of debt (22) (569) 1322 758 6 Cash from financing activities 7 Foreign exchange effects 8 Net change in cash $(1,446) $(859) $1,214 $844 $(434) $(3) $5 $24 $(582) $4,007 $4,868 $(3,516) a. Is Google generating positive cash flow from its operations? b. How much did Google invest in new capital expenditures over the period? c. Describe Google's sources of financing in the financial markets over the period? d. Based solely on the cash flow statements for 2011 through 2014, write a brief narrative that describes the major activities of Google's management team over the period. A (US$ millions) Net income B Depreciation Amortization Deferred taxes B D E 12/31/2014 12/31/2013 12/31/2012 12/31/2011 $14,432 $12,903 $10,785 $9,758 3524 2780 1994 1376 1472 1159 907 480 (125) (483) (235) 386 5 Noncash items 2687 2215 2272 2004 7 Changes in working capital 3 Cash from operating activities Capital expenditures 373 (36) 915 689 $22,363 $18,538 $16,638 $14,693 $(10,977) $(7,312) $(3,229) $(3,457) 0 Other investing cash flow items (10,088) (6,357) (9,760) (15,620) 1 Cash from investing activities $(21,065) $(13,669) $(12,989) $(19,077) 2 Interest and financing cash flow items $(1,425) $(290) $(108) $86 3 Total cash dividends paid 0 0 0 0 4 Issuance (retirement) of stock 1 0 0 0 5 Issuance (retirement) of debt (22) (569) 1322 758 6 Cash from financing activities 7 Foreign exchange effects 8 Net change in cash $(1,446) $(859) $1,214 $844 $(434) $(3) $5 $24 $(582) $4,007 $4,868 $(3,516)
Expert Answer:
Answer rating: 100% (QA)
ANSWER a Is Google generating positive cash flow from its operations To determine if Google is generating positive cash flow from its operations we lo... View the full answer
Related Book For
Financial Management Principles and Applications
ISBN: 978-0134417219
13th edition
Authors: Sheridan Titman, Arthur J. Keown, John H. Martin
Posted Date:
Students also viewed these finance questions
-
The cash flow statements for retailing giant Big-Box, Inc., spanning the period 2013-2016 are as follows: Answer the following questions using the information found in these statements: a. Does...
-
Goggle, Inc. is an Internet firm that has experienced a period of very rapid growth in revenues over the period 20072010. The cash flow statements for Goggle, Inc. spanning the period are as follows:...
-
Fletcher Fabrication, Inc., produces three products by a joint production process. Raw materials are put into production in Department X, and at the end of processing in this department, three...
-
Is the character of partnership income/gains and expenses/losses determined at the partnership or partner level? Why?
-
Swanson plc has the following trading investment portfolio on December 31, 2019. All of the investments were purchased in 2019. In 2020, Swanson completed the following investment transactions. March...
-
Plaintiff sought to enforce against the defendant estate a promise made by his now-deceased uncle to pay Plaintiff a sum of money if Plaintiff refrained from the use of alcohol and tobacco for a...
-
On May 1, 2010, Newby Corp. issued $600,000, 9%, 5-year bonds at face value. The bonds were dated May 1, 2010, and pay interest semiannually on May 1 and November 1. Financial statements are prepared...
-
Crystal Corporation earned net income of $ 9 0 0 , 0 0 0 in 2 0 2 3 . It has a complex capital structure as follows: 1 2 , 0 0 0 shares outstanding of 8 % , $ 1 0 0 preferred stock, and 1 7 0 , 0...
-
The following information has been extracted from a hotel's food de- partment for the months of August and September. Departmental Divisions Room service Dining room Bar-Lounge Coffee shop Banquets...
-
A gig refers to a single project or task that an individual completes for pay, and individuals who complete gigs are often referred to as gig workers. Examples of gigs range from driving for Uber and...
-
Explain what will happen if the expectation of rising prices on New York and falling prices in London becomes widespread. Might expectations become self-fulfilling? Property investors are looking...
-
New Seasons Market is an Oregon-based grocery store chain founded in 2000 by three families who set the goal of rethinking what a grocery store could be. The store is known for offering local and...
-
After you have studied Economics in the News on pp. 204205, answer the following questions. a. What changes in the interest rate and the quantity of M2 occurred between 2007 and 2017? b. When the...
-
Costco is known as a desirable employer. This is partly because it pays an average of $21 per hour to employees in retail environments where $10.50 is the average hourly pay. Costco also covers 90%...
-
Grandson steel ltd. has employed 15% debt of $1,200,000 in its capital structure. The net operating income of the firm is $500,000 and has an equity capitalization ratio of 16%. Assuming that there...
-
If 2 5 9 - k 5 8 = 2 5 8 , what is the value of k?
-
What is the "behavioral view" of market efficiency?
-
What is the rationale for using the MIRR as opposed to the IRR decision criterion? Describe the fundamental shortcoming of the MIRR method.
-
Describe net operating working capital, and explain how changes in this quantity affect an investment proposal's cash flows.
-
Label each of the following statements true, false, or uncertain. Explain briefly. a. If the nominal exchange rate is fixed, the real exchange rate is fixed. b. When domestic inflation equals foreign...
-
Consider a country operating under fixed exchange rates. The IS curve is given by equation (20.1) a. Explain the term \(\left(i^{*}-\pi^{e}ight)\). Why does the foreign nominal interest rate appear...
-
Policy choices when the real exchange rate is "too high" and the nominal exchange rate is fixed An overvalued real exchange rate is a rate such that domestic goods are too expensive relative to...
Study smarter with the SolutionInn App