Google Inc. is a well-known Internet company. The following data are from its financial statement for the year ended December 31, 2011 (in millions):

1. Prepare Google€™s income statement for the year. The final three lines of the income statement were labeled as income before taxes, provision for income taxes, and net income.
2. Compute the change in retained earnings, and use that to determine the amount of dividends paid.
3. Comment briefly on the relative size of the cashdividend.

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Google, Inc. Rctaincd carmings, end of year$37,605 Revenues Net interest income Provision for income taxes 37,905 584 2,589 Dividends paid Retained carnings, beginning of year Operating costs and expenses Cash 27,868 26,163 9,983