Question: Please answer this problem an please show your work! (Analyzing the cash flow statement) Goggle, Inc. is an Internet firm that has experienced a period
Please answer this problem an please show your work!
(Analyzing the cash flow statement) Goggle, Inc. is an Internet firm that has experienced a period of very rapid growth in revenues over the last four years. The cash flow statements for Goggle, Inc. spanning the period 2007-2010 are found below:
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| 12 Months Ending | |||
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| In Millions of U.S. Dollars | 12/31/2010 | 12/31/2009 | 12/31/2008 | 12/31/2007 |
| Net income | $ 4,000 | $ 3,000 | $ 1,500 | $ 400 |
| Depreciation expense | 1,000 | 600 | 300 | 150 |
| Changes in working capital | 600 | 50 | 50 | (250) |
| Cash from operating activities | $ 5,600 | $ 3,650 | $ 1,850 | $ 300 |
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| Capital expenditures | $(3,600) | $(7,000) | $(3,300) | $(2,000) |
| Cash from investing activities | $(3,600) | $(7,000) | $(3,300) | $(2,000) |
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| Interest and financing cash flow items | $ 400 | $ 600 | $ 0 | $ 5 |
| Total cash dividends paid | 0 | 0 | 0 | 0 |
| Issuance (retirement) of stock | 24 | 2,400 | 4,400 | 1,200 |
| Issuance (retirement) of debt | 0 | 0 | (2) | (5) |
| Cash from financing activities | $ 424 | $ 3,000 | $ 4,398 | $ 1,200 |
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| Net change in cash | $ 2,424 | $ (350) | $ 2,948 | $ (500) |
Answer the following questions using the information found in these statements:
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a. Is Goggle generating positive cash flow from its operations?
b. How much did Goggle invest in new capital expenditures over the last four years?
c. Describe Goggle
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