This assignment is based on Google Inc.s most recent annual financial statements. You can obtain the firms financial statements from the firms corporate web site at https://investor.google.com or from the SEC at http://www.sec.gov/edgar.shtml. Unless otherwise indicated, all questions relate to the current periods financial statements. Please do not copy and paste information from the firms annual report but respond with your assessment.

1. How much cash did Google generate from (be sure to indicate whether the amount is an inflow or an outflow of cash) from:

a. Operations

b. Investing

c. Financing

2. What is the amount of the difference between cash flow from operations and net income? Is it a positive amount?

3. In the investing section, which single activity (not dollar amount but activity) was the largest:

a. Source of cash:

b. Use of cash:

4. In the financing section, which single activity (not dollar amount but activity) was the largest:

a. Source of cash

b. Use of cash

5. a. Compute the following ratios for Google. The ratios are defined on page 1,298 of the text.

Ratio	2014	2013
Cash flow to sales
Cash return on assets
Cash return on shareholders equity
Cash flow per share

b. What conclusions can you draw based on your analysis? For this question you need to pull together the information that you calculated. Please do not tell me which ratios increased or decreased but focus on what the information means.

Use Google's 2014 annual report provided at this linkhttps://investor.google.com/pdf/20141231_google_10K.pdf