Refer to the balance sheet of Google in Appendix A. Does it use the direct write-off method
Question:
Refer to the balance sheet of Google in Appendix A. Does it use the direct write-off method or allowance method in accounting for its accounts receivable? What is the realizable value of its receivables balance as of December 31, 2015?
Google's balance sheet from Appendix A.
Google Inc. CONSOLIDATED BALANCE SHEETS (In millions, except share and par value amounts which are reflected in thousands, and par value per share amounts) As of December 31 2014 2015 Assets Current assets 16,549 56,517 Cash and cash equivalents 18,347 %24 Marketable securities 46,048 Total cash, cash equivalents, and marketable securities (including securities loaned of $4,058 and $4,531) 64,395 73,066 9,383 Accounts receivable, net of allowance of $225 and $296 11,556 Receivable under re verse repurchase agreements Income taxes receivable, net 875 450 591 1,903 Prepaid revenue share, expenses and other assets Total current assets 3,412 78,656 3,139 90,114 Prepaid revenue share, expenses and other assets, non-current Non-marketable investments 3,187 3,079 3,181 5,183 Deferred income taxes 176 251 Property and equipment, net Intangible assets, net 23,883 29,016 4,607 3,847 15,869 Goodwill 15,599 147,461 Total assets 129,187 Liabilities and Stockholders’ Equity Current liabilities Accounts payable 24 1,715 1,931 Short-term debt 2,009 3,069 3,225 3,539 Accrued compensation and benefits 4,768 2,329 Accrued expenses and other current liabilities Accrued revenue share 4,408 1,952 Securities lending payable 2,778 2,428 788 Deferred revenue 752 Income taxes payable, net 96 302 16,779 19,310 Total current liabilities Long-term debt Deferred revenue, non-current 1,995 3,228 104 151 3,340 3,663 Income taxes payable, non-current Deferred income taxes 758 189 Other long-term liabilities Commitments and contingencies (Note 11) 1,118 1,822 Stockholders' equity: Convertible preferred stock, $0.001 par value per share; 100,000 shares authorized, no shares issued and outstanding; 0.5 shares authorized, no shares issued and outstanding Class A and Class B common stock, and Class C capital stock and additional paid-in capital, S0.001 par value per share: 15,000,000 shares authorized (Class A 9,000,000, Class B 3,000,000, Class C 3,000,000); 680,172 (Class A 286,560, Class B 53,213, Class C 340,399), and par value of $680 (Class A $287, Class B $53, Class C $340); and 1.5 shares authorized (Class A 0.5, Class B 0.5, Class C0.5); 0.3 (Class A 0.1, Class B 0.1, Class CO.1), and par value of $0, shares issued and outstanding Accumulated other comprehensive income (loss) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 28,767 31,313 (1,874) 27 75,066 90,892 103,860 120,331 129,187 147,461 2$
Step by Step Answer:
Google uses the allowance method to account for doubtful ...View the full answer
Fundamental Accounting Principles
ISBN: 978-1259536359
23rd edition
Authors: John Wild, Ken Shaw, Barbara Chiappett
Related Video
This video explains the basic understanding of a group. The term control is acquired when a parent company acquires more than 50% voting rights of subsidiaries. We have covered the basic structure of the consolidated balance sheet, with multiple scenarios of 100% and partial acquisitions at the start and during an accounting period. Also, goodwill and Non-controlling interest are covered in detail
Students also viewed these Cost Accounting questions
-
Refer to the balance sheet of Apple in Appendix A. Does it use the direct write-off method or allowance method in accounting for its Accounts Receivable? What is the realizable value of its...
-
Refer to the balance sheet of Arctic Cat in Appendix A. Does it use the direct write- off method or allowance method in accounting for its accounts receivable? What is the realizable value of its...
-
Review the balance sheet of Google in Appendix A. Identify the amount for property and equipment. What adjusting entry is necessary (no numbers required) for this account when preparing financial...
-
Explain the difference between product placement & branded entertainment . Do you personally notice product placements in television shows or movies? Why or why not? Identify at least two factors...
-
Every individual employee in an organization plays a role in controlling work activities. Do you agree with this statement, or do you think control is something that only managers are responsible...
-
Explain and apply the capital asset pricing model (CAPM).
-
George Clooney Company's income statement for the year ended December 31 2002, contained the following condensed information. Clooney s balance sheet contained the following comparative data at...
-
How should Monsanto manage the potential harm to plant and animal life when using products such as Roundup? The original Monsanto was very different from the current company. It was started by John...
-
ABC Company is considering a machine that will save $9,000 a year in cash operating costs each year for the next six years. At the end of six years it would have no salvage value. If this machine...
-
Just Say No to Rugs is a manufacturer of high-quality prefinished wood flooring. Their customer base consists of private consumers, building and supply retailers, and construction companies. The...
-
Refer to the financial statements and notes of Apple in Appendix A. In its presentation of accounts receivable on the balance sheet, how does it title accounts receivable? What does it report for its...
-
Refer to the financial statements of Samsung in Appendix A. What is the amount of Samsung's accounts receivable, titled as "Trade Receivables," on its December 31, 2015, balance sheet? Samsung's...
-
A municipal bond carries a coupon of 6 3/4 percent and is trading at par To a taxpayer in the 34 percent tax bracket, what would the taxable equivalent yield of this bond be? a. b. 4.5 percent 10.2...
-
A yen futures contract settles one year from today. If spot yen is 97, the one year yen interest rate is 1% and the one year US interest rate is 3%, estimate the futures price you should find on the...
-
Some enterprising physics students working on a catapult decide to have a water balloon fight in the school hallway. The ceiling is of height 3.5 m, and the balloons are launched at a velocity of 11...
-
What are the main tax laws applicable in Puerto Rico? What is the function of the Office for the Protection of Taxpayer Rights? Which individuals are required to file a return? When are estimated tax...
-
An apple falls from a tree and hits the ground 10.9 m below. With what speed will it hit the ground? The acceleration of gravity is 9.8 m/s .
-
We create a CDO with 100 loans of $1 mill each. These loans either pay off or default (Recovery Rate = 0), and the probability of a default of each mortgage is 15%. The defaults are independent...
-
On January 1, 2012, Sandburg Co. purchased 25,000 shares (a 10% interest) in Yevette Corp. for $1,400,000. At the time, the book value and the fair value of Yevettes net identifiable assets were...
-
Reichenbach Co., organized in 2018, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2018 and 2019. Instructions...
-
Barkley Company's adjusted trial balance on March 31, 2015, its fiscal year-end, follows. On March 31, 2014, merchandise inventory was $37,500. Supplementary records of merchandising activities for...
-
Refer to Apples financial statements in Appendix A to answer the following. Required 1. Assume that the amounts reported for inventories and cost of sales reflect items purchased in a form ready for...
-
Key comparative figures for both Apple and Google follow. Required 1. Compute the dollar amount of gross margin and the gross margin ratio for the two years shown for each of these companies. 2....
-
Mr. Amru Nazli started the business of a gold shop named Emas Ria. The store started operating on 1st Jan 2021. Here are the transactions for the month first store operations. 1-Jan-21 Starting a...
-
Please help me to solve these questions. Thank you so much! 1. Which of the following is not correct relating to financial statement audit? A) Financial statement audits of today place more emphasis...
-
Wham Products, a maker of specialty products, is currently manufacturing and selling a product called Gory Goo. A discount department store, J-Mart, has made a one-time offer to purchase 58,000 units...
Study smarter with the SolutionInn App