Excerpts taken from the SEC Form 10-K of Google are reproduced online at www.wiley.com/college/pratt.

REQUIRED:

Review the Google Form 10-K and answer the following questions:

a. Compute cost of sales, selling, general & administrative expenses, and taxes as a percent of revenues for 2012, 2011, and 2010, and explain how Google's net income has changed over the three-year period.

b. Compute current and noncurrent assets as a percent of total assets, and explain how Google's asset structure changed from 2011 to 2012.

c. Compute current and long-term liabilities as a percent of total assets, and explain how Google's reliance on liabilities as a source of financing changed from 2011 to 2012.

d. Review the statement of cash flows and comment on whether Google is growing and which financing sources have financed this growth.

e. Does the company pay dividends to its shareholders? Why or why not? Are there other methods that Google uses to return cash to shareholders?