4 Problem related to each other. Show all Process in Excel.

IA. Refer to Google- 2019 and 2018 balance sheets and income statements. Use financial statement information provided to calculate the companys Operating Cycle and Cash (Conversion) Cycle. Show all your work for each equation.

IB. If Google wished to improve its Cash (Conversion) Cycle, should its managers decrease or increase its cash conversion cycle? _______________Explain your answer in 3-4 sentences.

IC. List at least two ways that Google could achieve this improvement.

ID. Explain the possible risks Google may face if it follows your suggestions.

Equations-

A. Average Inventory = (Beginning Inventory +Ending Inventory)/2

B. Inventory Turnover Ratio = Cost of Goods Sold/Average Inventory

C. Inventory Period = 365 days/Inventory Turnover Ratio

D. Average Accounts Receivables = (Beginning Accounts Receivables + Ending Accounts Receivables)/2

E. Accounts Receivable Turnover = Net (credit) sales/Average Accounts Receivables

F. Accounts Receivable Period = 365 days/Accounts Receivable Turnover

G. Average Accounts Payables= (Beginning Accounts Payables + Ending Accounts Payables)/2

H. Accounts Payables Ratio = Cost of Goods Sold/Average Accounts Payables

I. Accounts Payable Period = 365 days/Accounts Payables Ratio

J. Operating Cycle = Inventory Period +Accounts Receivable Period

K. Cash Cycle = Operating Cycle Accounts Payable Period

2019 50,707,000,000 18 440,000,000 8,911,000,000 6,037,000,000 2.874,000,000 2.874,000,000 3,584,000,000 358,000,000 2.227.000.000 999,000,000 4,057,000,000 4057,000,000 1.888,000,000 41.267.000.000 4.928,000,000 13285,000,000 4.020,000,000 263.000.000 3.757,000,000 8 358,000,000 3891,000,000 1.154,000,000 3,313,000,000 907,000,000 2018 68,416,000,000 37618,000,000 29,304,000,000 5.945,000,000 22,359,000,000 22,359,000,000 2 940,000,000 257,000,000 1,650,000,000 1.023,000,000 3,580,000,000 3.580,000 CCID 1.794,000,000 28.798,000,000 4,958,000,000 12,754,00X3,00D 3,891,000,000 265,000,000 3.616,000,000 7.920,000,000 3.592000.ca 1,124,000,000 3,204,000,000 953,000,000 -8 357,000,000 -8357,000,000 34,116.000.000 48.748,000,000 14,703,000,000 32 045,000,000 25.575.000.000 6.416,000,000 54,000,000 -7796,000,000 -7.796,000,000 22 142,000,000 33,544,000,000 14, 699,000,000 19.845,000,000 12,573,000,000 5.217.000.000 55,000,000 -12,632,000,000 -12 632,000,000 12.632,000,000 -8 322,000,000 4.310,000,000 0 - 11,402.000.000 - 11 402,000,000 11,432,000,000 -7,479,000,000 -3.923,000,000 BALANCE SHEETS Total Assets Total Current Assets Cash, Cash Equivalents and Short Term Investments Cash and Cash Equivalents Short Term Investments Trading Listed Investments, Current Inventories Raw Materials. Consumables and Supplies Work-in-process Finished Goods and Marchandise Trade and Other Receivables, Current Trade/Accounts Receivable, Current Other Current Assets Total Non-Current Assets Net Property, plant and Equipment Gross Property, Plant and Equioment Properties Land and Improvements Buildings and improvements Machinery, Furniture and Equipment Plant and Machinery Furniture, Fatures and Office Equipment Other Equipment Construction in Progress and Advance Payments Other Property. Plans and Equipment Accumulated Depreciation and Impairment Accumulated Depreciation Net Intangible Assets Gross Goodwill and Other intangible Assets Goodwil Intangibles other than Goodwill Software und Technology Licenses and Rights Research and Development Trademarks and Palento Other Intangible Assets Accumulated Ammortization and Impairment Accumulated Amortization of Intangible Assets Accumulated Amortization of Intangibles other than Goodwill Accumulated Amortization of Software and Technology Accumulated Amortization of Licences and Rights Accumulated Amortization of Research and Development Accumulated Amortization of Trademarks and Patents Accumulated Amortization of Other Intangible Assets Other Non-Current Assets Total Long Term Investments Investment in Financial Assets, Non-Current Trading Securities/Assets. Non-Current Total Liablilies Total Current Liabilities Payables and Aboud Expenses, Current Trade and Other Payables, Current Trade/Accounts Payable, Current Dividends Payable. Current Accrued Exnenses, Current Financial Liabilities, Current Current Debt and Capital Lease Obligation Current Portion of Long Term Debt and Capital Lease Current Portion of Long Term Debt Current Dent Notes Payable, Current Deb! Provisions, Current Provision for Employee Entitlements. Current Total Non-Current Labilities Financial Liabilities, Non-Current Long Term Debt and Capital Lease Obligation Long Term Debt Notes Payables, Non-Current Convertible Debentures/Loans, Non-Current Tax Liabilities, Nan Current Deferred Tax Liabilities, Non-Current Payables and Accrued Expenses Non-Current Trade and Other Payables, Non-Current Taxes Payable. Non-Current Other Non-Current Liabilities Total Equity Enuity Attributable to Parent Stockholders Paid in Capital Capital Stock Common Stock Common Stock, with Par Value Retained Earnings/Accumulated Deficit Reserves Accumulated Comprehensive income LOSSES Common Shares issued Common Shares Outstanding Common Shares Treasury Fiscal year ends in Dec 31 USD 2, 223,000,000 1.698.000.000 50.034,000,000 12.835,000,000 8.901,000,000 2.317,000,000 1.371,000,000 946,000,000 6.584,000,000 2,953,000,000 2.953,000 OCHO 2.953,000,000 2.953,000,000 53,916,000,000 13 498,000,000 8,088,000,000 2,121,000,000 1.297,000,000 914,000,000 5.94700,000 4,419,000,000 4 4.419,00 CD 4,419,000,000 4,419,000,000 981,000,000 981,000,000 37.199,000,000 26 950,000,000 26.950,000,000 26 950,000,000 1.001.000,00 1,001,000,000 40,428,000,000 29,510,000,000 29,510,000,000 29,510,000,000 606,000,000 606,000,000 4,037,000,000 8,037,000,000 8,037.000.000 1.606,000,000 9.673,000,000 9.673,000,000 31,531,000,000 31,531,000,000 31,531,000,000 884,000,000 864,000,000 8.770,000,000 8,770,000,000 8.770.000.000 1.294,000,000 12,500,000,000 12.500,000,000 31,246,000,000 31.246,000,000 31,246,000,000 21.330,000,000 -528,000,000 591,400,000 591.400,000 D -17.977,000,000 -769,000,000 629,800,000 629,500,000 D 2019 19,006,000,000 23,362,000,000 22,204,000,000 1,158,000,000 -4,356,000,000 -4,356,000,000 -9,332,000,000 -5,150,000,000 -4,116,000,000 -66,000,000 2018 19,646,000,000 23,747,000,000 22,533,000,000 1,214,000,000 -4,101,000,000 -4,101,000,000 -9,383,000,000 -5,332,000,000 -3,737,000,000 -314,000,000 INCOME STATEMENTS Gross Profit Total Revenue Business Revenue Other Revenue Cost of Revenue Cost of Goods and Services Operating Income/Expenses Selling, General and Administrative Expenses Research and Development Expenses Other Income/Expense, Operating Depreciation, Amortization and Depletion Depreciation and Amortization Amortization Total Operating Profit/Loss Non-Operating Income/Expenses, Total Total Net Finance Income/Expense Net Interest Income/Expense Interest Expense Net of Capitalized Interest Interest Income Irregular Income/Expenses Pretax Income Provision for Income Net Income from Continuing Operations Net Income after Extraordinary Items and Discontinued Operations Net Income after Non-Controlling/Minority Interests Net Income Available to Common Stockholders Diluted Net Income Available to Common Stockholders Reported Total Revenue Reported Operating Expense Reported Total Operating Profit/Loss Reported Normalized Income Reported Effective Tax Rate Reported Normalized Operating Profit Fiscal year ends in Dec 31 USD 9,674,000,000 -536,000,000 -536,000,000 -536,000,000 -1,289,000,000 753,000,000 10,263,000,000 -718,000,000 -718,000,000 -718,000,000 -1,392,000,000 674,000,000 9,138,000,000 -1,296,000,000 7,842,000,000 7,842,000,000 7,842,000,000 7.842,000,000 7,842,000,000 23,362,000,000 -13,688,000,000 9,674,000,000 9,028,000,000 0 11,157,000,000 9,545,000,000 -1,151,000,000 8,394,000,000 8,394,000,000 8,394,000,000 8,394,000,000 8,394,000,000 23,747,000,000 -13,484,000,000 10,263,000,000 9,573,000,000 0 11,857,000,000 2019 50,707,000,000 18 440,000,000 8,911,000,000 6,037,000,000 2.874,000,000 2.874,000,000 3,584,000,000 358,000,000 2.227.000.000 999,000,000 4,057,000,000 4057,000,000 1.888,000,000 41.267.000.000 4.928,000,000 13285,000,000 4.020,000,000 263.000.000 3.757,000,000 8 358,000,000 3891,000,000 1.154,000,000 3,313,000,000 907,000,000 2018 68,416,000,000 37618,000,000 29,304,000,000 5.945,000,000 22,359,000,000 22,359,000,000 2 940,000,000 257,000,000 1,650,000,000 1.023,000,000 3,580,000,000 3.580,000 CCID 1.794,000,000 28.798,000,000 4,958,000,000 12,754,00X3,00D 3,891,000,000 265,000,000 3.616,000,000 7.920,000,000 3.592000.ca 1,124,000,000 3,204,000,000 953,000,000 -8 357,000,000 -8357,000,000 34,116.000.000 48.748,000,000 14,703,000,000 32 045,000,000 25.575.000.000 6.416,000,000 54,000,000 -7796,000,000 -7.796,000,000 22 142,000,000 33,544,000,000 14, 699,000,000 19.845,000,000 12,573,000,000 5.217.000.000 55,000,000 -12,632,000,000 -12 632,000,000 12.632,000,000 -8 322,000,000 4.310,000,000 0 - 11,402.000.000 - 11 402,000,000 11,432,000,000 -7,479,000,000 -3.923,000,000 BALANCE SHEETS Total Assets Total Current Assets Cash, Cash Equivalents and Short Term Investments Cash and Cash Equivalents Short Term Investments Trading Listed Investments, Current Inventories Raw Materials. Consumables and Supplies Work-in-process Finished Goods and Marchandise Trade and Other Receivables, Current Trade/Accounts Receivable, Current Other Current Assets Total Non-Current Assets Net Property, plant and Equipment Gross Property, Plant and Equioment Properties Land and Improvements Buildings and improvements Machinery, Furniture and Equipment Plant and Machinery Furniture, Fatures and Office Equipment Other Equipment Construction in Progress and Advance Payments Other Property. Plans and Equipment Accumulated Depreciation and Impairment Accumulated Depreciation Net Intangible Assets Gross Goodwill and Other intangible Assets Goodwil Intangibles other than Goodwill Software und Technology Licenses and Rights Research and Development Trademarks and Palento Other Intangible Assets Accumulated Ammortization and Impairment Accumulated Amortization of Intangible Assets Accumulated Amortization of Intangibles other than Goodwill Accumulated Amortization of Software and Technology Accumulated Amortization of Licences and Rights Accumulated Amortization of Research and Development Accumulated Amortization of Trademarks and Patents Accumulated Amortization of Other Intangible Assets Other Non-Current Assets Total Long Term Investments Investment in Financial Assets, Non-Current Trading Securities/Assets. Non-Current Total Liablilies Total Current Liabilities Payables and Aboud Expenses, Current Trade and Other Payables, Current Trade/Accounts Payable, Current Dividends Payable. Current Accrued Exnenses, Current Financial Liabilities, Current Current Debt and Capital Lease Obligation Current Portion of Long Term Debt and Capital Lease Current Portion of Long Term Debt Current Dent Notes Payable, Current Deb! Provisions, Current Provision for Employee Entitlements. Current Total Non-Current Labilities Financial Liabilities, Non-Current Long Term Debt and Capital Lease Obligation Long Term Debt Notes Payables, Non-Current Convertible Debentures/Loans, Non-Current Tax Liabilities, Nan Current Deferred Tax Liabilities, Non-Current Payables and Accrued Expenses Non-Current Trade and Other Payables, Non-Current Taxes Payable. Non-Current Other Non-Current Liabilities Total Equity Enuity Attributable to Parent Stockholders Paid in Capital Capital Stock Common Stock Common Stock, with Par Value Retained Earnings/Accumulated Deficit Reserves Accumulated Comprehensive income LOSSES Common Shares issued Common Shares Outstanding Common Shares Treasury Fiscal year ends in Dec 31 USD 2, 223,000,000 1.698.000.000 50.034,000,000 12.835,000,000 8.901,000,000 2.317,000,000 1.371,000,000 946,000,000 6.584,000,000 2,953,000,000 2.953,000 OCHO 2.953,000,000 2.953,000,000 53,916,000,000 13 498,000,000 8,088,000,000 2,121,000,000 1.297,000,000 914,000,000 5.94700,000 4,419,000,000 4 4.419,00 CD 4,419,000,000 4,419,000,000 981,000,000 981,000,000 37.199,000,000 26 950,000,000 26.950,000,000 26 950,000,000 1.001.000,00 1,001,000,000 40,428,000,000 29,510,000,000 29,510,000,000 29,510,000,000 606,000,000 606,000,000 4,037,000,000 8,037,000,000 8,037.000.000 1.606,000,000 9.673,000,000 9.673,000,000 31,531,000,000 31,531,000,000 31,531,000,000 884,000,000 864,000,000 8.770,000,000 8,770,000,000 8.770.000.000 1.294,000,000 12,500,000,000 12.500,000,000 31,246,000,000 31.246,000,000 31,246,000,000 21.330,000,000 -528,000,000 591,400,000 591.400,000 D -17.977,000,000 -769,000,000 629,800,000 629,500,000 D 2019 19,006,000,000 23,362,000,000 22,204,000,000 1,158,000,000 -4,356,000,000 -4,356,000,000 -9,332,000,000 -5,150,000,000 -4,116,000,000 -66,000,000 2018 19,646,000,000 23,747,000,000 22,533,000,000 1,214,000,000 -4,101,000,000 -4,101,000,000 -9,383,000,000 -5,332,000,000 -3,737,000,000 -314,000,000 INCOME STATEMENTS Gross Profit Total Revenue Business Revenue Other Revenue Cost of Revenue Cost of Goods and Services Operating Income/Expenses Selling, General and Administrative Expenses Research and Development Expenses Other Income/Expense, Operating Depreciation, Amortization and Depletion Depreciation and Amortization Amortization Total Operating Profit/Loss Non-Operating Income/Expenses, Total Total Net Finance Income/Expense Net Interest Income/Expense Interest Expense Net of Capitalized Interest Interest Income Irregular Income/Expenses Pretax Income Provision for Income Net Income from Continuing Operations Net Income after Extraordinary Items and Discontinued Operations Net Income after Non-Controlling/Minority Interests Net Income Available to Common Stockholders Diluted Net Income Available to Common Stockholders Reported Total Revenue Reported Operating Expense Reported Total Operating Profit/Loss Reported Normalized Income Reported Effective Tax Rate Reported Normalized Operating Profit Fiscal year ends in Dec 31 USD 9,674,000,000 -536,000,000 -536,000,000 -536,000,000 -1,289,000,000 753,000,000 10,263,000,000 -718,000,000 -718,000,000 -718,000,000 -1,392,000,000 674,000,000 9,138,000,000 -1,296,000,000 7,842,000,000 7,842,000,000 7,842,000,000 7.842,000,000 7,842,000,000 23,362,000,000 -13,688,000,000 9,674,000,000 9,028,000,000 0 11,157,000,000 9,545,000,000 -1,151,000,000 8,394,000,000 8,394,000,000 8,394,000,000 8,394,000,000 8,394,000,000 23,747,000,000 -13,484,000,000 10,263,000,000 9,573,000,000 0 11,857,000,000