ACCT 620 Financial Statement Analysis Yahoo! Inc. Case Study 7-2 Introduction You have been hired to perform on analysis of cash flows for Yahool Inc. Income statements The Statement of corn ows for Yahool is reproduced here: YAHOO! INC. Consolidated Statements of Cah Flows YEAR ENDED DECEMBER 31 Onthousands Year Year Cashflows repentingacties Netices $ 25,588 $125.5200 $16.427 Adjustments to reconcile et income statet cash provided by used in operating activities Depreciation and 10.215 2.737 639 Tai benefits front stock options 17.627 Moncash changed to options and wer 926 16 19 Minority interests in operations of colded sub... 158) 027) 15001 Purchased peach and debent 17300 Other social 21.245 Changes in assets and abilities Atouts recent S. $65.9630 114.2001 Prades 2,144 06.110 13861 Amounts payable 515 1.34 Accrued and other abiti 16.581 7.404 1.350 Deere 33.210 2.580 1.665 Due to related parties. (451) 330 Net cash vided by used in operating sites 110.221 480 12.31 Cash flows from investing activities Autoperty and get (1.1) 0.402 Cashouwd in to 199 Parthases of raceable securities 4121.135) 158.50 11152471 Proceeds from sales and stories of marketable Secues 25.678 Other in 15.4450 (1.6490 12 Net cash vided by the acties. (129,823) 19.554 (76.1781 continued YEAR ENDED DECEMBER 31, Year 8 Year Year 280.89 7510 800 in thousands Cash flows from financing activities Proceeds from ince of stock Proceeds front of the end Proceeds fon minority into Oh.. Net cash provided by finances Effect of exchange rate changes cash and cash equivalent Het change in the cheval Cash and cheest being of year Cash and cash equivalents at end of year 22.454 9.750 LOSO 0128 100.156 L105 9.521 281.27 080 286 $61.10 83571 $125.434 34.296 153.572 5.28.521 5.775 $34.296 Case Questions 1. Yahool's operations did not produce significant cash flows during Year ene Year 7. How coes Yohool Finance Its growth in the absence of sufficient operating cochowa 2. What appears to drive the operating corn flows of Yahoo 3. Yahool engages in purchases and sales of marketable securities. Why do you believe Yehool Pursues this ott 4. Yohool Report: $39.21 million of deferred revenue. Based on your understanding of Yohool's operations, what do you believe this amount representa ACCT 620 Financial Statement Analysis Yahoo! Inc. Case Study 7-2 Introduction You have been hired to perform on analysis of cash flows for Yahool Inc. Income statements The Statement of corn ows for Yahool is reproduced here: YAHOO! INC. Consolidated Statements of Cah Flows YEAR ENDED DECEMBER 31 Onthousands Year Year Cashflows repentingacties Netices $ 25,588 $125.5200 $16.427 Adjustments to reconcile et income statet cash provided by used in operating activities Depreciation and 10.215 2.737 639 Tai benefits front stock options 17.627 Moncash changed to options and wer 926 16 19 Minority interests in operations of colded sub... 158) 027) 15001 Purchased peach and debent 17300 Other social 21.245 Changes in assets and abilities Atouts recent S. $65.9630 114.2001 Prades 2,144 06.110 13861 Amounts payable 515 1.34 Accrued and other abiti 16.581 7.404 1.350 Deere 33.210 2.580 1.665 Due to related parties. (451) 330 Net cash vided by used in operating sites 110.221 480 12.31 Cash flows from investing activities Autoperty and get (1.1) 0.402 Cashouwd in to 199 Parthases of raceable securities 4121.135) 158.50 11152471 Proceeds from sales and stories of marketable Secues 25.678 Other in 15.4450 (1.6490 12 Net cash vided by the acties. (129,823) 19.554 (76.1781 continued YEAR ENDED DECEMBER 31, Year 8 Year Year 280.89 7510 800 in thousands Cash flows from financing activities Proceeds from ince of stock Proceeds front of the end Proceeds fon minority into Oh.. Net cash provided by finances Effect of exchange rate changes cash and cash equivalent Het change in the cheval Cash and cheest being of year Cash and cash equivalents at end of year 22.454 9.750 LOSO 0128 100.156 L105 9.521 281.27 080 286 $61.10 83571 $125.434 34.296 153.572 5.28.521 5.775 $34.296 Case Questions 1. Yahool's operations did not produce significant cash flows during Year ene Year 7. How coes Yohool Finance Its growth in the absence of sufficient operating cochowa 2. What appears to drive the operating corn flows of Yahoo 3. Yahool engages in purchases and sales of marketable securities. Why do you believe Yehool Pursues this ott 4. Yohool Report: $39.21 million of deferred revenue. Based on your understanding of Yohool's operations, what do you believe this amount representa