answer the questions with the charts

I cant make it any clearer than that. idk how you cant read it

use thr charts to answer questions

56 CHAPTER GOOGLE INC For the years ended Dec. 31, 2008 De 31, 2007, and Dec. 31, 2006 Cest of goode sold 1,601.3 1,228.6 16.5%| $ 12%| $ 2.740.5 S 3,748.9 $ 2,793.2 172%| $ Other expense perating income Net interest expense (income) Other expense (inoome) come before income taxes Income taxes et income (loss) before unusual items ther losses (gains) net of tax ot income (loss) 4,011.0 37.8% 5,674.0 25 4,203.7 $ 4,2269 Dec.31, 2008, Dec. 31,2007, and Dec. 31,2006 ASSETS nsh & cash equivalents $ 8,656.7 $ 7,189.1 $ 2,928.3 273%| $ 22.6%| $ 9.2%| $ 0.0%| $ 4.4%| $ 6,001.6 8,137.0 2.376.3 24,0%| $ 32.1%|$ 9.4%| $ 0.0%1 $ 2.7%| $ 3544.7 7.699.2 1.352.1 ort-term investments counts receivable, net her current assets her current assets otal current assets $ 1,404.1 694.2 443.9 perty & equipment, net ng-term investments ngibles & goodwill er assets Total assets $ 5,233.8 16.5%| S 0.3%) $ 18.4%) $ 4.co9.3 1,059.7 2.7460 15.9%| S 42%| $ 10.8%| $ 2.395.2 1.co1.9 1,002.0 $ 5,8366 433.8 10 LIABILITIES ent: rt-term debt 00%| $ 73% $ $ 2,0840 6.6%| $ ounts payable 1.8575 1,199.5 rued salaries and benefits 0. arned revenue er current liabilities al current liabilities term debt 890.1 red income tax liabilities 0.3% long-term liabilities OWNERS EQUITY l owners' equity 3 otal liabilites and owners' equity3 GOOGLE INC RATIO ANALYSIS SUMMARY Net intereat expense (income Income betore ineome twxes 37 4,011.0 34.2%| $ 5.6740 26 g\| $ 25.3%| $ 00% 3,077.4 Net income (oss) before unusual items Other losses (gnins) net of tax Net income (loss) GOOGLE INC. COMPARATIVE COMMON-SIZE BALANCE SHEETS Dec. 31, 2008, Dec. 31,2007, and Dec. 31, 2006 20072006 2000 2006 ASSETS 24.0%| 19.2% .3% 24% 3.5447 7,699.2 1.3521 Cash & cash equivalents Short-term investments Accounts receivable, net 27,3%| $ 22.6%) $ 9.2%) $ 6,081.6 8,137.0 2.3763 $ 8,656.7 $ 7,189.1 $ 2,928.3 32.1%) S 9.4%) $ 0.0%) $ 2.7%) $ 7. 0. 443.9 Other current assets Other current assets Total current assets 694.2 4.4%) $ S 1,404.1 $ 20,178.2 Fixed: 15.9%| $ 4.2%| $ 10.8%) $ 2.3952 1,031.9 1,892.0 Property &equipment, net Long-term investments Intangibles&goodwill Other assets 16.5%) $ 0.3%) $ 4,039.3 1,059.7 $ 5,233.8 85.2 $ 5,836.6 433.8 31,767.6 18.4%|$ 10.2% 2,746.0 0.8%) $ 1000 Total assets 18.473 4 LIABILITIES Current: Short-term debt Accounts payable Accrued salaries and benefits Unearned revenue Other current liabilities Total current liabilities 0.0%) $ 6.6%| $ 0.0%| $ 0.0%| $ 0.0%1 $ 7.3%| $ 0.0%| $ 0.0%| $ 0.7961 $ 1,199.5 2,084.0 1,857.5 6.5% 0. 0. -105.1 Long-term debt Deferred income tax liabilities Other long-term liabilities 890.1 42.3 30.2 580 3 26461 60.4 0916| $ 11.1%13 889% Total liabilities OWNERS' EQUITY 28,238.9 Total owners' equity Total liabilities and owners' equity Note: percents may not add to 100 due to rounding GOOGLE INC. RATIO ANALYSIS SUMMARY to rounding) ARY years ended Dec. 31, 2008, Dec. 31, 2007, and Dec. 31, 2006 2007 Current Ratio ( Quick Ratio ( 8.90 6.98 7.44 7.84 na r-end Inventory) 60.1 (Net Income/Revenues) 0.76 0.76 1 of 21 Income statement questiorn 1, Are total revenues higher or lower over the three year period? 2. What is the percent change in total revenues from 2006 to 20087 3. Is the percent cost of goods sold to total revenues increasing or decreasing over the three year peniod? As a result, is the gross margin percent increasing or decreasing? 4, is the peroent of total operating expenses to total revenues increasing or decreasing over the three year period? As a result, is the operating income percent increasing or decreasing? 5. Is the percent of net income to total revenue increasing or decreasing over the three year period? Balance Sheet question 6. Are the assets higher or lower over the three year period? 7. What is the percent change in total assets from 2006 to 20087 8. What is the larger asset investment for the company over the three year period? 9. is the largest asset investment increasing faster or slower then the percent change in total 10. Is the percent of total liabilties to to total liabilities+owners equity increasing or decreasing? As a result, is there more or less risk that the company could not pay its debts? Integrative income statement and balance questions: 11. Is the company operating more or less efficiently by using the least amount of asset to generate a given level of total revenues? Ratio analysis questions: 12. Is the current ratio better or worse in the most current year compared to prior years? 13. Is the quick ratio better or worse in the most current year compared to prior years? 14. Is the accounts receivable turnover ratio 1 better or worse in the most current year compared to prior years? (based on average receivables) 15. Is the 2008 accounts receivable turnover ratio 2 ( based on year-end receivables) better or worse than the 2008 ratio based on an average 16. Is the inventory tumed over ratio 1 (based in average inventory) better or worse in the most current year compared to prior years? 17. Is the 2008 inventory tumover ratio 2 (based on year end inventory) better or worse than the 2008 ratio based on average? 18. In the return on total assets (ROA) ratio better or worse in the most current year compared to prior years? Stockholders equity questions 19. Assume google issues additional shares of common stock for $ 2,000,000 on Jan 1, 2009 What impact would this have on total debt ratio on that date (increase, decrease, no impact) ?Explain. 20. Assume google issues additional shares of common stock for $ 2,000,000 on Jan 1, 2009 What impact would this have on the retained eamings balance on that date (increase, decrease, no impact)? Explain. 21 Assume google issues additional shares of common stock for $ 2,000,000 on Jan 1, 2009. What impact would this have on the total amount of paid in capital on that date (increase, Verizon D, + 10:23 PM 7396 Untitled document Ratio analysis questions 12. Is the current ratio better or worse in the most current year compared to prior years? 13. Is the quick ratio better or worse in the most current year compared to prior years? 14. Is the accounts receivable turnover ratio 1 better or worse in the most current year compared to prior years? (based on average receivables) 15. Is the 2008 accounts receivable turnover ratio 2 (based on year-end receivables) better or worse than the 2008 ratio based on an average 16. Is the inventory tumed over ratio 1 (based in average inventory) better or worse in the most current year compared to prior years? 17. Is the 2008 inventory turnover ratio 2 (based on year end inventory) better or worse than the 2008 ratio based on average? 18. In the return on total assets (ROA) ratio better or worse in the most current year compared to prior years? Stockholders equity questions 19. Assume google issues additional shares of common stock for $ 2,000,000 on Jan 1, 2009 What impact would this have on total debt ratio on that date (increase, decrease, no impact) PExplain. 20. Assume google issues additional shares of common stock for $ 2,000,000 on Jan 1, 2009 What impact would this have on the retained eamings balance on that date (increase, decrease, no impact)? Explain. 21 Assume google issues additional shares of common stock for $ 2,000,000 on Jan 1, 2009. What impact would this have on the total amount of paid in capital on that date (increase, decrease, no impact?) Explain 22. Assume google issues additional shares of common stock for $ 2,000,000 on Jan 1, 2009 What impact would this have on the amount of total assets on that date (increase, decrease, no impact?) Explain Edit in Google Docs 56 CHAPTER GOOGLE INC For the years ended Dec. 31, 2008 De 31, 2007, and Dec. 31, 2006 Cest of goode sold 1,601.3 1,228.6 16.5%| $ 12%| $ 2.740.5 S 3,748.9 $ 2,793.2 172%| $ Other expense perating income Net interest expense (income) Other expense (inoome) come before income taxes Income taxes et income (loss) before unusual items ther losses (gains) net of tax ot income (loss) 4,011.0 37.8% 5,674.0 25 4,203.7 $ 4,2269 Dec.31, 2008, Dec. 31,2007, and Dec. 31,2006 ASSETS nsh & cash equivalents $ 8,656.7 $ 7,189.1 $ 2,928.3 273%| $ 22.6%| $ 9.2%| $ 0.0%| $ 4.4%| $ 6,001.6 8,137.0 2.376.3 24,0%| $ 32.1%|$ 9.4%| $ 0.0%1 $ 2.7%| $ 3544.7 7.699.2 1.352.1 ort-term investments counts receivable, net her current assets her current assets otal current assets $ 1,404.1 694.2 443.9 perty & equipment, net ng-term investments ngibles & goodwill er assets Total assets $ 5,233.8 16.5%| S 0.3%) $ 18.4%) $ 4.co9.3 1,059.7 2.7460 15.9%| S 42%| $ 10.8%| $ 2.395.2 1.co1.9 1,002.0 $ 5,8366 433.8 10 LIABILITIES ent: rt-term debt 00%| $ 73% $ $ 2,0840 6.6%| $ ounts payable 1.8575 1,199.5 rued salaries and benefits 0. arned revenue er current liabilities al current liabilities term debt 890.1 red income tax liabilities 0.3% long-term liabilities OWNERS EQUITY l owners' equity 3 otal liabilites and owners' equity3 GOOGLE INC RATIO ANALYSIS SUMMARY Net intereat expense (income Income betore ineome twxes 37 4,011.0 34.2%| $ 5.6740 26 g\| $ 25.3%| $ 00% 3,077.4 Net income (oss) before unusual items Other losses (gnins) net of tax Net income (loss) GOOGLE INC. COMPARATIVE COMMON-SIZE BALANCE SHEETS Dec. 31, 2008, Dec. 31,2007, and Dec. 31, 2006 20072006 2000 2006 ASSETS 24.0%| 19.2% .3% 24% 3.5447 7,699.2 1.3521 Cash & cash equivalents Short-term investments Accounts receivable, net 27,3%| $ 22.6%) $ 9.2%) $ 6,081.6 8,137.0 2.3763 $ 8,656.7 $ 7,189.1 $ 2,928.3 32.1%) S 9.4%) $ 0.0%) $ 2.7%) $ 7. 0. 443.9 Other current assets Other current assets Total current assets 694.2 4.4%) $ S 1,404.1 $ 20,178.2 Fixed: 15.9%| $ 4.2%| $ 10.8%) $ 2.3952 1,031.9 1,892.0 Property &equipment, net Long-term investments Intangibles&goodwill Other assets 16.5%) $ 0.3%) $ 4,039.3 1,059.7 $ 5,233.8 85.2 $ 5,836.6 433.8 31,767.6 18.4%|$ 10.2% 2,746.0 0.8%) $ 1000 Total assets 18.473 4 LIABILITIES Current: Short-term debt Accounts payable Accrued salaries and benefits Unearned revenue Other current liabilities Total current liabilities 0.0%) $ 6.6%| $ 0.0%| $ 0.0%| $ 0.0%1 $ 7.3%| $ 0.0%| $ 0.0%| $ 0.7961 $ 1,199.5 2,084.0 1,857.5 6.5% 0. 0. -105.1 Long-term debt Deferred income tax liabilities Other long-term liabilities 890.1 42.3 30.2 580 3 26461 60.4 0916| $ 11.1%13 889% Total liabilities OWNERS' EQUITY 28,238.9 Total owners' equity Total liabilities and owners' equity Note: percents may not add to 100 due to rounding GOOGLE INC. RATIO ANALYSIS SUMMARY to rounding) ARY years ended Dec. 31, 2008, Dec. 31, 2007, and Dec. 31, 2006 2007 Current Ratio ( Quick Ratio ( 8.90 6.98 7.44 7.84 na r-end Inventory) 60.1 (Net Income/Revenues) 0.76 0.76 1 of 21 Income statement questiorn 1, Are total revenues higher or lower over the three year period? 2. What is the percent change in total revenues from 2006 to 20087 3. Is the percent cost of goods sold to total revenues increasing or decreasing over the three year peniod? As a result, is the gross margin percent increasing or decreasing? 4, is the peroent of total operating expenses to total revenues increasing or decreasing over the three year period? As a result, is the operating income percent increasing or decreasing? 5. Is the percent of net income to total revenue increasing or decreasing over the three year period? Balance Sheet question 6. Are the assets higher or lower over the three year period? 7. What is the percent change in total assets from 2006 to 20087 8. What is the larger asset investment for the company over the three year period? 9. is the largest asset investment increasing faster or slower then the percent change in total 10. Is the percent of total liabilties to to total liabilities+owners equity increasing or decreasing? As a result, is there more or less risk that the company could not pay its debts? Integrative income statement and balance questions: 11. Is the company operating more or less efficiently by using the least amount of asset to generate a given level of total revenues? Ratio analysis questions: 12. Is the current ratio better or worse in the most current year compared to prior years? 13. Is the quick ratio better or worse in the most current year compared to prior years? 14. Is the accounts receivable turnover ratio 1 better or worse in the most current year compared to prior years? (based on average receivables) 15. Is the 2008 accounts receivable turnover ratio 2 ( based on year-end receivables) better or worse than the 2008 ratio based on an average 16. Is the inventory tumed over ratio 1 (based in average inventory) better or worse in the most current year compared to prior years? 17. Is the 2008 inventory tumover ratio 2 (based on year end inventory) better or worse than the 2008 ratio based on average? 18. In the return on total assets (ROA) ratio better or worse in the most current year compared to prior years? Stockholders equity questions 19. Assume google issues additional shares of common stock for $ 2,000,000 on Jan 1, 2009 What impact would this have on total debt ratio on that date (increase, decrease, no impact) ?Explain. 20. Assume google issues additional shares of common stock for $ 2,000,000 on Jan 1, 2009 What impact would this have on the retained eamings balance on that date (increase, decrease, no impact)? Explain. 21 Assume google issues additional shares of common stock for $ 2,000,000 on Jan 1, 2009. What impact would this have on the total amount of paid in capital on that date (increase, Verizon D, + 10:23 PM 7396 Untitled document Ratio analysis questions 12. Is the current ratio better or worse in the most current year compared to prior years? 13. Is the quick ratio better or worse in the most current year compared to prior years? 14. Is the accounts receivable turnover ratio 1 better or worse in the most current year compared to prior years? (based on average receivables) 15. Is the 2008 accounts receivable turnover ratio 2 (based on year-end receivables) better or worse than the 2008 ratio based on an average 16. Is the inventory tumed over ratio 1 (based in average inventory) better or worse in the most current year compared to prior years? 17. Is the 2008 inventory turnover ratio 2 (based on year end inventory) better or worse than the 2008 ratio based on average? 18. In the return on total assets (ROA) ratio better or worse in the most current year compared to prior years? Stockholders equity questions 19. Assume google issues additional shares of common stock for $ 2,000,000 on Jan 1, 2009 What impact would this have on total debt ratio on that date (increase, decrease, no impact) PExplain. 20. Assume google issues additional shares of common stock for $ 2,000,000 on Jan 1, 2009 What impact would this have on the retained eamings balance on that date (increase, decrease, no impact)? Explain. 21 Assume google issues additional shares of common stock for $ 2,000,000 on Jan 1, 2009. What impact would this have on the total amount of paid in capital on that date (increase, decrease, no impact?) Explain 22. Assume google issues additional shares of common stock for $ 2,000,000 on Jan 1, 2009 What impact would this have on the amount of total assets on that date (increase, decrease, no impact?) Explain Edit in Google Docs