1. Briefly describe the operations of google and indicate whether it is a manufacturing, retail, or service company.
2. Which accounting firm audits Google? Briefly explain the contents of the audit report.
3. What dollar amounts for net income were reported in 2012, 2011, and 2010?
4. Compute Googles liabilities as a percent of total assets in 2012 and 2011. Did the percentage increase or decrease?
5. How much cash was provided by operating activities during 2012, 2011, and 2010?
6. Comment on Googles financial performance and condition.
7. Compute cost of sales, selling, general & administrative expenses, and taxes as a percent of revenues for 2012, 2011, and 2010, and explain how Googles net income has changed over the three-year period.
8. Compute current and noncurrent assets as a percent of total assets, and explain how Googles asset structure changed from 2011 to 2012.
9. Compute current and long-term liabilities as a percent of total assets, and explain how Googles reliance on liabilities as a source of financing changed from 2011 to 2012.
10. Review the statement of cash flows and comment on whether Google is growing and which financing sources have financed this growth.
11. Does the company pay dividends to its shareholders? Why or why not? Are there other methods that Google uses to return cash to shareholders?