• Google LLC experienced a cybersecurity breach resulting in $100 million in expenses for data recovery and customer compensation. The company reported the following financial information:
  • Total Expenses related to Cybersecurity Breach: $100 million
  • Net Income before Expenses: $15 billion
  • Total Equity: $200 billion
  • Earnings per Share (EPS) before Expenses: $20

• Requirements:
  1. Calculate Google's net income after accounting for expenses related to the cybersecurity breach.
  2. Prepare an income statement showing the impact of cybersecurity breach expenses on net income.
  3. Analyze the implications of the cybersecurity breach expenses on Google's return on equity (ROE).
  4. Discuss the disclosure requirements for cybersecurity breach expenses in Google's financial statements.
  5. Evaluate Google's risk management strategies to mitigate cybersecurity risks in the future.