Question
Please answer this problem an please show your work! (Analyzing the cash flow statement) Goggle, Inc. is an Internet firm that has experienced a period
Please answer this problem an please show your work!
(Analyzing the cash flow statement) Goggle, Inc. is an Internet firm that has experienced a period of very rapid growth in revenues over the last four years. The cash flow statements for Goggle, Inc. spanning the period 2007-2010 are found below:
| 12 Months Ending | |||
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In Millions of U.S. Dollars | 12/31/2010 | 12/31/2009 | 12/31/2008 | 12/31/2007 |
Net income | $ 4,000 | $ 3,000 | $ 1,500 | $ 400 |
Depreciation expense | 1,000 | 600 | 300 | 150 |
Changes in working capital | 600 | 50 | 50 | (250) |
Cash from operating activities | $ 5,600 | $ 3,650 | $ 1,850 | $ 300 |
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Capital expenditures | $(3,600) | $(7,000) | $(3,300) | $(2,000) |
Cash from investing activities | $(3,600) | $(7,000) | $(3,300) | $(2,000) |
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Interest and financing cash flow items | $ 400 | $ 600 | $ 0 | $ 5 |
Total cash dividends paid | 0 | 0 | 0 | 0 |
Issuance (retirement) of stock | 24 | 2,400 | 4,400 | 1,200 |
Issuance (retirement) of debt | 0 | 0 | (2) | (5) |
Cash from financing activities | $ 424 | $ 3,000 | $ 4,398 | $ 1,200 |
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Net change in cash | $ 2,424 | $ (350) | $ 2,948 | $ (500) |
Answer the following questions using the information found in these statements:
Top of Form
a. Is Goggle generating positive cash flow from its operations?
b. How much did Goggle invest in new capital expenditures over the last four years?
c. Describe Goggle
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