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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

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

Capital expenditures

$(3,600)

$(7,000)

$(3,300)

$(2,000)

Cash from investing activities

$(3,600)

$(7,000)

$(3,300)

$(2,000)

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

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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