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Using the balance sheet of Google provided in the next page, answer the following questions As of December 31 st , 2005, how much does

Using the balance sheet of Google provided in the next page, answer the following questions

As of December 31st, 2005, how much does Google expect to collect from its customers in the future because of sales that were made prior to January 1st, 2006?

Assume that Google had written off $2,500 (thousand) of its accounts receivable as permanently uncollectible during the year ended December 31st, 2005. How much bad debt expense did Google record during 2005?

Google Inc.

CONSOLIDATED BALANCE SHEETS

(In thousands, except par value)

December 31,

2004

2005

Assets

Current assets:

Cash and cash equivalents

$

426,873

$

3,877,174

Marketable securities

1,705,424

4,157,073

Accounts receivable, net of allowances of $3,962 and $14,852

311,836

687,976

Income taxes receivable

70,509

Deferred income taxes, net

19,463

49,341

Prepaid revenue share, expenses and other assets

159,360

229,507

Total current assets

2,693,465

9,001,071

Property and equipment, net

378,916

961,749

Goodwill

122,818

194,900

Intangible assets, net

71,069

82,783

Deferred income taxes, net, non-current

11,590

Prepaid revenue share, expenses and other assets, non-current

35,493

31,310

Total assets

$

3,313,351

$

10,271,813

Liabilities and Stockholders Equity

Current liabilities:

Accounts payable

$

32,672

$

115,575

Accrued compensation and benefits

82,631

198,788

Accrued expenses and other current liabilities

64,111

114,377

Accrued revenue share

122,544

215,771

Deferred revenue

36,508

73,099

Income taxes payable

27,774

Current portion of equipment leases

1,902

Total current liabilities

340,368

745,384

Deferred revenue, long-term

7,443

10,468

Liability for stock options exercised early, long-term

5,982

2,083

Deferred income taxes, net

35,419

Other long-term liabilities

30,502

59,502

Commitments and contingencies

Stockholders equity:

Class A and Class B common stock, $0.001 par value: 9,000,000 shares authorized at December 31, 2004 and December 31, 2005, 266,917, and 293,027 shares issued and outstanding, excluding 7,605, and 3,303 shares subject to repurchase (see Note 10) at December 31, 2004 and December 31, 2005

267

293

Additional paid-in capital

2,582,352

7,477,792

Deferred stock-based compensation

(249,470

)

(119,015

)

Accumulated other comprehensive income

5,436

4,019

Retained earnings

590,471

2,055,868

Total stockholders equity

2,929,056

9,418,957

Total liabilities and stockholders equity

$

3,313,351

$

10,271,813

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