Question
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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