In: Accounting
What dollar amounts of Net Income reported in 2012,2011,2010 ?
4) Compute Google's liabilities as a percent of total asset in 2012 and 2011. Did the percentage increase or decrease ?
5) How much cash was provided by operating activities during 2012,2011,2010 ?
6) Comment on Financial Performance and Condition ??
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2010 |
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2011 |
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2012 |
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Revenues: |
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Google (advertising and other) |
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$ |
29,321 |
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$ |
37,905 |
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$ |
46,039 |
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Motorola Mobile (hardware and other) |
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0 |
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0 |
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4,136 |
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Total revenues |
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$ |
29,321 |
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$ |
37,905 |
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$ |
50,175 |
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Costs and expenses: |
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Cost of revenues—Google (advertising and other)(1) |
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10,417 |
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13,188 |
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17,176 |
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Cost of revenues—Motorola Mobile (hardware and other)(1) |
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0 |
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0 |
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3,458 |
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Research and development(1) |
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3,762 |
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5,162 |
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6,793 |
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Sales and marketing(1) |
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2,799 |
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4,589 |
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6,143 |
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General and administrative(1) |
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1,962 |
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2,724 |
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3,845 |
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Charge related to the resolution of Department of Justice investigation |
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0 |
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500 |
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0 |
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Total costs and expenses |
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18,940 |
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26,163 |
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37,415 |
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Income from operations |
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10,381 |
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11,742 |
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12,760 |
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Interest and other income, net |
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415 |
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584 |
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626 |
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Income from continuing operations before income taxes |
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10,796 |
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12,326 |
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13,386 |
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Provision for income taxes |
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2,291 |
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2,589 |
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2,598 |
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Net income from continuing operations |
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$ |
8,505 |
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$ |
9,737 |
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$ |
10,788 |
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Net loss from discontinued operations |
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0 |
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0 |
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(51 |
) |
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Net income |
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$ |
8,505 |
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$ |
9,737 |
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$ |
10,737 |
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Net income (loss) per share of Class A and Class B common stock—basic: |
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Continuing operations |
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$ |
26.69 |
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$ |
30.17 |
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$ |
32.97 |
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Discontinued operations |
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0.00 |
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0.00 |
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(0.16 |
) |
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Net income per share of Class A and Class B common stock—basic |
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$ |
26.69 |
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$ |
30.17 |
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$ |
32.81 |
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Net income (loss) per share of Class A and Class B common stock—diluted: |
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Continuing operations |
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$ |
26.31 |
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$ |
29.76 |
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$ |
32.46 |
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Discontinued operations |
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0.00 |
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0.00 |
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(0.15 |
) |
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Net income per share of Class A and Class B common stock—diluted |
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$ |
26.31 |
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$ |
29.76 |
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$ |
32.31 |
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(1) Includes stock-based compensation expense as follows: |
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Cost of revenues—Google (advertising and other) |
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$ |
67 |
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$ |
249 |
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$ |
359 |
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Cost of revenues—Motorola Mobile (hardware and other) |
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0 |
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0 |
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14 |
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Research and development |
|
861 |
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1,061 |
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1,325 |
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Sales and marketing |
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261 |
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361 |
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|
498 |
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General and administrative |
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187 |
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303 |
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|
453 |
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$ |
1,376 |
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$ |
1,974 |
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$ |
2,649 |
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| in million $ | |||||
| ans 3 | 2010 | 2011 | 2012 | ||
| Net Income | $8,505 | $9,737 | $10,737 | ||
| ans 4 | 19.88177584 | 23.54314591 | |||
| Liabilities as a % of total asset | (8913+2986+44+1693+287+506)/72574*100 | (14337+2988+100+2046+1872+740)/93798 | |||
| ans 5 | |||||
| Cash provided by operating activities | $11,081 | $14,565 | $16,619 | ||
| ans 6 | |||||
| We could calculate various ratios to know the performance | |||||
| Net Margin Ratio | 29.0 | 25.7 | 21.4 | % | |
| 8505/29321*100 | 9737/37905*100 | 10737/50175*100 | |||
| 13.4 | 11.4 | % | |||
| Return on assets | 9737/72574*100 | 10737/93798*100 | |||
| So the profitability is showing decreasing trend. In 2012 the net income ratio is 21.4% which | |||||
| is good but is less as comparison to 2011 and 2010. The Return on assets is also showing decraesing trend | |||||
| So the profitability is showing doen trend. Sales have increased but the expense also increased in a higher | |||||
| proporation. | |||||