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 ??
| 
 
  | 
 2010  | 
 
  | 
 2011  | 
 
  | 
 2012  | 
|||||||
| 
 Revenues:  | 
 
  | 
 
  | 
 
  | 
|||||||||
| 
 Google (advertising and other)  | 
 
  | 
 $  | 
 29,321  | 
 
  | 
 
  | 
 $  | 
 37,905  | 
 
  | 
 
  | 
 $  | 
 46,039  | 
 
  | 
| 
 Motorola Mobile (hardware and other)  | 
 
  | 
 0  | 
 
  | 
 
  | 
 0  | 
 
  | 
 
  | 
 4,136  | 
 
  | 
|||
| 
 
  | 
 
  | 
 
  | 
||||||||||
| 
 Total revenues  | 
 
  | 
 $  | 
 29,321  | 
 
  | 
 
  | 
 $  | 
 37,905  | 
 
  | 
 
  | 
 $  | 
 50,175  | 
 
  | 
| 
 
  | 
 
  | 
 
  | 
||||||||||
| 
 Costs and expenses:  | 
 
  | 
 
  | 
 
  | 
|||||||||
| 
 Cost of revenues—Google (advertising and other)(1)  | 
 
  | 
 10,417  | 
 
  | 
 
  | 
 13,188  | 
 
  | 
 
  | 
 17,176  | 
 
  | 
|||
| 
 Cost of revenues—Motorola Mobile (hardware and other)(1)  | 
 
  | 
 0  | 
 
  | 
 
  | 
 0  | 
 
  | 
 
  | 
 3,458  | 
 
  | 
|||
| 
 Research and development(1)  | 
 
  | 
 3,762  | 
 
  | 
 
  | 
 5,162  | 
 
  | 
 
  | 
 6,793  | 
 
  | 
|||
| 
 Sales and marketing(1)  | 
 
  | 
 2,799  | 
 
  | 
 
  | 
 4,589  | 
 
  | 
 
  | 
 6,143  | 
 
  | 
|||
| 
 General and administrative(1)  | 
 
  | 
 1,962  | 
 
  | 
 
  | 
 2,724  | 
 
  | 
 
  | 
 3,845  | 
 
  | 
|||
| 
 Charge related to the resolution of Department of Justice investigation  | 
 
  | 
 0  | 
 
  | 
 
  | 
 500  | 
 
  | 
 
  | 
 0  | 
 
  | 
|||
| 
 
  | 
 
  | 
 
  | 
||||||||||
| 
 Total costs and expenses  | 
 
  | 
 18,940  | 
 
  | 
 
  | 
 26,163  | 
 
  | 
 
  | 
 37,415  | 
 
  | 
|||
| 
 
  | 
 
  | 
 
  | 
||||||||||
| 
 Income from operations  | 
 
  | 
 10,381  | 
 
  | 
 
  | 
 11,742  | 
 
  | 
 
  | 
 12,760  | 
 
  | 
|||
| 
 Interest and other income, net  | 
 
  | 
 415  | 
 
  | 
 
  | 
 584  | 
 
  | 
 
  | 
 626  | 
 
  | 
|||
| 
 
  | 
 
  | 
 
  | 
||||||||||
| 
 Income from continuing operations before income taxes  | 
 
  | 
 10,796  | 
 
  | 
 
  | 
 12,326  | 
 
  | 
 
  | 
 13,386  | 
 
  | 
|||
| 
 Provision for income taxes  | 
 
  | 
 2,291  | 
 
  | 
 
  | 
 2,589  | 
 
  | 
 
  | 
 2,598  | 
 
  | 
|||
| 
 
  | 
 
  | 
 
  | 
||||||||||
| 
 Net income from continuing operations  | 
 
  | 
 $  | 
 8,505  | 
 
  | 
 
  | 
 $  | 
 9,737  | 
 
  | 
 
  | 
 $  | 
 10,788  | 
 
  | 
| 
 Net loss from discontinued operations  | 
 
  | 
 0  | 
 
  | 
 
  | 
 0  | 
 
  | 
 
  | 
 (51  | 
 )  | 
|||
| 
 
  | 
 
  | 
 
  | 
||||||||||
| 
 Net income  | 
 
  | 
 $  | 
 8,505  | 
 
  | 
 
  | 
 $  | 
 9,737  | 
 
  | 
 
  | 
 $  | 
 10,737  | 
 
  | 
| 
 
  | 
 
  | 
 
  | 
||||||||||
| 
 Net income (loss) per share of Class A and Class B common stock—basic:  | 
 
  | 
 
  | 
 
  | 
|||||||||
| 
 Continuing operations  | 
 
  | 
 $  | 
 26.69  | 
 
  | 
 
  | 
 $  | 
 30.17  | 
 
  | 
 
  | 
 $  | 
 32.97  | 
 
  | 
| 
 Discontinued operations  | 
 
  | 
 0.00  | 
 
  | 
 
  | 
 0.00  | 
 
  | 
 
  | 
 (0.16  | 
 )  | 
|||
| 
 
  | 
 
  | 
 
  | 
||||||||||
| 
 Net income per share of Class A and Class B common stock—basic  | 
 
  | 
 $  | 
 26.69  | 
 
  | 
 
  | 
 $  | 
 30.17  | 
 
  | 
 
  | 
 $  | 
 32.81  | 
 
  | 
| 
 
  | 
 
  | 
 
  | 
||||||||||
| 
 Net income (loss) per share of Class A and Class B common stock—diluted:  | 
 
  | 
 
  | 
 
  | 
|||||||||
| 
 Continuing operations  | 
 
  | 
 $  | 
 26.31  | 
 
  | 
 
  | 
 $  | 
 29.76  | 
 
  | 
 
  | 
 $  | 
 32.46  | 
 
  | 
| 
 Discontinued operations  | 
 
  | 
 0.00  | 
 
  | 
 
  | 
 0.00  | 
 
  | 
 
  | 
 (0.15  | 
 )  | 
|||
| 
 
  | 
 
  | 
 
  | 
||||||||||
| 
 Net income per share of Class A and Class B common stock—diluted  | 
 
  | 
 $  | 
 26.31  | 
 
  | 
 
  | 
 $  | 
 29.76  | 
 
  | 
 
  | 
 $  | 
 32.31  | 
 
  | 
| 
 
  | 
 
  | 
 
  | 
||||||||||
| 
 (1) Includes stock-based compensation expense as follows:  | 
 
  | 
 
  | 
 
  | 
|||||||||
| 
 Cost of revenues—Google (advertising and other)  | 
 
  | 
 $  | 
 67  | 
 
  | 
 
  | 
 $  | 
 249  | 
 
  | 
 
  | 
 $  | 
 359  | 
 
  | 
| 
 Cost of revenues—Motorola Mobile (hardware and other)  | 
 
  | 
 0  | 
 
  | 
 
  | 
 0  | 
 
  | 
 
  | 
 14  | 
 
  | 
|||
| 
 Research and development  | 
 
  | 
 861  | 
 
  | 
 
  | 
 1,061  | 
 
  | 
 
  | 
 1,325  | 
 
  | 
|||
| 
 Sales and marketing  | 
 
  | 
 261  | 
 
  | 
 
  | 
 361  | 
 
  | 
 
  | 
 498  | 
 
  | 
|||
| 
 General and administrative  | 
 
  | 
 187  | 
 
  | 
 
  | 
 303  | 
 
  | 
 
  | 
 453  | 
 
  | 
|||
| 
 
  | 
 
  | 
 
  | 
||||||||||
| 
 
  | 
 $  | 
 1,376  | 
 
  | 
 
  | 
 $  | 
 1,974  | 
 
  | 
 
  | 
 $  | 
 2,649  | 
 
  | 
|
| 
 
  | 
 
  | 
 
  | 
||||||||||
| 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. | |||||