Essay about Cash And Cash Equivalents Of Google Inc
In terms of accounts receivable, it was stated in its 2014 Annual Report, “We record accounts receivable at the invoiced amount and we normally do not charge interest. We maintain an allowance for doubtful accounts to reserve for potentially uncollectible receivables” (citation). Net accounts receivable as a percentage of total assets went from 8% in both 2012 and 2013 to 7% in 2014.
In 2014, Google Inc. discontinued its Motorola Home and Motorola Mobile operations and sold them to Arris and Lenovo respectively. The sale included the assets and liabilities of both operations. The result was the 0% of inventory as a percentage of total assets in 2014 and 2013 as opposed to 1% in 2012. Arris and Lenovo received $228million and $217million worth of inventory respectively.
The prepaid assets account as a percentage of total asset went from 2% in 2012 to 3% in 2013 and stayed the same in 2014. The increase noticed is the inclusion of notes receivable in the calculation of prepaid assets. When Google Inc. sold its Motorola Mobile operations to Lenovo, it collected a note receivable a part of the payment. The note had a face value of $1,500 and…