Google Financial Statement Analysis Essay

2019 Words Jul 10th, 2013 9 Pages
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Google Financial Statement Analysis

Table of Contents Introduction 3 Property and Equipment 4 Intangible Assets 5 Goodwill 6 Depreciation Methods 6 Impairment 7 Current Liabilities 7 Contingent Liabilities 7 Long-term Liabilities 8 Bonds Payable 8 Capital Leases 8 Works Cited 10

Introduction

Google Inc. is an American multinational corporation that specializes in Internet-related services and products. It was founded on September 4, 1998 by Larry Page and Sergey Brin while they both were attending Stanford University. Google’s mission statement is “to organize the world’s information and make it universally accessible and useful” (Google). I chose to do my financial report analysis on Google because
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Google’s recent depreciation expense can be viewed in the chart below: (Wikinvest)

In Google’s most recent year, they had a total of $1.988 billion dollars in depreciation and depletion. In 2012, Google invested $3.27 billion dollars in the purchasing of property and equipment. Google also made $45 million in reverse repurchase agreements. Google does not state how much they specifically have in land, property or equipment. In the chart below, you can see the cash flow of Google over the years:

Intangible Assets

Google reviews property and equipment, long-term prepayments and intangible assets, excluding goodwill, for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. They measure recoverability of these assets by comparing the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If property and equipment and intangible assets are considered to be impaired, the impairment to be recognized equals the amount by which the carrying value of the asset exceeds its fair market value. They have made no material adjustments to their long-lived assets in any of the years presented.
The biggest intangible asset that makes Google the most money is probably their Android software or YouTube. Google’s Android software is

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