Google Financial Statement Analysis

Google is a well known company and many people use to talk about it, a book « The Google story » has been written and many websites are talking about this company.

| In Year 1, depreciation is $5,000 plus 15% of the asset’s outlayFrom Year 2, depreciation is either * 30% of the asset’s book value; or * if the asset’s book value is less than $6,500, depreciation is the asset’s book value (i.e. asset is depreciated to zero once book value < $6,500)

(a) Compute depreciation expense for 2011 and 2012 using (1) the straight-line method, (2) the units-of-activity method, and (3) the double-declining balance method.

Google Inc. is an American multinational technology company specializing in internet related services and products. It was founded on September 1998 by Larry Page and Sergey Brin, whilst the current C.E.O is Sundar Pichai.

American Eagle Outfitters Inc. uses straight-line method to find depreciation of plant and property. The estimated useful lives of its buildings is at 25 years while its leasehold improvements and fixtures and equipment have estimated useful lives of lesser of 10 years or the term of the lease and 5 years, respectively. The cost of property and equipment for the fiscal year ending February 1, 2014 was $1,594,360,000 and its book value was $632,986,000. For the fiscal year ending January 31, 2015, the cost was $1,684,709,000 and the book value was $694,856,000. The depreciation expense trend for the past three years was generally upwards. While depreciation expense decreased by $5,995,000 from fiscal year 2013 to fiscal year 2014, it increased by $15,768,000 from fiscal year 2014 to fiscal year 2015.

Google Incorporated, founded in the late 1990s by two Stanford University Ph.D. students Larry Page and Sergey Brin, is a technology company. Google was officially incorporated as a privately owned company on September 4, 1998. It became a publicly traded company in August of 2004. At its founding Google was incorporated in California. Five years later, in 2003, the incorporation location changed to Delaware. The company’s headquarters is in Mountain View, California but it has many other office buildings around the world. For example, there is a large advertising sales team housed in New York City. As of 2014, the company ranked 46th on Fortunes top 500 U.S. Corporations. Ernest and Young LLP audited Google for the 2014 fiscal year. The

Google is a technology company operating on a global level. It employs 32,000 employees and generates annual revenues of about $38 billion .

Google’s total assets have steadily increased dating back from 2008 to 2012. Some key figures to point out in their assets are the slow growth between the second half of 2008

Google’s announcement released this month suggests a net profit of $13.17 billion, adjusted earning per share of $6.35 over the last quarter. However this still fall short of Wall Street’s forecast of $6.53 per share and net profit of $13.22 billion. After this announcement, Google’s shares dropped approximately 3% immediately (Financial Review, 2014). Although its long-term rising trend remains unchanged, it seems important for such giant cooperation to keep up with the expected growth rate always.

Google Inc. is a US based multinational company operating across glob using internet as its major medium of providing services and products solutions. These include but not limited to:

The purchase of long-lived assets are daily, quarterly and yearly occurrences for many corporations. The cost allocation of the asset is shown through the method of depreciation a company uses. The method a company chooses to incorporate should be one that most effectively matches expenses with the revenues produced. The method that most select is that of straight-line depreciation, which "spreads the depreciable value evenly over the useful life of an asset." (Horngren, Sundem, Elliott, & Philbrick 2006, p.342) Depreciation schedules reflect how

Google is the most successful information technology and web search company in the world. It was founded in 1998 by two Stanford Ph.D. students, Larry Page and Sergey Brin. The company name, Google, is a play on the word “googol” which is a mathematical term for the number 1 followed by 100 zeros. Larry Page and Sergey Brin chose this name to reflect the large amount of information on the web. The two created this search engine so that people can find anything on the web all in one place. The company’s mission is “to organize the world’s information and make it universally accessible and useful.” Now, the company is far more than a search engine website, it has grown to be a substantial collection of products and services that are

In The Google Story, authors David A. Vise and Mark Malseed narrate the success story of Google’s creators Larry Page and Sergey Brin. This text goes to great lengths to give the complete story on how Google on because the largest search engine the world has seen since its conception in 1998. Vise and Malseed argued that with sheer intelligence, innovation, and unique business tactics Google has created an empire. And after such a short time they dominated the search market. They also claim that Microsoft the main competitor of Google cannot rival, google because google creates landmark quality products and Microsoft only suppresses competition with their abundance of resources. The text also explores how the Founders were influenced greatly by their environment and heavily supported by their families.

In 1998, Stanford University graduates Larry Page and Sergey Brin combined their ingenuity and built a search engine called “BackRub” that evolved into what is now known as Google. Google, with over 150 domains, now functions as a search engine that offers many different products and services including web applications, advertising, sports scores, stock quotes, headlines, addresses, videos, etc. Google’s focus is “to provide useful and relevant information to the millions of people around the world as they rely on us (Google) to provide the answers they are seeking.”

Google, a company that started out as an internet search engine, has grown in to a global corporation whose name now often used as a verb, commands respect. Their number one philosophy was and still is to focus on the end user as they strive to complete their mission of organizing the world’s information and making it accessible (Google, n.d.a). Wanting to remain a private company, Google found themselves at a crossroad. Due to its size and the fact that it had 500 shareholders, Google faced having to become a publicly reporting company. Google had three choices; restructure to get below 500 shareholders by buying back shares from its employees, continue being a private company but report earnings as a public company, or go public (Schmidt, 2010). In April 2004 Google announced its intention of taking the company public (Choo, 2005; Schmidt, 2010). What followed can best be described as a “uniquely Googley” experience (Schmidt, 2010, p. 108) as the company prepared for an initial public offering (IPO) while facing uncertainty, skepticism, law suits, and complete disruption during the activities leading up to the IPO.