The Technology of Cash Flows Essay

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In today’s economy, cash is often considered to be king. This rings true for consumers and companies alike. The flows of a company’s cash are summarized on a company’s statement of cash flows (Gibson, 2011). The cash flow statement provides information regarding the effectiveness of company management in operating the business, how the company’s money is derived, and the way funds are being spent (Megan, Hategan, Caciuc, & Cotlet, 2009). A company’s management uses the statement of cash flows to assist with budgeting as it can predict cash flows in the future (Megan et al., 2009). Additionally, investors use it to assess the financial health of a company (Gibson, 2011; Megan et al., 2009). Technology companies have experienced…show more content…
In today’s economy, cash is often considered to be king. This rings true for consumers and companies alike. The flows of a company’s cash are summarized on a company’s statement of cash flows (Gibson, 2011). The cash flow statement provides information regarding the effectiveness of company management in operating the business, how the company’s money is derived, and the way funds are being spent (Megan, Hategan, Caciuc, & Cotlet, 2009). A company’s management uses the statement of cash flows to assist with budgeting as it can predict cash flows in the future (Megan et al., 2009). Additionally, investors use it to assess the financial health of a company (Gibson, 2011; Megan et al., 2009). Technology companies have experienced significant growth in the new millennium as the demand for access to immediate information has increased and the use of the internet has become mainstream. This paper will discuss Google Inc. (Google), its cash flows, its status as a growth firm, and supplemental information disclosed in its statements of cash flows. Furthermore, it will discuss the company’s public offering of stock in 2006 and why this was likely to be warranted. Google is an internet technology company motivated to advance the means by which people are afforded access to information (Google, 2014). It has become a top internet entity and is one of the most recognized brands in the world (Google, 2014). It generates its revenues through targeted advertising, mobile

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