Why Google Is An American Public Corporation And The Internet Service Provider

Google receive their revenues from the advertising of their products. All services Google provide like Google Doc, Google Maps, Gmail, etc.. are expensive to create, but having users spend time on Google applications increase the revenues for the ownership. Google stock price has been increasing recently which helps owners earn money off from creating applications like Google Doc. The more applications Google create the more money they earn. Recently the world has been depending on IT in their entire life. People now would rather work on a fully online based application like Google Doc than downloading applications like Microsoft Office.

A vertical and horizontal analysis of each company's balance sheet and income statement in this particular case will be enlightening. A vertical analysis will for instance shed some light on how revenue is being used. In this case, each component of the companies' financial statements will be converted into a percentage of a key component of either the balance sheet or the income statement. A special common size balance sheet and income statement will be utilized to ease comparison. The

Google Inc. is one of the leading computer search engines in the world and is continuing to grow as the

From table 3, we can see that accounts receivables, inventory and other current assets accounts, their percentage of total assets didn’t have big difference over the three years trend. The increase of cash and cash equivalent from 7.1% of total assets in 2010 to 13% in 2011 is the main reason that total current asset in terms of the percentage of total assets had significant increase (from 33% to 40%).

Vertical Analysis or the common size analysis is calculated by dividing the Balance Sheet items by the company’s total assets. This number is then turned into a percentage for easier comparison. This percentage represents the growth within the company. Positive retained earnings and debt retention are shown through positive and negative percentages.

Due to the increased competition from Yahoo and Microsoft, it has posed a great threat to Google Company. Entry of such like companies in the market has been relatively easy and even offering similar services to the consumers is no longer a problem as unlike a while back, technology has greatly improved. With an improvement in technology, creating sites that help people access information from the internet has been quite cheap and all it calls for is the creativity of a company. Google, however, has been able to remain at the top of the chart. They have been able to come up with a user-friendly search engine for their clients, one that is easy to understand as well as easy to use. Also, Google has been able to cut on cost as they are able to create web pages using UNIX web servers which are relatively cheap. This makes it possible for them to minimize the cost of input and hence maximizing their profit margins. This makes it possible for them to hire qualified personnel, offer quality services, advertise their products, and even offer promotions, helping them overcome the competition in the market structure.

Accounting helps to measure an organizations activities, process data into reports, and translate the results to decision makers. Financial statements and reports help to present the company to the public in financial terms. The information on these data statements can used to evaluate the company through vertical and horizontal analysis. Vertical analysis is the proportional analysis of a financial statement. Normally, vertical analysis is done with a financial statement over a period of time. When using vertical analysis, a line item on a financial statement is listed as a percentage of another item (Harrison, 2015). A horizontal analysis is the comparison of information or ratios over a series of reporting periods. Horizontal analysis helps investors and analysts to control how a company has grown over time. Analysts and investors could use horizontal analysis to compare a company's growth rates in relation to its competitors and industry.

Google is not a slave to Wall Street – The reason being Google builds a corporate culture that will deliver its mission, and that it is principally organized to drive innovation.

For this research paper, I would like to select Google Inc. as a public company. This research paper would be helpful to prepare horizontal analysis of income statement and balance sheet of Google Inc. and to perform ration analysis to know the financial performance of the company.

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

Horizontal analysis is the comparison of a company’s historical financial information over a specific period of time. The analysis helps to determine whether an increase or decrease has taken place in particular areas of the financial performance. A horizontal analysis of Wynn’s income statement and balance sheet provides insight into their performance from 2013 and 2014. During this time period, Wynn’s assets increased 8%. Much of this growth was the result of a 37% increase in their investment securities and a 16% increase in their prepaid expenses. However, the firm did experience a 10% decrease in their cash and cash equivalents. The most drastic change occurred in the firm’s stockholder’s equity, which increased nearly 60%. This drastic increase is likely due to the increase in retained earnings over the same period, which increased from $66 million to $164 million. The horizontal analysis of the firm’s consolidated statements of income reveals mostly insubstantial. Wynn

Yahoo was an early success due to a combination of factors such as timing, hard work, and a good understanding of Web surfer’s tastes and needs.. In early 1995, Net mania was just flowering. It was a great time to be a young entrepreneur with an Internet idea. Dave Faldo and Jerry Yang saw a consumer need for classifying and differentiating web sights. Resting the urge to automate this process, Yahoo’s founders instead chose to manually perform this search, reviewing and classifying roughly 1000 sights a day. This approach combined with their decision to offer a free service lead to early success.

Horizontal analysis is the comparison of financial information in an organization’s statements over a certain period of time, while vertical analysis compares the percentage of each item in accounts, assets, and debt financing on a balance sheet or income statement.

As we can infer from the table above, Google‘s mission is consistent with its objectives in terms of how they complement each other. In its mission, Google promises to organize the world’s information and make it available for everyone to access. On the other hand, Google’s first objective is to provide information independent of any financial incentives. Moreover, they clearly state that their profits are mainly derived from advertising while information providing is for free. Google focuses on improving its operation by achieving higher quality products in order to better satisfy consumers, while the objectives precisely states that Google will employee all potential technological developments to improve users’ experience.

Professionally, Google is known as a company based in California that is labeled as an internet company which is multi-national. It provides online searching, as well as cloud computing, software, and advertising. The company actually didn 't start off as a company, but rather as a research project back in 1996. The project was being conducted by Sergey Brin and Larry Page who at the time were studying at Standford University as PhD students. At the time, in internet-land, the search engines that existed operated where they ranked the results by counting the number of times keywords results were on a page. The two students came with a better idea (called PageRank at the time), that looked at relationship between websites. It would rank websites by determining it 's relevance, which was based on the importance of pages, and the number of pages, and how it linked back to the main website. After the idea 's creation, the two founders made the project into a business, and changed the name to "Google", which is a neat miss-spelling of the word "googol" which had significance because it stands for the number one followed by one hundred zeros, and it related to their goal because they wanted to create a search engine that offered a large quantity of information.