Google Inc. was able to generate positive cash flow from operations consistently. In 2012, it generated $16,619 million which increased to $18,659 million in 2013 and $22,376 million in 2014. This upward trend shows that Google Inc. is able to make sufficient cash from its operations to pay its obligations.
For the current assets section, depreciation expense went up by 26.68% due to the purchases of new equipment worth $10,959million in 2014. The amortization expense also increased by 25.73% in 2014 compared to 18.89% in 2013.
The accounts receivable was 25.55% in 2014. The sales revenue had increased from $55,519million in 2013 to $66,001million in 2014. This increase in credit sales resulted in net account receivable of $875million in 2014 from $100million in 2013.
In the current liabilities section of Google Inc., there were ups and down in the various accounts. The accounts payable decreased by 27.93% whereas, the accrued expenses went up by 6.17%. Deferred revenue decreased by 175.11% so also did accrued revenue share by 3.54%.
The cash flow statements for Microsoft, Corp. for the past three years had an up and down
…show more content…
showed positive influence for the last three years. However, net cash flows in financing activities showed a up and down trend as operating activities did. For the financing cash flow items, there were the huge decreases from 2012 to 2014. However, net borrowings increased by 21.28% in 2013. It also influenced the negative impact on other financing activities. In 2014, net borrowings rapidly increased by 96.83% which mainly caused the positive impact on cash from financing activities. Net cash flows from financing activities showed the increased by 13.39% from 2012 to 2013. However, from 2013 to 2014, it showed the slight decrease by 1.79%. In 2014, Microsoft Corp. had a larger increase in net income and depreciation and smaller increase in net income adjustment compared to other past two
Accounts receivable ending balance= Beginning balance +sales on Account - cash receipts -sales returns and allowances- charge of uncollectible account
(d) The account receivable growth rate from 2012 to 2013 was a decrease of 5.52% whereas the allowance for doubtful accounts went up by 12.10%. The sales account had a growth rate of 33.81%. From these numbers we see that the sales of Hydrogenics Corporation increased from 2012 to 2013. Since there was a decrease in the accounts receivable,
The financial statements for Exxon in 2014 are a slightly declined than it made in 2013. Exxon experienced decrease in operating income from 2013 to 2014 of $74 billion to $61 billion. Operating income indicates how much a company earned from business activities, the company has less profitable. Their operating margin Exxon made in 2014 is also decreased. It is 4% less than they made in 2013. Exxon must figure out their operating performance, include Cost of Goods Sold or fixed costs and increase revenue performance. The sales revenues that companies made in 2014 are $365
Particulars The Hershey Tootsie Rolls Net sales (A) $ 5,671,009 $ 528,369 Beginning receivable $ 390,061 $ 41,895 Ending receivable $ 410,390 $ 37,394 Average receivable (B) $ 400,226 $ 39,645 Account receivable turnover C = (A/B) 14.17 13.33 Average collection period 365/C 25.76 27.39 As can be seen from the above, the table shows that both The Hershey and Tootsie Rolls companies have very low receivable periods due to the nature of the industry and also reflects the efficient cash management and receivable management on the part of both the companies.
General Motors is a long established corporation, which has had a profound affect on the American people and the American economy. The corporation has prided themselves on producing automobiles at the lowest cost, while remaining a style leader of the industry. Bankruptcy with a government buy out in 2009 caused reorganization, a battle to transform, reinventing a new GM corporate culture. In 2014, Generals Motors topped the list as one of the nine most damaged brands. What caused General Motors to get such a tarnished reputation, was it a scandal-laden culture and mismanagement, putting profit over safety with massive cover-ups, or a combination of both?
Present Position: Generating positive return on any kind of input is Zynga’s biggest issue at this point, with generating return on equity being the main issue in particular. Zynga has sustained negative ROE since its initial public offering, despite extremely attractive gross profit margins over the same time period. At first glance, a logical conclusion would be that Zynga is not doing a very good job of keeping its costs down in order to preserve the revenue that equity investors are helping to facilitate. But on closer inspection of the income statement, it becomes very clear that almost half of Zynga’s total revenue each year goes to research and development. This category is not included in the cost of revenue on the income statement, which is treated as Cost of Goods Sold (COGS) in this instance. But an expenditure of this amount seems to make sense, given the nature of the industry and its reliance on research and development of new intellectual property.
When analyzing Apple’s Accounts Receivable Turnover Ratio, the ratio is lower than the average industry. The ratio shows 11.96 times in account receivable collections during the year and how efficiently Apple uses its assets (Miller-Nobles, Mattison and Matsumura 781-782). Account receivable collections will increase after the release of the iPhone 6 and iPhone 6Plus by mid-September. Therefore, increasing the ratios of account receivable turnover and inventory turnover.
On June 1st 2009, General Motors entered bankruptcy protection and has been fighting there way back ever since. In November of 2010, they sold a portion of their stock holdings and bought them all back by the end of 2012 allowing the company greater financial flexibility (General Motors, 2016).
Google Inc. is a company that started in 2002 and has gradually grown to become an international technology company. Google’s business is mainly focused around vital areas, like advertising, search, operating systems and platforms, hardware products and enterprise. The company produces its revenue mainly by distributing online advertising. Google also produces revenue from Motorola through selling products. The company offers its services and products in over 100 languages and in over 50 regions, territories and countries.
P&G’s purpose is to provide branded products and services of superior quality and value that improve the lives of the world’s consumers. P&G values their employees through leadership, ownership, integrity, passion for winning, and trust. P&G entices and recruits best people in the world, builds their organization by promoting and rewarding from within, and believes that their employees will always be the most important asset. P&G has many principles such as (1) showing respect to all individuals, (2) valuing differences, (3) inspiring and enabling employees to achieve high expectations, standards, and challenging goals, (4) valuing personal mastery, (5) believing that all individuals can and want to contribute to their fullest potential, (6)
The current situation of the Ford Motor Company, revenue of $44 billion, 6 percent above second quarter 2006. The company net income of $750 million, or 31 cents per share, for the second quarter of 2007. Profit of $258 million, or 13 cents per share, from continuing operations excluding special items. There was a significant year-over-year improvement for all automotive operations. Ford Motor Credit pre-tax profit of $112 million. Cost reductions of $600 million; $1.1 billion through the first half of 2007. There was automotive gross cash at June 30, 2007 of $37.4 billion.
2009 was a negative period for the United States economy. A big recession hit the country, and the founders of Google were trying to make a plan in order to make to limit the damage caused by an economic decline. Brin and Page the two creators of the giant Google were shocked form the situation that was occurring. Their company was feeling the effect of the economic downturn. Google’s stock price dropped 51 percent. The two entrepreneurs were trying to figure out a way to keep the company from drowning. Google main problem was how to maintain the culture that made the company successful in the previous two years. Some consequences that the company had to face was eliminating products that
Google’s internal structure stability can be influenced by external factors. To ensure the right decisions made, they must complete external and internal analysis. Google’s must contend with external environment influences, which are political, economical, and a technological. Day after day must be able to understand how the external environment influences can provide advantages to obtaining opportunities but on the downside expose the threats that Google has to overcome to be successful. For Google to maximize the market opportunities, Google must recognize its internal value, rarity, and organization. To exploit the company’s strength and weakness, Google must comprise an SWOT analysis. When Google accomplishes the SWOT analysis, they will understand the company’s strengths and weaknesses. It will also demonstrate the environmental opportunities and the threats that are facing in this competitive market. Once this analysis completed, Google can plan strategic plan to utilize their strengths, improve upon their weaknesses, maximize their opportunities, and eliminate threats that can endanger their growth as a company.
The first aspect of the balanced scorecard is the financial perspective, which is responsible for answering the following questions: “To succeed financially, how should we appear to our shareholders?” Our finance objective for Google is to increase net revenue. Google’s revenue has shown a steady growth over the years. Google’ s revenue in 2011 was 37,905,000 and in 2012 it was 50,175,000. In one year, Google manage to exceed its 2011 revenue by 12,270,000. Google, is currently in their fourth quarter of 2013. Each quarter’s revenue in 2013 is noticeably greater than the quarters in 2012. In the third quarter of 2013, Google generated total revenues of 14,893,000, compared to 2012 third quarter of 13,304,000
The debt ratios increased by 2.7% to 57% more than double the industry standard of 24.5%. The long term debt increased from $700,000 to $ 1,165,250 an increment of 66.5% in the year 2002. The company is currently highly leveraged thus it needs to work on reducing long term debts and continue to increase assets. The times interest earned ratio dropped by 0.3 to 1.6 in the year 2003. The company could face difficulties making interest payments in case of a sales slump.