Google Inc Case Analysis Paper

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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
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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
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