Question

pre: 0 of 1 pt 8 of 8 (2 complete) HW Score: 12.5%, 1 of 8 P3-14 (similar to) Question Help Related to Checkpoint 3.3) (Analyzing the cash flow Statement) Google, Inc. (GOOG), is one of the most successful Internet firms, and it experienced very rapid growth in revenues from 2011 through 2014. The cash flow statements for Google, Inc. spanning the period are found here: Answer the following questions using the information found in these statements: a. Is Google generating positive cash flow from its operations? b. How much did Google invest in new capital expenditures over the period? c. Describe Google's sources of financing in the financial markets over the period? d. Based solely on the cash flow statements for 2011 through 2014, write a brief narrative that describes the major activities of Google's management team over the period a. Is Google generating positive cash flow from its operations? (Select the best choice below.) Is Goodia Googces of income O A Google has generated positive cash flow from its operations during the years 2011, 2012, 2013, and 2014 OB. Google has generated positive cash fow from its operations during the years 2012, 2013, and 2014 OC. Google has generated positive cash flow from its operations during the years 2011, 2012, and 2014 anna hoe naaraat nethach finde naratne in the wrontatos Click to select your answer and then click Check Answer 13 pano remaining

Answer 1

a. Yes, Google has generated positive operating cash flows in all four financial years in data table as provided.

for example, operating cash flow in financial year 12/31/2014 was $22,269 millions.

b. Google investment in capital expenditure:

12/31/2014 = $10958

12/31/2013 = $7347

12/31/2012 = $3213

12/31/2011 = $3477

Total = $24995 million

c. Goggle's source of financing over the period:

As per details depicted in data table it is clearly evident that Goggle's source of financing for financing and investing needs have been met from cash flows from operating activities.

d. Narrative of major activities carried on by Goggle:

• Goggle has been generating impressive cash flows from operating activities and utilizing those cash flows substantially for expansion purposes as evidenced by negative cash flows from investing activities. High capital expenditure and other financing investing cash outflows clearly shows Goggle's clear focus on further expanding its business.