Plese show your work. Cash Flow Statement (Related to Checkpoint 3) (Analyzing t
ID: 2814217 • Letter: P
Question
Plese show your work. Cash Flow Statement (Related to Checkpoint 3) (Analyzing the cash flow statement) Goggle, Inc. is an Internet firm that has experienced a period of very rapid growth in revenues period 2007-2010. The cash flow statements for Goggle, Inc. spanning the period are 14. as follows: 12 Months Ending In Millions of U.S. Dollars Net income Depreciation expense Changes in working capital 12/31/2010 12/31/2009 12/31/2008 12/31/2007 $4,000 $3,000 $1,500 S 400 150 (250) 300 $(3.600) $(7,000) $(3,300) $(2,000) Cash from investing activities (.600 7000 3.300 $2,000 1,000 600 600 50 300 50 Cash from operating activities 5600 3,650 $1,850 Capital expenditures Interest and financing cash flow items Total cash dividends paid Issuance (retirement) of stock Issuance (retirement) of debt 400 0 24 0 600 0 2,400 0 0 0 4,400 5 0 1,200 Cash from financing activities S 424 $3,000 $4,398 $ 1.200 Net change in cash $ 2,424 S (350) $2,948 (500) Answer the following questions using the information found in these statements: a. Is Goggle generating positive cash flow from its operations? b. How much did Goggle invest in new capital expenditures over the last four years? c. Describe Goggle's sources of financing in the financial markets over the last four years d. Based solely on the cash flow statements for 2007 through 2010, write a brief nar- rative that describes the major activities of Goggle's management team over the last four years.
Explanation / Answer
2009
Investment in capital expenditure
Financing Activities
Issued stock
2007 - $1200
2008- $4400
2009-$2400
2010 - $24
Retirement of Debt
2007 - $5
2008 -$2
No dividend has been paid for last four years
interest from financing activities ( assuming held as investment)
2007 - $5
2008 - 0
2009 - $600
2010 - $400
Answer to Part D
particulars $ comment Operating Activities 2007 300 all 2008 1850 are2009
3650 positive cashflows 2010 5600