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Q
uantitative
R
easoning &
P
roblem
S
olving
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© 2014 Pacific Crest
I
nformation
What you need to know
R
eadings
M
ethodology
A
nalyzing an
I
ncome
S
tatement
Scenario:
Analyze the 3-year income statement from Google, Inc. shown here.
Google, Inc.
All numbers in thousands
Period Ending
31-Dec-13
31-Dec-12
31-Dec-11
Total Revenue
59,825,000
50,175,000
37,905,000
Cost of Revenue
25,858,000
20,634,000
13,188,000
Gross Profit
33,967,000
29,541,000
24,717,000
Operating Expenses
Research Development
7,952,000
6,793,000
5,162,000
Selling General and Administrative 12,049,000
9,988,000
7,813,000
Non Recurring
-
-
-
Others
-
-
-
Operating Income or Loss
13,966,000
12,760,000
11,742,000
Income from Continuing Operations
Total Other Income/Expenses Net
530,000
626,000
584,000
Earnings Before Interest And Taxes 14,496,000
13,386,000
12,326,000
Interest Expense
-
-
-
Income Before Tax
14,496,000
13,386,000
12,326,000
Income Tax Expense
2,282,000
2,598,000
2,589,000
Minority Interest
-
-
-
Net Income From Continuing Ops 12,214,000
10,788,000
9,737,000
Non-recurring Events
Discontinued Operations
706,000
$ (51,000.00)
-
Other Items
-
-
-
Net Income
12,920,000
10,737,000
9,737,000