1. Andrew Clay Kearney ACG2021.008

2. Through continual innovations, Google has managed to outlast the tech-stock boom, and has posted positive growth since its inception in 1998. http://www.investor.google.com/pdf/2004_AnnualReport.pdf

3. Chief Executive Officer: Dr. Eric Schmidt Dr. Eric Schmidt Location of home office: 1600 Amphitheatre Parkway Mountain View, CA 94043 1600 Amphitheatre Parkway Mountain View, CA 94043 Ending date of latest fiscal year: December 31 st, 2004 December 31 st, 2004 Description of the principal products: Google generates revenue through highly targeted advertising and online search services. Google generates revenue through highly targeted advertising and online search services. Main geographic area of business: Google is a global corporation with 112 international domains, and over half its traffic coming outside the United States. Google is a global corporation with 112 international domains, and over half its traffic coming outside the United States.

4. Independent Auditors : Ernst & Young LLP Ernst & Young LLP 560 Mission St # 1600 San Francisco, CA 94105 The Independent Auditors state that the Financial Statements presented by Google, Inc. accurately portray the financial position of the company. Google, Inc. has followed the standard accounting principles since the Independent Auditors began auditing Google, Inc. in 2003.

5. Most recent stock price: $370.81 Twelve month range: $196.03 – $370.81 Dividend per share: $0.00- Google, Inc. has never declared or paid any cash dividend on common stock, nor does it intend to pay dividends in the foreseeable future, all earnings are retained. Date of the above information: October 31 st, 2005 Despite the high cost of shares and the lack of dividends paid, I strongly suggest that those who do not own shares of Google, Inc. buy stock immediately. Those already owning stock should expect to continue receiving massive gains in the market. Since public trading began on August 19, 2004, the stock has grown at a rate of 436%.

6. Google, Inc. has shown continual innovation since its birth as a beta search engine in 1998. Beginning its operations simply operating as a search engine, Google added a search bar to its arsenal, serving to block pop-ups and allow quick searches. Google expanded by purchasing Applied Semantics, Inc. in September 2003. Applied Semantics had developed AdSense, an advertising program that enabled the engine to profit by selling advertisements associated with particular searches. This increased page hits, and advertising dollars accordingly. The low cost of maintenance combined with the continual advertising profit, and retention of earnings has led to great technological development. Google purchased Keyhole, Inc. in October 2004, and used their technology to recently launch Google Earth, a free service that enables users to view satellite imagery all over the Earth. Upgraded versions are being sold for profit. Along with its image searches, Google has added video searches. Google has taken steps to enhance wireless services worldwide, now allowing Google users to search from portable devices. Though highly secretive about development plans, there are rumors of development of a web browser and operating system comparable to Microsoft Windows. Markets: Quote Snapshot Google | What a lot of wheatgrass | Economist.com

7. Google, Inc. uses a multi-step format for its Consolidated Statement of Income. 2002 Revenues $3,189,223 $1,465,934$439,508 Operating Expenses $2,549,031 $1,123,470$253,042 Net Income $399,119 $105,648$99,656 (In Millions) The income statement shows that Google, Inc. continues to grow despite the fact that tech firms began to lose value in 2002. On the contrary, Google continually pumped earnings into development, and has subsequently increased in value. 20032004

8. Total Assets = Total Liabilities + Shareholders’ Equity (In Millions) 2004$3,313,351= $384,295 +$2,929,056 2003$871,458= $282,688 + $588,770 Total Assets increased by over 300% from 2003-2004 while total liabilities increased by less than 50% in that timeframe. The increase in Total Assets and Shareholders’ Equity comes as a result of Google, Inc. beginning trading on NASDAQ.

9. ~Google shows Cash Flows from Operations to be greater than Net Income in both 2003 and 2004 ~Google has grown every year by expanding its horizons on the world-wide web. With a new innovation each year, Google has moved to the forefront of online searches. ~Google finances its operations primarily through Stockholders’ Equity. Very little debt financing is used by Google. ~Google has seen an increase in cash in each of the past two years.

10. Google follows the Generally Accepted Accounting Policies and shows no significant alternative practices.

11. Working Capital (in millions)$426,873$148,995 Current Ratio7.913.70 Debt-to-Equity Ratio.13.48 20042003 Working capital had a great increase from 2003-2004. Additionally, Google is showing more efficiency in its ability to finance. The low amount of borrowed capital has allowed Google the autonomy that has perpetuated its growth.

12. Profit margin20.3 %23.6 % Return on assets19.6 % 39.8 % Return on equity22.2 %58.9 % 20042003 Google’s efficiency in turning dollars into profits has decreased in each case. However, an improvement would have proven to be nearly impossible considering the previous efficiency. Google’s growth and commitment to development has led to this decrease in profitability, but will ensure future and greater gross profit.

13. Price/EPS 93.13111.00 Dividend yield0% 0% 20042005 (6/30)* Price/Earnings Ratio has shown an increase in the first six months of 2005. It has been during this time that Google has experienced massive growth on the stock market. *2005 Second Quarter information was used since Google made its debut on NASDAQ in August of 2004.