Purchase Solution

Analysis and justification of business investment

Not what you're looking for?

Ask Custom Question

Based on financial statements from three differernt companies, why is Google a good company to invest in?

Purchase this Solution

Solution Summary

This solution explains the justification of business investment . The sources used are also included in the solution.

Solution Preview

Step 1:
The three companies selected for comparison and selection of the investment are Google Inc, Ashland Inc, and Amazon.com Inc. The financial statements can be found at: http://investor.google.com/earnings.html, http://investor.ashland.com/annuals.cfm, and http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-reportsAnnual

First we compare the incomes of the companies over a period of five years. The income of Google has grown steadily from $4.2 billion in 2007 to $9.7 billion in 2011. There is no year during this period when the income has declined. The income of Ashland Inc. has increased from $230 million in 2007 to $414 million in 2011. However the income declined in 2008 and in 2009 it declined further and there was a net loss of $281 million. The net income of Amazon.com has increased from 476.0 million in 2007 to $631 million in 2011. However, the income in 2011 has declined from the $1.15 ...

Purchase this Solution


Free BrainMass Quizzes
Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Basics of corporate finance

These questions will test you on your knowledge of finance.