Accounting Assignment

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Introduction:

The purpose of this research is to analyze the information contained in the financial statements that is income statement and balance sheet of Yahoo! Inc. Yahoo! Inc. fiscal year ends on 31st December and operates under technology sector and internet information providers industry. It provides search and display advertising services on yahoo properties and affiliate sites worldwide. Hence its focus is on informing, connecting and entertaining its users.

Financial statements:

Yahoo! Inc.’s total assets at the end of its most recent annual reporting period, 2014 was $61,960,344 thousands while its total assets at the end of previous annual reporting period, 2013 was $16,804,959 thousands. Total assets information is important as it represents items owned by the company. Yahoo! Inc. can use this information in asset performance analysis which includes calculation of: cash conversion cycle, return on asset ratio and fixed asset turnover ratio.

Yahoo! Inc. had $2,667,916 thousands cash and cash equivalents at the end of its most recent annual reporting period.

Yahoo! Inc. accounts payable at the end of its most recent annual reporting period , 2014 was $4,191,618 thousands while its accounts payable at the end of previous annual reporting period, 2013 was $1,045,813 thousands.

Yahoo! Inc.’s net revenues for the last three annual reporting periods were: $4,618,133 thousands, $4,680,380 thousands and $4,986,566 thousands for the years 2014, 2013 and 2012 respectively.

Yahoo! Inc. net income for the two most recent annual reporting period was $7,521,731 thousands and $1,366,281thousands for the years 2014 and 2013 respectively. The change in dollars in its net income from the most recent annual reporting period to the previous annual reporting period is $6,155,450 thousands.

Yahoo! Inc.’s total current assets at the end of the most recent annual reporting period, 2014 was $9,699,107 thousands while its total current assets at the end of the previous annual reporting period, 2013 was $5,025,857 thousands.

The information found in the financial statements is used for the analysis and evaluation of the company’s performance, liquidity, efficiency and profitability. This information is essential to all company stakeholders such as potential investors, employees, suppliers. In the above information, stakeholders will be interested on amount of total assets, current assets, net income and net revenue as it will help in calculation of ratios used in analyzing the company’s efficiency, liquidity and profitability.

YAHOO! INC. INCOME STATEMENT AND BALANCE SHEET

Yahoo! Inc. (YHOO)

Income Statement

View: Annual Data | Quarterly Data

All numbers in thousands

Period Ending	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012
Total Revenue	4,618,133	4,680,380	4,986,566
Cost of Revenue	1,298,314	1,349,380	1,620,566

Gross Profit	3,319,819	3,331,000	3,366,000

	Operating Expenses
	Research Development	1,207,146	1,008,487	885,824
	Selling General and Administrative	1,809,011	1,700,375	1,641,819
	Non Recurring	191,864	67,321	236,170
	Others	66,750	44,841	35,819

	Total Operating Expenses	3,274,771	2,821,024	2,799,632


Operating Income or Loss	142,942	589,926	566,368

	Income from Continuing Operations
	Total Other Income/Expenses Net	10,467,333	123,307	4,647,839
	Earnings Before Interest And Taxes	10,610,275	713,233	5,214,207
	Interest Expense	-	-	-
	Income Before Tax	10,610,275	713,233	5,214,207
	Income Tax Expense	4,038,102	153,392	1,940,043
	Minority Interest	(10,411)	(10,285)	(5,123)

	Net Income From Continuing Ops	7,619,625	1,446,231	3,945,479

	Non-recurring Events
	Discontinued Operations	-	-	-
	Extraordinary Items	-	-	-
	Effect Of Accounting Changes	-	-	-
	Other Items	-	-	-


Net Income	7,521,731	1,366,281	3,945,479
Preferred Stock And Other Adjustments	-	-	-

Net Income Applicable To Common Shares	7,521,731	1,366,281	3,945,479

Yahoo! Inc. (YHOO)

Balance Sheet

View: Annual Data | Quarterly Data

All numbers in thousands

Period Ending	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012

Assets
Current Assets
	Cash And Cash Equivalents	2,667,916	2,077,590	2,667,778
	Short Term Investments	5,327,412	1,330,304	1,516,175
	Net Receivables	1,032,704	979,559	1,008,448
	Inventory	-	-	-
	Other Current Assets	671,075	638,404	460,312

Total Current Assets	9,699,107	5,025,857	5,652,713
Long Term Investments	44,588,259	5,015,847	4,678,582
Property Plant and Equipment	1,487,684	1,488,518	1,685,845
Goodwill	5,163,654	4,679,648	3,826,749
Intangible Assets	470,842	417,808	153,973
Accumulated Amortization	-	-	-
Other Assets	550,798	177,281	1,105,391
Deferred Long Term Asset Charges	-	-	-

Total Assets	61,960,344	16,804,959	17,103,253

Liabilities
Current Liabilities
	Accounts Payable	4,191,618	1,045,813	993,306
	Short/Current Long Term Debt	-	-	-
	Other Current Liabilities	336,963	294,499	296,926

Total Current Liabilities	4,528,581	1,340,312	1,290,232
Long Term Debt	1,170,423	1,110,585	124,587
Other Liabilities	143,095	116,605	-
Deferred Long Term Liability Charges	17,332,653	1,106,860	1,082,831
Minority Interest	43,755	55,688	45,403
Negative Goodwill	-	-	-

Total Liabilities	23,218,507	3,730,050	2,543,053

Stockholders' Equity
Misc Stocks Options Warrants	-	-	-
Redeemable Preferred Stock	-	-	-
Preferred Stock	-	-	-
Common Stock	945	1,015	1,187
Retained Earnings	8,937,036	4,267,429	5,792,459
Treasury Stock	(712,455)	(200,228)	(1,368,043)
Capital Surplus	8,496,683	8,688,304	9,563,348
Other Stockholder Equity	22,019,628	318,389	571,249

Total Stockholder Equity	38,741,837	13,074,909	14,560,200

Net Tangible Assets	33,107,341	7,977,453	10,579,478

REFERENCE:

· Income statement

http://finance.yahoo.com/q/is?s=YHOO+Income+Statement&annual

· Balance sheet

http://finance.yahoo.com/q/bs?s=YHOO+Balance+Sheet&annual