Question: Refer to the 2013 balance sheet for
Refer to the 2013 balance sheet for Google in Appendix A. What is the par value per share of its preferred stock? Suggest a rationale for the amount of par value it assigned.
Google’s balance sheet from Appendix A:
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Google Inc. CONSOLIDATED BALANCE SHEETS (In millions, except share and par value amounts which are reflected in thousands, and par value per share amounts) As of December 31 2012 2013 Assets Current assets: Cash and cash equivalents 14,778 2$ 18,898 Marketable securities 33,310 39,819 Total cash, cash equivalents, and marketable securities (including securities loaned of $3, 160 and $5,059) Accounts receivable, net of allowance of $581 and $631 48,088 58,717 7,885 8,882 Inventories 505 420 Receivable under reverse repurchase agreements 700 100 Deferred income taxes, net 1,144 1,526 Income taxes receivable, net 408 Prepaid revenue share, expenses and other assets 2,132 2,827 Total current assets 60,454 72,886 Prepaid revenue share, expenses and other assets, non-current 2,011 1,976 1,976 Non-marketable equity investments Property and equipment, net Intangible assets, net 1,469 11,854 16,524 7,473 6,066 Goodwill 10,537 11,492 Total assets $ 93,798 $ 110,920 Liabilities and Stockholders’ equity Current liabilities: Accounts payable 2$ 2,012 2,453 Short-term debt 2,549 3,009 Accrued compensation and benefits 2,239 2,502 Accrued expenses and other current liabilities 3,258 3,755 Accrued revenue share 1,471 1,729 Securities lending payable 1,673 1,374 Deferred revenue 895 1,062 Income taxes payable, net 240 24 Total current liabilities 14,337 15,908 Long-term debt 2,988 2,236 Deferred revenue, non-current 100 139 Income taxes payable, non-current Deferred income taxes, net, non-current 2,046 2,638 1,872 1,947 Other long-term liabilities Commitments and contingencies Stockholders' equity: Convertible preferred stock, $0.001 par value per share, 100,000 shares authorized; no shares issued and outstanding Class A and Class B common stock and additional paid-in capital, $0.001 par value per share: 12,000,000 shares authorized (Class A 9,000,000, Class B 3,000,000); 329,979 (Class A 267,448, Class B 62,531) and par value of $330 (Class A $267, Class B $63) and 335,832 (Class A 279,325, Class B 56,507) and par value of $336 (Class A $279, Class B $57) shares issued and outstanding Class C capital stock, $0.001 par value per share: 3,000,000 shares authorized; no shares issued and outstanding 740 743 22,835 25,922 125 Accumulated other comprehensive income Retained earnings Total stockholders' equity 538 48,342 61,262 71,715 87,309 Total liabilities and stockholders' equity 93,798 110,920 See accompanying notes.
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