typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all
sides; references must follow APA

Google, a leader in Internet information searching, is being challenged by other big names in Internet
technology. Compare and contrast Google’s business model and financial management with Microsoft’s,
which launched Bing.
Access Google and Microsoft’s annual reports and financial statements at their Websites. you may access some other sites and or sources to understand the how to analyze an income
statement and a balance sheet. For example, the following sites can provide guidance:
• Understanding the Income Statement at: http://www.investopedia.com/articles/04/022504.asp
• Reading the Balance Sheet at: http://www.investopedia.com/articles/04/031004.asp
However, if these sites are not available, there are other sites that can be accessed that will provide
sufficient information and guidance.
Write a 7-8 page paper in which you:
1. Calculate or identify from each company’s most recent annual report the six (6) specific financial
ratios listed and provide as an appendix to the paper.
• Liquidity measurement ratio:
o Current ratio
• Profitability indicator ratios:
o Return on assets
o Return on equity
• Debt ratio:
o Debt ratio
• Operating performance ratio:
o Fixed asset turnover ratio
• Cash flow indicator ratio:
o Dividend payout ratio
• Investment valuation ratio:
o Price / Earnings ratio
(If you need help with ratios you could access Web sites that provide guidance such as:
http://www.investopedia.com/university/ratios/
However, if this site is not available, other sites can be accessed that offer similar information.)
2. Compare and contrast each company’s business model: (1) core business, (2) leading products
and/or services, (3) management/leadership style, and (4) innovation track record.
3. Use the financial ratio analysis and explain which company is better able to withstand a major
recession.
4. Explain what the profitability ratios can tell about Google and Microsoft’s performance and how
that information would influence investing decisions.
5. Identify and explain three (3) primary financial-based guidelines that should be used when
selecting which of these two companies to invest in.
6. Use a minimum of three (3) quality external resources from the last three (3) years to support the
content of the paper. (Note: Do not use Wiki sites.)