The document provides an analysis of Google Inc.'s revenue and forecasts for Google Glass. It uses time series forecasting methods like moving average and exponential smoothing to predict Google's Q1 2014 revenue will be $16.86 billion to $15.46 billion. It also performs a break even analysis for Google Glass, determining Google needs to produce 893,017 units to break even given fixed and variable costs. Finally, it discusses using seasonal forecasting to predict Google's profits over the next year by examining trends in historical data from 2012 to 2015.

1. Time Series for
Google Inc.
and Analysis for Google Glass.

2. Introduction
Google Inc.
Google is a global technology leader
focused on improving the ways people connect
with information. Google build products and
provide services that improve the lives of
billions of people globally.

3. Introduction
Google Inc.
Google’s primary source of revenues is to
deliver relevant, cost-effective online
advertising.
Businesses use google AdWords program and
AdSense program to promote their products
and services with advertising on both Google
owned properties and publishers' sites across
the web.

4. Time-Series Forecasting:
Time series forecasting uses periods of historical
data to predict the future data for
revenue or profit.
Problem #1.
Predict March 2014 quarterly revenue for Google
using Time-series forecasting.
We will forecast March 2014 quarterly revenue based on
historical quarterly data for 24 quarters starting from March 2008.

5. Moving Average Method:
 —Technique that averages a number of the most
recent actual values in generating a forecast.

6. Moving Average Graph:
The moving average method predicts the revenue of $16.86 billion.

7. Exponential Smoothing Method:
Exponential smoothing technique
is used in time series data to
make sophisticated forecasts.

8. Exponential Smoothing Graph:
The exponential smoothing method with smoothing coefficient of α = 0.45
predicts the revenue of $15.46 billion.

9. Linear Trend Graph:

10. Break Even Analysis:
Cost-volume analysis
—
Focuses on the relationship between cost, revenue, and
volume of output
—Fixed Costs (FC) - —tend to remain constant regardless of
output volume
—Variable Costs (VC) - —vary directly with volume of output
—VC = Quantity(Q) x variable cost per unit (v)
—Total Cost
—TC = FC + VC
—Total Revenue (TR)
—TR = revenue per unit (R) x Q

11. Break Even Analysis:
We calculated break even for Google
Glass based on fixed cost of
$50,000,000, variable cost of $194 and
revenue per unit of $249.99

12. Break Even Analysis:
Break-Even Point (BEP)
— The volume of output at which total
cost and total revenue are equal
—Profit (P) = TR – TC = R x Q – (FC +v x
Q) = Q(R – v) – FC
QBEP = FC / (R-v)

13. Break Even Excel Graph:
Google need to produce 893,017 units of Google
Glass to reach break-even point.

14. Seasonal Forecasting:
Use of Historical Data:
Trends of a Business Organization in the Future
Profits for a Predicted Period of Time.
Year 2012-2015

15. Seasonal Forecasting:
Problem:
Profit of Google Inc. in next one year
Solution:
Seasonal Forecasting
Examines the market at a wider perspective
Crucial in creating:
Market Plans
Budget
Cash Flow

16. Seasonal Forecasting Excel Graph: