Yahoo's financial statements for 2014 show an increase in cash and cash equivalents from 2013, demonstrating improved liquidity. Total current liabilities declined significantly from 2013 to 2014. These trends of increased liquid assets and reduced current liabilities improve the company's overall financial position and viability. Proper classification of assets in the balance sheet helps potential investors understand the company's property holdings and assess risks.

1. Financial Reporting - II
1
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 Analysis:
As per company’s balance sheet given below, company shows
its assets in proper headings. Under heading current assets all
current assets are shown in the order of liquidity. After current
assets company has shown its investments and non-current
assets. Thus, company assets are classified in the following
order:
a) Current Assets
b) Investments
c) Property, Plant, and Equipment
d) Intangible Assets
e) Other Assets
A cash equivalent is a highly liquid investment having a
maturity of three months or less. Examples of cash equivalents
are: Commercial paper; Marketable securities; Money market
funds; Short-term government bonds; Treasury bills.
At the end of the year 2014 company’s cash and cash
equivalents are of $2,667,778 thousands. The same at the end of
the year 2013 was $2,077,590 thousands. Thus, there is a
significant increment in cash and cash equivalents in the year
2014. This is a positive change so far company’s liquidity is
concerned.
Company’s total current liabilities at the end of its most recent

2. annual reporting period (2014) are $1,290,232thousands and the
same at the end of the year 2013 was $1,340,312thousands.
Thus, there is significant decline in company’s current
liabilities, which is excellent for the company from the liquidity
point of view.
Potential investor wants to know the financial viability of the
company and proper classification of the assets in the balance
sheet assists them to have a fair idea about company’s property.
Sufficient cash and cash equivalents ensures investors timely
payment of return on their investment by the company.
Creditors can also measure safety and timely payment of their
dues or claims on the company besides this it help the employee
to identify timely payment of their salaries.
The amount of current liability is a key factor of determining
company’s liquidity position. Sound liquidity position of the
company helps the investors, creditors to take their investment
decisions without any uncertainty.
FINANCIAL STATEMENTS OF YAHOO! INC.
Income Statement
View: Annual 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

3. 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

4. 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

5. 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

6. -
-
-
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

7. Balance Sheet
View: Annual 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

8. -
-
-
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

9. 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

10. 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
-
-
-

11. 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:
Yahoo Finance. (2015). Yahoo! Inc. (YHOO). Income
Statement. Retrieved from

12. https://in.finance.yahoo.com/q/is?s=YHOO&annual
Yahoo Finance. (2015). Yahoo! Inc. (YHOO). Balance Sheet.
Retrieved from
https://in.finance.yahoo.com/q/bs?s=YHOO&annual