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Financial Forecast Assumptions
Google Inc. (GOOG)
(Dollars and Shares in Millions, Except Per Share Amounts)

 Actual Forecast
  12 Months  
12/31/03  		 12 Months  
12/31/04  		 12 Months  
12/31/05  		   12 Months  
12/31/06  		 12 Months  
12/31/07  		 12 Months  
12/31/08  		 12 Months  
12/31/09  		 12 Months  
12/31/10  
 
Year-to-Year Change in Net Sales NA   117.5%   92.5%    
 
Gross Margin % 57.3%   54.3%   58.1%    
 
Operating Expenses as % of Net Sales 33.9%   34.2%   25.2%    
 
Other Income (Expense) * $4   $10   $124    
 
Interest Rate on Borrowings * NA   NA   NA    
 
Interest Rate on Subordinated Debt * NA   NA   NA    
 
Income Tax Rate 69.5%   38.6%   31.6%    
 
Cash * $335   $2,132   $8,034    
 
Number of Days Sales in Accounts Receivable 38.6   35.7   40.9    
 
Number of Days Cost of Goods Sold in Inventory 0.0   0.0   0.0    
 
Other Current Assets $71   $249   $279    
 
Intangibles * $105   $194   $278    
 
Investments $0   $0   $0    
 
Other Assets $17   $47   $31    
 
Current Maturities * $5   $2   $0    
 
Number of Days Cost of Goods Sold in Accounts Payable 26.8   8.3   16.5    
 
Number of Days Operating Expenses in Accrued Expenses 44.1   48.5   73.5    
 
Taxes Payable * $21   $0   $28    
 
Other Current Obligations * $89   $123   $216    
 
Other Current Liabilities * $15   $37   $73    
 
Term Loan * $2   $0   $0    
 
Subordinated Debt * $0   $0   $0    
 
Other Long Term Obligations * $11   $13   $13    
 
Other Liabilities * $33   $31   $95    
 
Common Stock * $726   $2,583   $7,478    
 
Preferred Stock * $44   $0   $0    
 
Other Equity * $(374)   $(249)   $(119)    
 
Treasury Stock * $0   $0   $0    
 
Capital Expenditures (Net) NA   $321   $838    
 
Dividends as % of Net Earnings * 0.0%   0.0%   0.0%    
 
Depreciation (Net) NA   $130   $255    
 
Estimated Borrowing Base as a % of Accounts Receivable 80.0%   80.0%   80.0%    
 
Estimated Borrowing Base as a % of Inventory 35.0%   35.0%   35.0%    
 
Estimated Borrowing Base as a % of
      Property, Plant and Equipment (Net)		 50.0%   50.0%   50.0%    
 
Common Shares Outstanding (Fully Diluted) 257   273   292    

* Changes to these assumptions will change your Multi-year forecast but will not change the intrinsic valuation model default assumptions.