Using the balance sheet of Microsoft provided on the next page, answer the following questions. Please...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Using the balance sheet of Microsoft provided on the next page, answer the following questions. Please note that Microsoft fiscal year ends on June 30. 1. As of June 30, 2020, how much does Microsoft expect to collect from its customers in the future because of sales that were made prior to July 1, 2020? 2. Assume that Microsoft had written off $202 (million) of its accounts receivable as permanently uncollectible during the year ended June 30, 2020. How much bad debt expense did Microsoft record during fiscal year 2020? (In millions) June 30, Assets Current assets: Cash and cash equivalents Short-term investments Total cash, cash equivalents, and short-term investments Accounts receivable, net of allowance for doubtful accounts of $788 and $411 Inventories Other current assets Total current assets Property and equipment, net of accumulated depreciation of $43,197 and $35,330 Operating lease right-of-use assets Equity investments Goodwill Intangible assets, net Other long-term assets Total assets Liabilities and stockholders' equity Current liabilities: Accounts payable Current portion of long-term debt Accrued compensation Short-term income taxes Short-term unearned revenue Other current liabilities Total current liabilities BALANCE SHEETS Long-term debt Long-term income taxes Long-term unearned revenue Deferred income taxes Operating lease liabilities Other long-term liabilities Total liabilities Commitments and contingencies Stockholders' equity: Common stock and paid-in capital - shares authorized 24,000; outstanding 7,571 and 7,643 Retained earnings Accumulated other comprehensive income (loss) Total stockholders' equity Total liabilities and stockholders' equity 2020 $ 13,576 $ 11,356 122,951 122,463 136,527 32,011 1,895 11,482 181,915 44,151 8,753 2,965 $ 12,530 $ 3,749 7,874 2,130 36,000 10,027 2019 43,351 7,038 13,138 $ 301,311 $286,556 72,310 59,578 29,432 3,180 204 7,671 10,632 183,007 133,819 29,524 2,063 10,146 175,552 36,477 7,379 2,649 42,026 7,750 14,723 9,382 5,516 6,830 5,665 32,676 9,351 69,420 66,662 29,612 4,530 233 6,188 7,581 184,226 80,552 34,566 3,186 118,304 102,330 $ 301,311 $286,556 78,520 24,150 (340) Using the balance sheet of Microsoft provided on the next page, answer the following questions. Please note that Microsoft fiscal year ends on June 30. 1. As of June 30, 2020, how much does Microsoft expect to collect from its customers in the future because of sales that were made prior to July 1, 2020? 2. Assume that Microsoft had written off $202 (million) of its accounts receivable as permanently uncollectible during the year ended June 30, 2020. How much bad debt expense did Microsoft record during fiscal year 2020? (In millions) June 30, Assets Current assets: Cash and cash equivalents Short-term investments Total cash, cash equivalents, and short-term investments Accounts receivable, net of allowance for doubtful accounts of $788 and $411 Inventories Other current assets Total current assets Property and equipment, net of accumulated depreciation of $43,197 and $35,330 Operating lease right-of-use assets Equity investments Goodwill Intangible assets, net Other long-term assets Total assets Liabilities and stockholders' equity Current liabilities: Accounts payable Current portion of long-term debt Accrued compensation Short-term income taxes Short-term unearned revenue Other current liabilities Total current liabilities BALANCE SHEETS Long-term debt Long-term income taxes Long-term unearned revenue Deferred income taxes Operating lease liabilities Other long-term liabilities Total liabilities Commitments and contingencies Stockholders' equity: Common stock and paid-in capital - shares authorized 24,000; outstanding 7,571 and 7,643 Retained earnings Accumulated other comprehensive income (loss) Total stockholders' equity Total liabilities and stockholders' equity 2020 $ 13,576 $ 11,356 122,951 122,463 136,527 32,011 1,895 11,482 181,915 44,151 8,753 2,965 $ 12,530 $ 3,749 7,874 2,130 36,000 10,027 2019 43,351 7,038 13,138 $ 301,311 $286,556 72,310 59,578 29,432 3,180 204 7,671 10,632 183,007 133,819 29,524 2,063 10,146 175,552 36,477 7,379 2,649 42,026 7,750 14,723 9,382 5,516 6,830 5,665 32,676 9,351 69,420 66,662 29,612 4,530 233 6,188 7,581 184,226 80,552 34,566 3,186 118,304 102,330 $ 301,311 $286,556 78,520 24,150 (340)
Expert Answer:
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
Students also viewed these finance questions
-
The Town of Quincys fiscal year ends on June 30. The following data relate to the property tax levy for the fiscal year ended June 30, 2012. Prepare journal entries for each of the dates as...
-
The following is the balance sheet of Ingram Industries: Required Indicate your criticisms of the balance sheet and briefly explain the proper treatment of any itemcriticized. INGRAM INDUSTRIES...
-
The current assets and liabilities sections of the balance sheet of Cooper Company appear as follows. The following errors in the corporations accounting have been discovered: 1. The inventory...
-
The data below provides weekly sales for the past 12 weeks (weeks 21-32). Week Sales 21 4,000 22 3,655 23 3,958 24 3,983 25 4,538 26 4,120 27 4,692 28 4,421 29 4,859 30 5,030 31 5,540 32 5,670 Use a...
-
Why do U.S. corporations build manufacturing plants abroad when they could build them at home?
-
Who owns the benefits on a project, and who has strategic responsibility for realizing these benefits?
-
You are processing halibut livers that contain approximately \(25.2 \mathrm{wt} \%\) fish oil and \(74.8 \mathrm{wt} \%\) insoluble solids. The following data for leaching fish oil from halibut...
-
Charu Khanna received a Form 1099-B showing the following stock transactions and basis during 2016: None of the stock is qualified small business stock. The stock basis was reported to the IRS....
-
after years of traning sara has landed a contract playing professional league lacrosse. Eager to leverage her pro status by bringing in endorsements, she asks Jenny Maguire to be her personal...
-
Case 2. Presented below are the financial balances for the BonGiovi Company and the Terens Company as of December 31, 2017, immediately before BonGiovi acquired Terens. Also included are the fair...
-
What do "grandma's brownie recipe" and the long run aggregate supply curve (LRAS) have in common? a. The LRAS has a positive relation to the price level and it is determined by changes in aggregate...
-
2. Consider the following Industry Demand and Total Cost Curves for an industry characterized by monopoly: Total Cost 650,000 + 8Q Demand: P = 1,084,000 - 152Q a) What are the marginal cost, average...
-
These two compression utilities compress files and are similar in their functions and operations. The main difference is that compression than , but the latter is much more widely used offers...
-
Your firm has been appointed as company auditor for Bernard Berhad since year 2018. The audit fieldwork for financial year ended 31 December 2020 was completed on 31 March 2021. The audited financial...
-
Fluffy Towel Company manufactures two products, Mini A and Maxi B. Fluffy's overhead costs consist of setting up machines- $800,000; machining- $2,000,000; and inspecting- $600,000. Information on...
-
McCullough Hospital uses a job-order costing system to assign costs to its patients. Its direct materials include a variety of items such as pharmaceutical drugs, heart valves, artificial hips, and...
-
H , age 4 5 , and W , age 4 3 , are married with a 5 - month - old son. H and W always file jointly. H is the vice president of a local bank and is paid a salary of $ 9 5 , 0 0 0 . W is registered...
-
(8%) Problem 6: A student attaches a f= 3.5 kHz oscillator to one end of a metal rail of length L = 25 m. The student turns on the oscillator and uses a piezoelectric gauge at the other end to...
-
Only variable costs can be differential costs. Do you agree? Explain.
-
As the discount rate increases, the present value of a given future cash flow also increases. Do you agree? Explain.
-
High Tension Transformers, Inc., manufactures heavy-duty transformers for electrical switching stations. The company uses variable costing for internal management reports and absorption costing for...
-
Assume that you have 890 total equivalent units of materials and 863 total equivalent units of conversion costs. Also assume that your beginning inventory is composed of \($3,390\) of materials and...
-
Assume that you have completed and transferred 800 units out of your department during the period and that you have determined your average cost per equivalent unit of direct materials to be...
-
Assume that your ending inventory is composed of 90 equivalent units of materials and 63 equiva- lent units of conversions costs and that you have determined your average cost per equivalent unit of...
Study smarter with the SolutionInn App