Go to Microsoft Corporation’s Web site at www.microsoft.com and click on the “Investor Relations” area under “About Microsoft.” Select the menu item “Stock Info and Analysis.” Select the “What-if?” tool. With this tool, use horizontal and vertical information to create a full-year projection of the Microsoft income statement. Make the following assumptions:

Revenue growth ............ 12%

Cost of goods sold as a percent of revenue . 15%

Research and development growth .... 10%

Sales and marketing as a percent of sales .. 18%

General and administrative as a percent of sales 6%

Tax rate ................ 32%

Diluted shares outstanding ........ 12,000