Recent stockholders' equity statements for Microsoft are presented below.

Required

A. What was the amount of common stock and paid-in capital at June 30, 2000, 2001, and 2002?

B. Does Microsoft pay dividends on common stock?

C. How can you explain the increase in Common stock and paid-in capital over the three-year period?

D. Without consulting Microsoft's Statement of Income, can we determine net income reported in 2000, 2001, and 2002? Why or why not?

E. Microsoft's Stockholders' Equity Statements report Common stock repurchased. Why do you think a company would repurchase its own shares? If the shares are later reissued at a higher price, do you think Microsoft should report a gain on sharesreissued?

Microsoft Corporation Stockholders' Equity Statements Year Ended June 30 Convertible preferred stock Balance, beginning of year Conversion of preferred to common stock $ 980 Common stock and paid-in capital 31,647 13,614 2 Cumulative effect of accounting change Translation adjustments and other (5,680) Balance, end of year $4136$47.289 $5213