In its 2018 10-K annual report, Microsoft Corporation reported the following revenues: a. Calculate the yearly revenue

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In its 2018 10-K annual report, Microsoft Corporation reported the following revenues:

a. Calculate the yearly revenue growth for this period. Based on this trend, what revenue would you forecast for fiscal year 2019? In December of 2016 (i.e., almost in the middle of fiscal year 2017, Microsoft completed its $27 .0 billion acquisition of LinkedIn Corporation. In the 10-K footnotes for 2018, Microsoft reports Following are the supplemental consolidated financial results of Microsoft Corporation on an unaudited pro forma basis, as if the acquisition had been consummated on July 1, 2015:

b. How does the acquisition of LinkedIn affect your interpretation of the growth trend in part a?

c. Using the footnote information, revise the growth calculations to separate the measures of "organic growth" from "purchased growth."

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Financial Accounting

ISBN: 9781618533111

6th Edition

Authors: Michelle L. Hanlon, Robert P. Magee, Glenn M. Pfeiffer, Thomas R. Dyckman

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