1. Microsoft's long-lived assets for the last three years: a. Long-lived Assets Property and Equipment Operating...

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1. Microsoft's long-lived assets for the last three years: a. Long-lived Assets Property and Equipment Operating Lease right-of-use Assets Equity Investments Goodwill Intangible Assets Other Long-term Assets Total Assets (Current + Noncurrent) (In millions) 2023 b. 2023 % 2022 b. 2022 % 95,641 23.22% 74,398 20.39% 2021 67,214 b. 2021 % 19.75% 14,346 3.48% 13,148 3.60% 12,354 3.63% 9,879 2.40% 6,891 1.89% 6,994 2.05% 67,886 16.48% 67,524 18.51% 50,921 14.96% 9,366 2.27% 30,601 7.43% 11,298 21,897 3.10% 6.00% 7,462 21,256 2.19% 6.24% 411,976 364,840 340,389 c. The results of trend analysis suggest that Microsoft is allocating their investments more toward property and equipment, equity investments, and other long-term assets. Additional trend analysis note: Microsoft scaled back on acquisition/merger initiative in 2023 due to percentage decrease in Goodwill from previous year 2022. Sum of b. 2023 % Sum of b. 2022 % Sum of b. 2021 % 0.25 0.2 0.15 0.1 0.05 0 Equity Investments Goodwill Intangible Assets Operating Lease right- Other Long-term Assets of-use Assets Property and Equipment Long-lived Assets Values Sum of b. 2023 % Sum of b. 2022 % Sum of b. 2021 % 2. Go to Balance Sheet and Notes for the most recent year: a. Microsoft disclose accumulated depreciations as their method for cost allocation i. The amount of depreciation expense during three latest fiscal years: ii. Amortization expense during the latest three fiscal years: (In billions) 2023 2022 2021 $11.0 $12.6 $9.3 (In billions) 2023 $2.5 2022 2021 $2.0 $1.6 iii. Information is found on Microsoft's Annual 10K Part II under Note 7-Property and Equipment and Note 10-Intangible Assets b. A total of 41.64% of property, plant, and equipment has been used as of the June 30th of the current year (2023). Item NOTE 7 - PROPERTY AND EQUIPMENT The components of property and equipment were as follows: (In millions) June 30, Land Buildings and improvements Leasehold improvements Computer equipment and software Furniture and equipment Total, at cost Accumulated depreciation Total, net 2023 2022 $ 5,683 $ 4,734 68,465 55,014 8,537 7,819 74,961 60,631 6,246 5,860 163,892 (68,251) 134,058 (59,660) Total, at cost Accumulated depreciation $163,892 ($68,251) $ 95,641 $ 74,398 Used % 41.64% 4. Go to the Statement of Cash Flows. For the most recent year: a. What were capital expenditures? b. What amount did the company report for the disposal (sale) of long-lived assets? c. In what section of the statement of cash flows-operating, investing, or financing-did you find the information for a and b? d. Was depreciation and/or amortization expense added back or subtracted from net income in the operating section of the statement of cash flows? Why are they added back or subtracted on the statement of cash flows? 1. Microsoft's long-lived assets for the last three years: a. Long-lived Assets Property and Equipment Operating Lease right-of-use Assets Equity Investments Goodwill Intangible Assets Other Long-term Assets Total Assets (Current + Noncurrent) (In millions) 2023 b. 2023 % 2022 b. 2022 % 95,641 23.22% 74,398 20.39% 2021 67,214 b. 2021 % 19.75% 14,346 3.48% 13,148 3.60% 12,354 3.63% 9,879 2.40% 6,891 1.89% 6,994 2.05% 67,886 16.48% 67,524 18.51% 50,921 14.96% 9,366 2.27% 30,601 7.43% 11,298 21,897 3.10% 6.00% 7,462 21,256 2.19% 6.24% 411,976 364,840 340,389 c. The results of trend analysis suggest that Microsoft is allocating their investments more toward property and equipment, equity investments, and other long-term assets. Additional trend analysis note: Microsoft scaled back on acquisition/merger initiative in 2023 due to percentage decrease in Goodwill from previous year 2022. Sum of b. 2023 % Sum of b. 2022 % Sum of b. 2021 % 0.25 0.2 0.15 0.1 0.05 0 Equity Investments Goodwill Intangible Assets Operating Lease right- Other Long-term Assets of-use Assets Property and Equipment Long-lived Assets Values Sum of b. 2023 % Sum of b. 2022 % Sum of b. 2021 % 2. Go to Balance Sheet and Notes for the most recent year: a. Microsoft disclose accumulated depreciations as their method for cost allocation i. The amount of depreciation expense during three latest fiscal years: ii. Amortization expense during the latest three fiscal years: (In billions) 2023 2022 2021 $11.0 $12.6 $9.3 (In billions) 2023 $2.5 2022 2021 $2.0 $1.6 iii. Information is found on Microsoft's Annual 10K Part II under Note 7-Property and Equipment and Note 10-Intangible Assets b. A total of 41.64% of property, plant, and equipment has been used as of the June 30th of the current year (2023). Item NOTE 7 - PROPERTY AND EQUIPMENT The components of property and equipment were as follows: (In millions) June 30, Land Buildings and improvements Leasehold improvements Computer equipment and software Furniture and equipment Total, at cost Accumulated depreciation Total, net 2023 2022 $ 5,683 $ 4,734 68,465 55,014 8,537 7,819 74,961 60,631 6,246 5,860 163,892 (68,251) 134,058 (59,660) Total, at cost Accumulated depreciation $163,892 ($68,251) $ 95,641 $ 74,398 Used % 41.64% 4. Go to the Statement of Cash Flows. For the most recent year: a. What were capital expenditures? b. What amount did the company report for the disposal (sale) of long-lived assets? c. In what section of the statement of cash flows-operating, investing, or financing-did you find the information for a and b? d. Was depreciation and/or amortization expense added back or subtracted from net income in the operating section of the statement of cash flows? Why are they added back or subtracted on the statement of cash flows?