Question: Answer this using the Microsoft statements that i've attached in pictures Part 2: Financial Statement Analysis. 21 points total Refer to the Balance Sheet and
Answer this using the Microsoft statements that i've attached in pictures






Part 2: Financial Statement Analysis. 21 points total Refer to the Balance Sheet and Income Statement of ... Microsoft, Inc. For the year 2021 ... Compute (showing in each case how exactly you set up the ratio): 1) Return on Equity (ROE) 2) Gross Margin Percentage 3) Current Ratio 4) Debt/Equity Ratio 5) Asset Turnover 6) Profit Margin 7) Return on Assets (ROA) Record in your Solution BOX these numbers: The 7 ratios, for example .45 ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA INCOME STATEMENTS (In millions, except per share amounts) 2021 2020 2019 Year Ended June 30, Revenue: Product Service and other $ $ $ 71,074 97,014 68,041 74,974 66,069 59,774 Total revenue 168,088 143,015 125,843 Cost of revenue: Product Service and other 18,219 34,013 16,017 30,061 16,273 26,637 Total cost of revenue 46,078 42,910 Gross margin Research and development Sales and marketing General and administrative 52,232 115,856 20,716 20,117 5,107 96,937 19,269 19,598 5,111 82,933 16,876 18,213 4,885 Operating income Other income, net 69,916 1,186 52,959 77 42,959 729 Income before income taxes Provision for income taxes 71,102 9,831 53,036 8,755 43,688 4,448 Net income $ 61,271 $ 44,281 $ 39,240 $ $ 8.12 8.05 $ $ 5.82 5.76 $ $ 5.11 5.06 Earnings per share: Basic Diluted Weighted average shares outstanding: Basic Diluted 7,547 7,608 7,610 7,683 7,673 7,753 Refer to accompanying notes. 57 Microsoft Inc. INCOME STATEMENT BALANCE SHEETS 2021 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 $751 and $788 Inventories Other current assets 14,224 $ 116, 110 13,576 122,951 130,334 38,043 2,636 13,393 136,527 32,011 1,895 11,482 Total current assets Property and equipment, net of accumulated depreciation of $51,351 and $43,197 Operating lease right-of-use assets Equity investments Goodwill Intangible assets, net Other long-term assets 184,406 59,715 11,088 5,984 49,711 7,800 15,075 181,915 44,151 8,753 2,965 43,351 7,038 13,138 Total assets $ 333,779 $ 301,311 $ 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 15,163 $ 8,072 10,057 2,174 41,525 11,666 12,530 3,749 7,874 2,130 36,000 10,027 Total current liabilities Long-term debt Long-term income taxes Long-term unearned revenue Deferred income taxes Operating lease liabilities Other long-term liabilities Total liabilities 88,657 50,074 27,190 2,616 198 9,629 13,427 72,310 59,578 29,432 3,180 204 7,671 10,632 191,791 183,007 Commitments and contingencies Stockholders' equity: Common stock and paid-in capital - shares authorized 24,000; outstanding 7,519 and 7,571 Retained earnings Accumulated other comprehensive income Total stockholders' equity 83,111 57,055 1,822 80,552 34,566 3,186 118,304 141,988 333,779 $ Total liabilities and stockholders' equity 301,311 Refer to accompanying notes. 59 Microsoft Inc. BALANCE SHEET CASH FLOWS STATEMENTS 2021 2020 2019 $ 61,271 $ 44,281 $ 39,240 Depok-based 11,686 6,118 (1,249) (150) 12,796 5,289 (219) 11 11,682 4.652 (792) (6,463) (6,481) (737) (932) (3,459) (2,577) 168 (2,330) 2,798 (1,037 2,212 3,018 (In millions) Year Ended June 30, Operations Net income Adjustments to reconcile net income to net cash from operations: Depreciation, amortization, and other Stock- Net recod d compensation expense Deterea inized gains on investments and derivatives income taxes Changes in operating assets and liabilities: ni Accounts receivable Inventories Other curra Other current assets Otherland Other long-term assets Accounts payable Unearned revenue Income taxes Other current liabilities Other long-term liabilities Net cash from operations Financing Cash premium on debt exchange Repayments of debt Common stock issued Common stock repurchased Common stock cash dividends paid Other, net Net cash used in financing Investing Additions to property and equipment Acquisition of companies, net of cash acquired, and purchases of intangible and other assets Purchases of investments Maturities of investments Sales of investments Other, net (2,812) 597 (1,718) (1,834) 232 4,462 2,929 1,419 591 4,633 (2,309) 4,149 1,402 2012 (3,631) 1,346 1,348 76,740 60,675 52,185 (1,754) (3,750) 1,693 (27,385) (16,521) (769) (3,417) (5,518) 1,343 (22,968) (15,137) (334) 0 (4,000) 1,142 (19,543) (13,811) (675) (48,486) (46,031) (36,887) (20,622) (8,909) (62,924) 51,792 14,008 (922) (27,577) (29) (15,441) (2,521) (77,190) 66,449 17,721 (1,241) (12,223) (201) (13,925) (2,388) (57,697) 20,043 38,194 0 Net cash used in investing (15,773) (115) Effect of foreign exchange rates on cash and cash equivalents Net change in cash and cash equivalents Cash and cash equivalents, beginning of period Cash and cash equivalents, end of period 648 13,576 2,220 11,356 (590) 11,946 $ 14,224 $ 13,576 $ 11,356 Refer to accompanying notes. 60 Microsoft Inc. CASHFLOW STATEMENT DOCUMENT 3.0 Present Value Tables TABLE 2 Present Value of $1 $1 PV = (1 + i)" n/i 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 12.0% 20.0% 10.99010 0.98522 0.98039 0.97561 0.97087 0.96618 0.96154 0.95694 0.95238 0.94787 0.94340 0.93458 2 0.98030 0.97066 0.96117 0.95181 0.94260 0.93351 0.92456 0.91573 0.90703 0.89845 0.89000 0.87344 3 0.97059 0.95632 0.94232 0.92860 0.91514 0.90194 0.88900 0.87630 0.86384 0.85161 0.83962 0.81630 4 0.96098 0.94218 0.92385 0.90595 0.88849 0.87144 0.85480 0.83856 0.82270 0.80722 0.79209 0.76290 5 0.95147 0.92826 0.90573 0.88385 0.86261 0.84197 0.82193 0.80245 0.78353 0.76513 0.74726 0.71299 0.92593 0.91743 0.90909 0.85734 0.84168 0.82645 0.79383 0.77218 0.75131 0.73503 0.70843 0.68301 0.68058 0.64993 0.62092 0.90090 0.89286 0.81162 0.79719 0.73119 0.71178 0.65873 0.63552 0.59345 0.56743 0.83333 0.69444 0.57870 0.48225 0.40188 6 0.94205 0.91454 0.88797 0.86230 0.83748 0.81350 0.79031 0.76790 0.74622 0.72525 0.70496 0.66634 7 0.93272 0.90103 0.87056 0.84127 0.81309 0.78599 0.75992 0.73483 0.71068 0.68744 0.66506 0.62275 8 0.92348 0.88771 0.85349 0.82075 0.78941 0.75941 0.73069 0.70319 0.67684 0.65160 0.62741 0.58201 9 0.91434 0.87459 0.83676 0.80073 0.76642 0.73373 0.70259 0.67290 0.64461 0.61763 0.59190 0.54393 10 0.90529 0.86167 0.82035 0.78120 0.74409 0.70892 0.67556 0.64393 0.61391 0.58543 0.55839 0.50835 0.63017 0.59627 0.56447 0.58349 0.54703 0.51316 0.54027 0.50187 0.46651 0.50025 0.46043 0.42410 0.46319 0.42241 0.38554 0.53464 0.50663 0.48166 0.45235 0.43393 0.40388 0.39092 0.36061 0.35218 0.32197 0.33490 0.27908 0.23257 0.19381 0.16151 0.42888 11 0.89632 0.84893 0.80426 0.76214 0.72242 0.68495 0.64958 0.61620 0.58468 0.55491 0.52679 0.47509 12 0.88745 0.83639 0.78849 0.74356 0.70138 0.66178 0.62460 0.58966 0.55684 0.52598 0.49697 0.44401 13 0.87866 0.82403 0.77303 0.72542 0.68095 0.63940 0.60057 0.56427 0.53032 0.49856 0.46884 0.41496 14 0.86996 0.81185 0.75788 0.70773 0.66112 0.61778 0.57748 0.53997 0.50507 0.47257 0.44230 0.38782 15 0.86135 0.79985 0.74301 0.69047 0.64186 0.59689 0.55526 0.51672 0.48102 0.44793 0.41727 0.36245 0.39711 0.36770 0.34046 0.31524 0.38753 0.35049 0.35553 0.31863 0.32618 0.28966 0.29925 0.26333 0.27454 0.23939 0.31728 0.28748 0.28584 0.25668 0.25751 0.22917 0.23199 0.20462 0.20900 0.18270 0.13459 0.11216 0.09346 0.07789 0.06491 16 0.85282 0.78803 0.72845 0.67362 0.62317 0.57671 0.53391 0.49447 0.45811 0.42458 0.39365 0.33873 17 0.84438 0.77639 0.71416 0.65720 0.60502 0.55720 0.51337 0.47318 0.43630 0.40245 0.37136 0.31657 18 0.83602 0.76491 0.70016 0.64117 0.58739 0.53836 0.49363 0.45280 0.41552 0.38147 0.35034 0.29586 19 0.82774 0.75361 0.68643 0.62553 0.57029 0.52016 0.47464 0.43330 0.39573 0.36158 0.33051 0.27651 20 0.81954 0.74247 0.67297 0.61027 0.55368 0.50257 0.45639 0.41464 0.37689 0.34273 0.31180 0.25842 0.291890.25187 0.21763 0.27027 0.23107 0.19784 0.25025 0.21199 0.17986 0.23171 0.19449 0.16351 0.21455 0.17843 0.14864 0.18829 0.16312 0.16963 0.14564 0.15282 0.13004 0.13768 0.11611 0.12403 0.10367 0.05409 0.04507 0.03756 0.03130 0.02608 21 0.81143 0.73150 0.65978 0.59539 0.53755 0.48557 0.43883 0.39679 0.35894 0.32486 0.29416 0.24151 24 0.78757 0.69954 0.62172 0.55288 0.49193 0.43796 0.39012 0.34770 0.31007 0.27666 0.24698 0.19715 25 0.77977 0.68921 0.60953 0.53939 0.47761 0.42315 0.37512 0.33273 0.29530 0.26223 0.23300 0.18425 28 0.75684 0.65910 0.57437 0.50088 0.43708 0.38165 0.33348 0.29157 0.25509 0.22332 0.19563 0.15040 29 0.74934 0.64936 0.56311 0.48866 0.42435 0.36875 0.32065 0.27902 0.24295 0.21168 0.18456 0.14056 0.19866 0.16370 0.13513 0.15770 0.12640 0.10153 0.14602 0.11597 0.09230 0.11591 0.08955 0.06934 0.10733 0.08215 0.06304 0.11174 0.09256 0.08170 0.06588 0.07361 0.05882 0.05382 0.04187 0.04849 0.03738 0.02174 0.01258 0.01048 0.00607 0.00506 0.00421 30 0.74192 0.63976 0.55207 0.47674 0.41199 0.35628 0.30832 0.26700 0.23138 0.20064 0.17411 0.13137 31 0.73458 0.63031 0.54125 0.46511 0.39999 0.34423 0.29646 0.25550 0.22036 0.19018 0.16425 0.12277 40 0.67165 0.55126 0.45289 0.37243 0.30656 0.25257 0.20829 0.17193 0.14205 0.11746 0.09722 0.06678 0.09938 0.07537 0.05731 0.09202 0.06915 0.05210 0.04603 0.03184 0.02209 0.04368 0.03338 0.03935 0.02980 0.01538 0.01075 0.00351 0.00068 TABLE4 Present Value of an Ordinary Annuity of $1 1 1 - (1 + i)" PVA = i n/i 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 12.0% 20.0% 1 2 3 0.99010 0.98522 0.98039 0.97561 0.97087 0.96618 0.96154 0.95694 1.97040 1.95588 1.94156 1.92742 1.91347 1.89969 1.88609 1.87267 2.94099 2.91220 2.88388 2.85602 2.82861 2.80164 2.77509 2.74896 3.90197 3.85438 3.80773 3.76197 3.71710 3.67308 3.62990 3.58753 4.85343 4.78264 4.71346 4.64583 4.57971 4.51505 4.45182 4.38998 0.95238 0.94787 0.94340 1.85941 1.84632 1.83339 2.72325 2.69793 2.67301 3.54595 3.50515 3.46511 4.32948 4.27028 4.21236 0.93458 0.92593 0.91743 0.90909 0.90090 0.89286 0.83333 1.80802 1.78326 1.75911 1.73554 1.71252 1.69005 1.52778 2.62432 2.57710 2.53129 2.48685 2.44371 2.40183 2.10648 3.38721 3.31213 3.23972 3.16987 3.10245 3.03735 2.58873 4.10020 3.99271 3.88965 3.79079 3.69590 3.60478 2.99061 4 5 6 5.79548 5.69719 5.60143 5.50813 5.41719 5.32855 5.24214 5.15787 5.07569 4.99553 4.91732 7 6.72819 6.59821 6.47199 6.34939 6.23028 6.11454 6.00205 5.89270 5.78637 5.68297 5.58238 8 7.65168 7.48593 7.32548 7.17014 7.01969 6.87396 6.73274 6.59589 6.46321 6.33457 6.20979 98.56602 8.36052 8.16224 7.97087 7.78611 7.607697.43533 7.26879 7.10782 6.95220 6.80169 10 9.47130 9.22218 8.98259 8.75206 8.53020 8.31661 8.11090 7.91272 7.72173 7.53763 7.36009 4.76654 4.62288 5.38929 5.20637 5.97130 5.74664 6.51523 6.24689 7.02358 6.71008 4.48592 4.35526 4.23054 4.11141 3.32551 5.03295 4.86842 4.71220 4.56376 3.60459 5.53482 5.33493 5.14612 4.96764 3.83716 5.99525 5.75902 5.53705 5.32825 4.03097 6.41766 6.14457 5.88923 5.65022 4.19247 11 10.36763 10.07112 9.78685 9.51421 9.252629.00155 8.76048 8.52892 8.30641 8.09254 7.88687 12 11.25508 10.90751 10.57534 10.25776 9.95400 9.66333 9.38507 9.11858 8.86325 8.61852 8.38384 13 12.13374 11.73153 11.34837 10.98319 10.63496 10.30274 9.98565 9.68285 9.39357 9.11708 8.85268 14 13.00370 12.54338 12.10625 11.69091 11.29607 10.92052 10.56312 10.22283 9.89864 9.58965 9.29498 15 13.86505 13.34323 12.84926 12.38138 11.93794 11.51741 11.11839 10.73955 10.37966 10.03758 9.71225 7.49867 7.13896 7.94269 7.53608 8.35765 7.90378 8.74547 8.24424 9.10791 8.55948 6.80519 6.49506 6.20652 5.93770 4.32706 7.16073 6.81369 6.49236 6.19437 4.43922 7.48690 7.10336 6.74987 6.42355 4.53268 7.78615 7.36669 6.98187 6.62817 4.61057 8.06069 7.60608 7.19087 6.81086 4.67547 16 14.71787 14.13126 13.57771 13.05500 12.56110 12.09412 11.65230 11.23402 10.83777 10.46216 10.10590 9.44665 8.85137 8.31256 7.82371 7.37916 6.97399 4.72956 17 15.56225 14.90765 14.29187 13.71220 13.16612 12.65132 12.16567 11.70719 11.27407 10.86461 10.47726 9.76322 9.12164 8.54363 8.02155 7.54879 7.11963 4.77463 18 16.39827 15.67256 14.99203 14.35336 13.75351 13.18968 12.65930 12.15999 11.68959 11.24607 10.82760 10.05909 9.37189 8.75563 8.20141 7.70162 7.24967 4.81219 19 17.22601 16.42617 15.67846 14.97889 14.32380 13.70984 13.13394 12.59329 12.08532 11.60765 11.15812 10.33560 9.60360 8.95011 8.36492 7.83929 7.36578 4.84350 20 18.04555 17.16864 16.35143 15.58916 14.87747 14.21240 13.59033 13.00794 12.46221 11.95038 11.46992 10.59401 9.81815 9.12855 8.51356 7.96333 7.46944 4.86958 21 18.85698 17.90014 17.01121 16.18455 15.41502 14.69797 14.02916 13.40472 12.82115 12.27524 11.76408 10.83553 10.01680 9.29224 8.64869 8.07507 7.56200 4.89132 25 22.02316 20.71961 19.52346 18.42438 17.41315 16.48151 15.62208 14.82821 14.09394 13.41393 12.78336 11.65358 10.67478 9.82258 9.07704 8.42174 7.84314 4.94759 30 25.80771 24.01584 22.39646 20.93029 19.60044 18.39205 17.29203 16.28889 15.37245 14.53375 13.76483 12.40904 11.25778 10.27365 9.42691 8.69379 8.05518 4.97894 40 32.83469 29.91585 27.35548 25.10278 23.11477 21.35507 19.79277 18.40158 17.15909 16.04612 15.04630 13.33171 11.92461 10.75736 9.77905 8.95105 8.24378 4.99660
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
