Q2 Study the Balance Sheet for the five years presented. Q3 Q4 b. C. hogam coblonover...

 

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Q2 Study the Balance Sheet for the five years presented. Q3 Q4 b. C. hogam coblonover During FYE 6/30/2005 cash equivalents (increased / decreased) significantly as a result of (a net loss / repurchasing common stock/paying dividends). a. During FYE 6/30/2006 cash equivalents (increased / decreased) primarily as a result of (a net loss / repurchasing common stock /paying dividends). From 6/30/2004 to 6/30/2007 total liabilities (increased / decreased) whereas stockholders' equity (increased / decreased), resulting in a(n) (increasing / decreasing) debt ratio and (increasing / decreasing) financial leverage. Study the Income Statement for the five years presented. From 6/30/2003 to 6/30/2007 revenues (increased / decreased), net income (increased / decreased), and EPS (increased / decreased). During FYE (6-30-2004/6-30-2005 / 6-30-2006) Microsoft paid a huge special one-time $3 per share dividend totaling $ billion. To pay this dividend, did Microsoft have enough cash? (Yes/No) Enough retained earnings? (Yes/No) At this time Bill Gates owned 1.12 billion shares of Microsoft stock so his dividend was (1.12 2.24/ 3.36) billion dollars. What did Bill Gates do with his dividend? (Buy a super-duper sports car / Donate it to charity / Give it to his children) MICROSOFT Beginning CS Issue CS Ending CS Beginning RE + Net income - Dividends Other Ending RE Beginning TS Repurchase CS Ending TS ENDING SE MICROSOFT Cash/Assets Cash equivalents. Assets Liabilities Stockholders' equity MICROSOFT Fiscal year ended Revenue Net income. EPS Div rate per share Avg C/SO/S MICROSOFT ROS x Asset Turnover ROA x Financial Leverage = ROE Debt Ratio 6/30/2007 $ 59,005 $ 60,413 1.552 (1.408) 60,557 59,005 11.047 14,065 (3,837) 425 21,700 (29,948) (21,212) (51.160) 31,097 $ STATEMENT OF STOCKHOLDERS' EQUITY Adapted from the Form 10-K 5 in millions 6/30/2006 6/30/2005 $ 56,396 4,017 $ $ $ $ 6/30/2007 37.06% 23,411 $ 63,171 $ 32,074 $ $ 31,097 $ $ $ $ 9,742 $ 6/30/2007 27.51% 0.8093 22.26% 2.03 45.23% 50.77% 2,239 12,599 (3,594) (197) 11,047 (14,537) (8,217) (15,411) (6,320) (29.948) (14,537) 40.104 $ 48,115 BALANCE SHEET Selected Amounts in Millions 6/30/2006 6/30/2005 INCOME STATEMENT Selected Amounts in Millions, Except per Share Data 6/30/2007 6/30/2006 51,122 $ 14,065 $ 1.44 $ 0.40 $ 60,413 26,646 12,254 (36,968) 307 2,239 1.21 0.35 10,438 $ 44,282 12,599 $ $ $ 6/30/2004 6/30/2003 49.08% 53.31% 64.21% 61.64% 60,592 S 49,048 79,571 34,161 S 37,751 $ 69,597 $ 70,815 $ 94,368 $ 29,493 $ 22,700 $ 19,543 40,104 48,115 $ $ 74,825 $ 14,659 64.912 6/30/2006 28.45% 0.6363 18.10% 1.74 31.42% 42.38% 39,788 12,254 1.13 3.40 6/30/2005 6/30/2004 DUPONT ANALYSIS of ROE 6/30/2005 30.80% 0.5619 17.30% 147 6/30/2004 $ 49,234 7.162 56.396 20,928 8,168 (1,729) (721) 10,839 26,646 (5,250) (2,967) (8.217) $ 74,825 $ 25.47% 32.06% S $ $ 6/30/2003 $ 41,845 7,389 49.234 12,997 7,531 $ 10,803 (857) 1.257 20.928 $ 6/30/2004 22.17% 0.3903 8.66% 1.26 10.92% 20.71% (5,250) (5.250) 64,912 S 36,835 8,168 $ $ 0.76 0.16 $ 6/30/2003 32,187 7,531 0.70 0.08 10,723 6/30/2003 23.40% 0.4045 9.46% 123 11.60% 18.42% Q2 Study the Balance Sheet for the five years presented. Q3 Q4 b. C. hogam coblonover During FYE 6/30/2005 cash equivalents (increased / decreased) significantly as a result of (a net loss / repurchasing common stock/paying dividends). a. During FYE 6/30/2006 cash equivalents (increased / decreased) primarily as a result of (a net loss / repurchasing common stock /paying dividends). From 6/30/2004 to 6/30/2007 total liabilities (increased / decreased) whereas stockholders' equity (increased / decreased), resulting in a(n) (increasing / decreasing) debt ratio and (increasing / decreasing) financial leverage. Study the Income Statement for the five years presented. From 6/30/2003 to 6/30/2007 revenues (increased / decreased), net income (increased / decreased), and EPS (increased / decreased). During FYE (6-30-2004/6-30-2005 / 6-30-2006) Microsoft paid a huge special one-time $3 per share dividend totaling $ billion. To pay this dividend, did Microsoft have enough cash? (Yes/No) Enough retained earnings? (Yes/No) At this time Bill Gates owned 1.12 billion shares of Microsoft stock so his dividend was (1.12 2.24/ 3.36) billion dollars. What did Bill Gates do with his dividend? (Buy a super-duper sports car / Donate it to charity / Give it to his children) MICROSOFT Beginning CS Issue CS Ending CS Beginning RE + Net income - Dividends Other Ending RE Beginning TS Repurchase CS Ending TS ENDING SE MICROSOFT Cash/Assets Cash equivalents. Assets Liabilities Stockholders' equity MICROSOFT Fiscal year ended Revenue Net income. EPS Div rate per share Avg C/SO/S MICROSOFT ROS x Asset Turnover ROA x Financial Leverage = ROE Debt Ratio 6/30/2007 $ 59,005 $ 60,413 1.552 (1.408) 60,557 59,005 11.047 14,065 (3,837) 425 21,700 (29,948) (21,212) (51.160) 31,097 $ STATEMENT OF STOCKHOLDERS' EQUITY Adapted from the Form 10-K 5 in millions 6/30/2006 6/30/2005 $ 56,396 4,017 $ $ $ $ 6/30/2007 37.06% 23,411 $ 63,171 $ 32,074 $ $ 31,097 $ $ $ $ 9,742 $ 6/30/2007 27.51% 0.8093 22.26% 2.03 45.23% 50.77% 2,239 12,599 (3,594) (197) 11,047 (14,537) (8,217) (15,411) (6,320) (29.948) (14,537) 40.104 $ 48,115 BALANCE SHEET Selected Amounts in Millions 6/30/2006 6/30/2005 INCOME STATEMENT Selected Amounts in Millions, Except per Share Data 6/30/2007 6/30/2006 51,122 $ 14,065 $ 1.44 $ 0.40 $ 60,413 26,646 12,254 (36,968) 307 2,239 1.21 0.35 10,438 $ 44,282 12,599 $ $ $ 6/30/2004 6/30/2003 49.08% 53.31% 64.21% 61.64% 60,592 S 49,048 79,571 34,161 S 37,751 $ 69,597 $ 70,815 $ 94,368 $ 29,493 $ 22,700 $ 19,543 40,104 48,115 $ $ 74,825 $ 14,659 64.912 6/30/2006 28.45% 0.6363 18.10% 1.74 31.42% 42.38% 39,788 12,254 1.13 3.40 6/30/2005 6/30/2004 DUPONT ANALYSIS of ROE 6/30/2005 30.80% 0.5619 17.30% 147 6/30/2004 $ 49,234 7.162 56.396 20,928 8,168 (1,729) (721) 10,839 26,646 (5,250) (2,967) (8.217) $ 74,825 $ 25.47% 32.06% S $ $ 6/30/2003 $ 41,845 7,389 49.234 12,997 7,531 $ 10,803 (857) 1.257 20.928 $ 6/30/2004 22.17% 0.3903 8.66% 1.26 10.92% 20.71% (5,250) (5.250) 64,912 S 36,835 8,168 $ $ 0.76 0.16 $ 6/30/2003 32,187 7,531 0.70 0.08 10,723 6/30/2003 23.40% 0.4045 9.46% 123 11.60% 18.42%

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A During FYE 6302005 cash equivalents decreased significantly as a result of paying dividends as div... View the full answer