The company that I researched was Microsoft, I'm utilizing their income statement for this assignment as well. A company's income statement shows their revenues, expenses, and profitability over a period of time (Bdc, n.d.). It shows whether a company is making profit or loss for a givenperiod (Krishnan, n.d.). Income statements help executives, creditors, and investors make informed decisions by providing them with financial information regarding business' performance.

The first task was to identify the revenue on the income statement. I observed that for the fiscal year of 2023 Microsoft's revenue consisted of product (value of $64.6 billion), as well as service and other (value of $147.2 billion), which equaled $211.9 billion in total revenue when combined. The variable cost consisted of the cost of revenue. The cost of revenue included a product value of $17.8 billion along with a service and other value of $48 billion. The fixed cost consisted of three categories, with one of the categories being research and development with a value of $27.1 billion. The other two categories were sales/marketing with a value of $22.7 billion, along with general and administrative, which was a value of $7.5 billion. As I observed the income statement, I noticed that there were no additional expenses that the company faced.

While examining the income statement, I analyzed some of the values given that help determine the financial position of the corporation. I considered the value of the total revenue, which is all the money that the business made. The income statement showed an increase in the total revenue throughout the last three years. This showed that the corporation had increased funds to put toward the cost of providing services, the cost of creating different products, and the expenses required to run a successful corporation. An increase in revenue also helps to increase the bottom line. The bottom line that I'm referring to is better known as the net income, which I examined next.

The net income is the profit that Microsoft earned after all expenses were taken into account. Microsoft's net income for 2023 was $72.3 billion. Since this is not a negative number, this shows that the company did not spend more than it earned and isn't considered to be in the red. Microsoft's positive net income means that the corporation's expenses did not exceed revenue and it has the necessary resources to keep the business functioning. When a company's net income is positive it is referred to as being in the black. Based on my observations of Microsoft's income statement and the results that the corporation produced in 2023, I would consider the corporation to be successful. The income statement does not depict a negative net income, which would indicate financial distress (due to revenue outweighing expenses). The business is successful because it is producing enough revenue to finance the corporation's operations without Microsoft experiencing the financial struggle of a net loss. Microsoft's income statement 2023 showed that it was in good standing.

what did you take from what I wrote above regarding microsoft's income statement? do you agree that they are successful based on this info?