Financial InformationMicrosoftMicrosoftIncome StatementBalance She

Financial InformationMicrosoftMicrosoftIncome
StatementBalance SheetFor the Years ended 2018 through
2020For the Years ended 2018 through 2020(Amounts in
millions)(Amounts in millions)Fiscal Year:202020192018Fiscal
Year:202020192018Total Revenue143,015125,843110,360
Cash, Cash Equivalents and Short Term
Investments136,527133,819133,768Cost of
Revenue46,07842,91038,353
Inventories1,8952,0632,662Gross Profit96,93782,93372,007
Trade and Other Receivables, Current32,01129,52426,481
Selling, General and Administrative
Expenses24,70923,09822,223 Other Current
Assets11,48210,1466,751 Research and Development
Expenses19,26916,87614,726 Total Current
Assets181,915175,552169,662Operating
Income/Expenses43,97839,97436,949 Deferred
Costs/Assets, CurrentTotal Operating
Profit/Loss52,95942,95935,058 Total Non-Current
Assets119,396111,00489,186Non-Operating Income/Expenses,
Total777291,416 Net Property, Plant and
Equipment52,90443,85636,146Pretax
Income53,03643,68836,474 Net Intangible
Assets50,38949,77643,736Provision for Income
Tax8,7554,44819,903 Total Long Term
Investments2,9652,6491,862Net Income from Continuing
Operations44,28139,24016,571 Other Non-Current
Assets13,13814,7237,442Total Assets301,311286,556258,848
Financial Liabilities, Current3,7495,5163,998 Provisions,
Current7,8746,8306,103 Deferred Liabilities,
Current36,00032,67628,905 Other Current
Liabilities10,0279,3518,744 Total Current
Liabilities72,31069,42058,488 Long Term
Debt59,57866,66272,242 Capital Lease Obligations,
Non-Current7,6716,1885,568 Tax Liabilities, Non-

Current204233541 Deferred Income/Customer
Advances/Billings in Excess of Cost, Non-
Current3,1804,5303,815 Payables and Accrued Expenses,
Non-Current29,43229,61230,265 Other Non-Current
Liabilities10,6327,5815,211 Total Non-Current
Liabilities110,697114,806117,642Total
Liabilities183,007184,226176,130 Equity Attributable to
Parent Stockholders118,304102,33082,718 Paid in
Capital80,55278,52071,223 Retained
Earnings/Accumulated Deficit34,56624,15013,682
Reserves/Accumulated Comprehensive
Income/Losses3,186(340)(2,187)Total
Equity118,304102,33082,718Total Equity and
Liabiltiies301,311286,556258,848
3-Horizontal Analysis ISMicrosoftIncome StatementFor the
Years ended 2018 through 2020(Amounts in
millions)2019201820202019$ Change% Change20192018$
Change% Change2082018$ Change% ChangeTotal
Revenue143,015125,84317,17213.6%125,843110,36015,48314.0
%110,360110,360- 00.0%Cost of
Revenue46,07842,9103,1687.4%42,91038,3534,55711.9%38,35
338,353- 00.0%Gross
Profit96,93782,93314,00416.9%82,93372,00710,92615.2%72,00
772,007- 00.0% Selling, General and Administrative
Expenses24,70923,0981,6117.0%23,09822,2238753.9%22,2232
2,223- 00.0% Research and Development
Expenses19,26916,8762,39314.2%16,87614,7262,15014.6%14,7
2614,726- 00.0%Operating
Income/Expenses43,97839,9744,00410.0%39,97436,9493,0258.
2%36,94936,949- 00.0%Total Operating
Profit/Loss52,95942,95910,00023.3%42,95935,0587,90122.5%3
5,05835,058- 00.0%Non-Operating Income/Expenses,
Total77729(652)-89.4%7291,416(687)-48.5%1,4161,416-
00.0%Pretax
Income53,03643,6889,34821.4%43,68836,4747,21419.8%36,47
436,474- 00.0%Provision for Income

Tax8,7554,4484,30796.8%4,44819,903(15,455)-
77.7%19,90319,903- 00.0%Net Income from Continuing
Operations44,28139,2405,04112.8%39,24016,57122,669136.8%
16,57116,571- 00.0%
3- Horizontal Analysis BSMircosoftBalance SheetHorizontal
Analysis for the Years ended 2018through 2020(Amounts in
millions)20202019$ Change% Change20192018$ Change%
Change20182018$ Change% Change Cash, Cash
Equivalents and Short Term
Investments136,527133,8192,7082.0%133,819133,768510.0%13
3,768133,768- 00.0% Inventories1,8952,063(168)-
8.1%2,0632,662(599)-22.5%2,6622,662- 00.0% Trade and
Other Receivables,
Current32,01129,5242,4878.4%29,52426,4813,04311.5%26,481
26,481- 00.0% Other Current
Assets11,48210,1461,33613.2%10,1466,7513,39550.3%6,7516,7
51- 00.0% Total Current
Assets181,915175,5526,3633.6%175,552169,6625,8903.5%169,
662169,662- 00.0% Deferred Costs/Assets, Current Total
Non-Current
Assets119,396111,0048,3927.6%111,00489,18621,81824.5%89,
18689,186- 00.0% Net Property, Plant and
Equipment52,90443,8569,04820.6%43,85636,1467,71021.3%36,
14636,146- 00.0% Net Intangible
Assets50,38949,7766131.2%49,77643,7366,04013.8%43,73643,
736- 00.0% Total Long Term
Investments2,9652,64931611.9%2,6491,86278742.3%1,8621, 86
2- 00.0% Other Non-Current Assets13,13814,723(1,585)-
10.8%14,7237,4427,28197.8%7,4427,442- 00.0%Total
Assets301,311286,55614,7555.1%286,556258,84827,70810.7%2
58,848258,848- 00.0% Financial Liabilities,
Current3,7495,516(1,767)-
32.0%5,5163,9981,51838.0%3,9983,998- 00.0%
Provisions,
Current7,8746,8301,04415.3%6,8306,10372711.9%6,1036,103-
00.0% Deferred Liabilities,

Current36,00032,6763,32410.2%32,67628,9053,77113.0%28,90
528,905- 00.0% Other Current
Liabilities10,0279,3516767.2%9,3518,7446076.9%8,7448,744-
00.0% Total Current
Liabilities72,31069,4202,8904.2%69,42058,48810,93218.7%58,
48858,488- 00.0% Long Term
Debt59,57866,662(7,084)-10.6%66,66272,242(5,580)-
7.7%72,24272,242- 00.0% Capital Lease Obligations,
Non-
Current7,6716,1881,48324.0%6,1885,56862011.1%5,5685,568-
00.0% Tax Liabilities, Non-Current204233(29)-
12.4%233541(308)-56.9%541541- 00.0% Deferred
Income/Customer Advances/Billings in Excess of Cost, Non-
Current3,1804,530(1,350)-
29.8%4,5303,81571518.7%3,8153,815- 00.0% Payables and
Accrued Expenses, Non-Current29,43229,612(180)-
0.6%29,61230,265(653)-2.2%30,26530,265- 00.0% Other
Non-Current
Liabilities10,6327,5813,05140.2%7,5815,2112,37045.5%5,2115
,211- 00.0% Total Non-Current
Liabilities110,697114,806(4,109)-3.6%114,806117,642(2,836)-
2.4%117,642117,642- 00.0%Total
Liabilities183,007184,226(1,219)-
0.7%184,226176,1308,0964.6%176,130176,130- 00.0%
Equity Attributable to Parent
Stockholders118,304102,33015,97415.6%102,33082,71819,612
23.7%82,71882,718- 00.0% Paid in
Capital80,55278,5202,0322.6%78,52071,2237,29710.2%71,223
71,223- 00.0% Retained Earnings/Accumulated
Deficit34,56624,15010,41643.1%24,15013,68210,46876.5%13,6
8213,682- 00.0% Reserves/Accumulated Comprehensive
Income/Losses3,186(340)3,526-1037.1%(340)(2,187)1,847-
84.5%(2,187)(2,187)- 00.0%Total
Equity118,304102,33015,97415.6%102,33082,71819,61223.7%8
2,71882,718- 00.0%Total Equity and
Liabiltiies301,311286,55614,7555.1%286,556258,84827,70810.

7%258,848258,848- 00.0%
3 Vertical Analysis ISMicorsoftIncome StatementVertical
Analysis for the Years ended 2018 through 2020(Amounts in
millions)2020%2019%2018%Total
Revenue143,015100.0%110,360100.0%110,360100.0%Cost of
Revenue46,07832.2%38,35334.8%38,35334.8%Gross
Profit96,93767.8%72,00765.2%72,00765.2% Selling, General
and Administrative
Expenses24,70917.3%22,22320.1%22,22320.1% Research and
Development
Expenses19,26913.5%14,72613.3%14,72613.3%Operating
Income/Expenses43,97830.8%36,94933.5%36,94933.5%Total
Operating
Profit/Loss52,95937.0%35,05831.8%35,05831.8%Non-
Operating Income/Expenses,
Total770.1%1,4161.3%1,4161.3%Pretax
Income53,03637.1%36,47433.1%36,47433.1%Provision for
Income Tax8,7556.1%19,90318.0%19,90318.0%Net Income
from Continuing
Operations44,28131.0%16,57115.0%16,57115.0%
3 Vertical Analysis BSMicrosoft.Vertical Analysis for the Years
ended 2018 through 2020(Amounts in
millions)2020%2019%2018% Cash, Cash Equivalents and
Short Term
Investments136,52745.3%133,81946.7%133,76851.7%
Inventories1,8950.6%2,0630.7%2,6621.0% Trade and
Other Receivables,
Current32,01110.6%29,52410.3%26,48110.2% Other
Current Assets11,4823.8%10,1463.5%6,7512.6% Total
Current Assets181,91560.4%175,55261.3%169,66265.5%
Deferred Costs/Assets, Current Total Non-Current
Assets119,39639.6%111,00438.7%89,18634.5% Net
Property, Plant and
Equipment52,90417.6%43,85615.3%36,14614.0% Net
Intangible Assets50,38916.7%49,77617.4%43,73616.9%
Total Long Term Investments2,9651.0%2,6490.9%1,8620.7%

Other Non-Current
Assets13,1384.4%14,7235.1%7,4422.9%Total
Assets301,311100.0%286,556100.0%258,848100.0%
Financial Liabilities, Current3,7491.2%5,5161.9%3,9981.5%
Provisions, Current7,8742.6%6,8302.4%6,1032.4%
Deferred Liabilities,
Current36,00011.9%32,67611.4%28,90511.2% Other
Current Liabilities10,0273.3%9,3513.3%8,7443.4% Total
Current Liabilities72,31024.0%69,42024.2%58,48822.6%
Long Term Debt59,57819.8%66,66223.3%72,24227.9%
Capital Lease Obligations, Non-
Current7,6712.5%6,1882.2%5,5682.2% Tax Liabilities,
Non-Current2040.1%2330.1%5410.2% Deferred
Income/Customer Advances/Billings in Excess of Cost, Non-
Current3,1801.1%4,5301.6%3,8151.5% Payables and
Accrued Expenses, Non-
Current29,4329.8%29,61210.3%30,26511.7% Other Non-
Current Liabilities10,6323.5%7,5812.6%5,2112.0% Total
Non-Current
Liabilities110,69736.7%114,80640.1%117,64245.4%Total
Liabilities183,00760.7%184,22664.3%176,13068.0% Equity
Attributable to Parent
Stockholders118,30439.3%102,33035.7%82,71832.0% Paid
in Capital80,55226.7%78,52027.4%71,22327.5% Retained
Earnings/Accumulated
Deficit34,56611.5%24,1508.4%13,6825.3%
Income/Losses3,1861.1%(340)-0.1%(2,187)-0.8%Total
Equity118,30439.3%102,33035.7%82,71832.0%Total Equity
and Liabiltiies301,311100.0%286,556100.0%258,848100.0%
REFERENCESReferences: TABFINANCIAL
INFORMATIONU.S. Securities and Exchange Commission
(2019). 2019 Annual SEC Form 10-K Report, Costco Wholesale
Corporation. Retrieved from
https://www.sec.gov/Archives/edgar/data/909832/000090983219
000019/cost10k9119.htmThis is an example of your reference.

You will use the actual reference from your company. You will
create one for each different SEC Form 10K report you will cite
CIVL125 Physics and Statics
Humber College - Faculty of Applied Science and Technology
CIVL125 – Physics and Statics-Test 1
Cheating, by obtaining answers to questions through
unauthorized means (from another student, from
internet etc.) is an academic offence and is punishable by
academic penalty. An academic penalty begins
with the assignment of a grade of zero (0) in such situations and
can be extended up to and including
suspension from a program/ course and expulsion from the
College.
Student Name & Signature:
___________________________________________________
Student Number: _________________ Date: February 5,
2021 10:00am-1:25pm

Test Format:
Yourlastname_Yourfirstname_CIVL125Test1
o [email protected]
Good luck!
Organization/Neatness of the Assignment
Not a single pdf file -10%
File Name not as Required -5%
Messy work -10%

Missing Units -10%
Some Multiples and Conversions:
Giga=109
Mega=106
kilo=103
milli=10-3
micro=10-6
1ft=0.3048m
1in=25.4mm
1lb=4.4482N
1Pa=N/m2

A
Cosine Law:
A
Sine Law:
Question 1: Calculations, Dimensional Analysis and
Trigonometry.
Show all calculations step by step otherwise the mark will be
zero. Pick up your
personalized data from the table below.
(20%)

First Letter of
Your First
Name “a”
Second Letter
of Your First
Name “b”
First Letter of
Your Last
Name “c”
Second Letter
of Your Last
Name “d”
A-G 50 A-G 6 A-G 400 A-G
0.6
H-M 60 H-M 7 H-M 500 H-M 40
N-R 70 N-R 8 N-R 600 N-R
50
S-Z 80 S-Z 9 S-Z 700 S-Z
12
a) Evaluate the following to three significant digits and and
express the answer
in SI units (N,m,kg) using an appropriate prefix: (a MN)(b
km)/(c mg) (6%)

b) Convert d kips/ft to kN/m. Evaluate the answer to three
significant digits and
an appropriate prefix: (6%)
c) Convert a pcf to kN/m3. Evaluate the answer to three
significant digits and an
appropriate prefix: (8%)
Question 2: An Egyptian piramid has a square base and
symmetrical sloping
faces. The inclination of each slopping face is α. At a distance
AO from the
base, on level ground, the angle of inclination to the apex is β.
Pick up your
personalized data from the table below. (20%)

First Letter of Your
First Name “α”
(degrees)
Second Letter of
Your First Name “β”
(degrees)
Last Name “AO”
A-G 53007’ A-G 27009’ A-G 600 ft
H-M 51051’ H-M 30027’ H-M 500 ft
N-R 47032’ N-R 22048’ N-R 400
ft
S-Z 60015’ S-Z 20051’ S-Z 700
ft
a) Circle your data in the table above with a red marker. Then
draw your sketch
with your personal data. Draw in scale. (2%)
b) Find the vertical height TB. (6%)
c) Find the slant height TA. (6%)
d) Find the width of the pyramid base. (6%)

Question 3: The coplanar concurrent force system shown is
made of two forces F1
and F2. Pick up your personalized data from the table below .
(20%)
First Name “F1”
Second Letter of
Your First Name “F2”
Last Name “α”
A-G 75 lb A-G 60 lb A-G 300
H-M 80 lb H-M 55 lb H-M 320
N-R 90 lb N-R 50 lb N-R 340
S-Z 100 lb S-Z 45 lb S-Z 360
draw your sketch

with your personal data. Draw in scale. (2%)
b) Determine the magnitude of the resultant force graphically.
Use triangle
and/or parallelogram method. (6%)
c) Determine the magnitude of the resultant force analytically.
(6%)
d) Analytically, determine the direction angle φx of the
resultant force measured
counterclockwise from negative X axis. (6%)

Question 4: The transformer with weight F is being lifted by
two forces F1
and F2 shown below. Pick up your personalized data from the
table below
(20%)
First Name “F”
Second Letter of
Your First Name “F1”
Last Name “α”
A-G 6000 lb A-G 5000 lb A-G 250
H-M 6500 lb H-M 4800 lb H-M 270
N-R 7000 lb N-R 4600 lb N-R 290
S-Z 7500 lb S-Z 4400 lb S-Z 310
draw your
structure with your personal data. Draw in scale. (2%)
b) Graphically determine the magnitude of the force F2 so that
the resultant of
the lifting force (which is equal to F) will act vertically upward.
Use the

triangle and/or parallelogram method. (6%)
c) Determine the magnitude of force F2 analytically. (6%)
d) Analytically, determine the direction angle θ. (6%)
Question 5: The resultant force F of three concurrent forces F1,
F2, F3
shown, is acting vertically upward along the Y axis. Pick up
your
personalized data from the table below. (20%)
First Letter of
Your First

Name “F”
Second Letter
of Your First
Name “F2”
First Letter of
Your Last
Name “F3”
Second Letter
of Your Last
Name “α”
A-G 300 lb A-G 500 lb A-G 240 lb A-G
300
H-M 350 lb H-M 550 lb H-M 260 lb H-M
320
N-R 400 lb N-R 460 lb N-R 280 lb N-R
340
S-Z 450 lb S-Z 600 lb S-Z 300 lb S-Z
360
draw your
structure with your personal data. Draw in scale. (2%)
b) Graphically determine the magnitude of the force F1 using
component
method. (6%)

c) Determine the magnitude of force F1 analytically using
component method.
(6%).
d) Analytically, determine the direction angle θ. (6%)
Running Head: MICROSOFT Annual Report Project 3
1
MICROSOFT
9
Annual Report Project 3
Lakisha Trammel
Dr. Ron Stunda
GUC
ACC-616-0500
January 27, 2021

Introduction
The main purpose of this report is to analyze horizontally and
vertically, both income statement and balance sheet within the
last three years of Microsoft. The years we are looking for are
from 2018 - 2020, with June 30th, year-end date.
Vertical and Horizontal Analysis of Income Statement
Microsoft's vertical income statement demonstrations that the
company has increased its bottom-line profitability, and has
done so by improving their controlling expenses. The cost of
revenue decreased from 34.8% in 2018 to 34.1% in 2019, and
then decreased to 32.2% in the financial year ended on June 30,
2020. That caused the gross profit to increase from 65.2% to
67.8% over the same time period.
The company controlled its expenses by covering them in a
regular manner. As a result, the ratio for SG&A expenses
decreased from 20.1 % to 18.4 % in 2011, to 17.3 % in 2012,
and then further decreased to 16.7 % in 2016 and then further to
16.3 % in 2017.
However, the company has gradually increased its R&D
expenses as it is necessary for the development and growth of
the company. In turn, operating profits more than doubled from
31.8% in 2018 to 37% in 2020. Non-operating costs also
declined by a small amount in the second year compared to the
first. The overall amount of taxable income increased from
33.1% in 2018 to 34.7% in 2019, and then to 37.1% in 2020.
Although income tax expenditure as a proportion of federal

revenue decreased from 18% in 2018 to 6.1% in 2020, it
continues to decrease in figures. With the rise of every fiscal
year, the net income rose from 15%, 2018 to more than 31% by
the end of the calendar year 2020.
Microsoft's revenue increased % for 2019 as opposed to 2018,
and then increased 13.6 % in 2020. In 2018, the lower sales cost
decreased faster than the beginning and advancing of the 2018-
2020 period, but in 2019 and 2020, the income revenue jumped
by 11.9% in 2019 and 7.4% in 2020, respectively.
Aside from the double-digit increase in revenues and gross
profit for both years, the growth in these two segments was also
higher than the growth in revenue. As a result of improvements
in advertisement, revenues, and general and administrative cost
costs, a larger amount of revenue was achieved. However, non-
operating income has been declining since last year, and this
year's decrease does not appear to be related to interest income.
Income taxes decreased by 78 % in 2018, but jumped back up to
an unexpected level in 2020. As a result, net income rose by
136.8% in 201, a further 12.8% in 2020.
Balance Sheet Vertical and Horizontal Analysis
The percentage by which cash and cash equivalents fell in
the last three years from more than half to less than half of total
deposits. Inventory levels declined as compared to years past
while receivables and other current assets increased a tiny
amount. Since 2018, total current assets fell by 2%, from $29
billion to $28.4 billion. The decrease in your current assets will
help you decrease your current liabilities. Yet liability remains
roughly the same over the past three years.
Total liabilities increased, but assets increased. Even more
impressive is the increase in net worth since depreciation, and
also the increase in property, plant and equipment, because of
depreciation. The result of all these factors was that both
tangible and intangible assets increased. It rationalizes the
decline in assets, mostly cash, as the company has misused
some of its internal capital to fund a few acquisitions. The long
term investments have been increasing over time, albeit at a

slow pace.
Current liabilities have increased substantially, but not enough
to offset the large increase in provisions and other current
liabilities.
Even though the inventory of current and non-current assets are
low, the stocks of non-current assets decreased gradually over
the last three years and reached 60.7 % of the total assets.
The amount of long term debt, which is declining, was on a rise
up to a number of 28.0%, then it went down to 22.1%. The
amount of both payable and accrued liabilities has declined
slightly over the last three years, but remains small compared to
the total assets of the company. As a result, total liabilities
decreased from 45.4% down to 37.7%
The stock price increased due to the issuance of new shares and
retained earnings. In short, in 2018, the retained earnings
amount decreased to 5.3% while in 2020, the retained earnings
percentage continues to rise up to 11.5%.
Overall total current assets increased as the level of
current assets increased.
The horizontal review in the balance sheet reveals that
cash, inventory, and investments rose marginally in 2020 as
compared to 2019.
The total value of non-current assets also increased with the rise
in the value of the company's plant and equipment. Over time
the overall investments increased but the percentage of total
investments decreased. Some assets are expected to decrease by
more than 11% in 2020 compared to the previous year while
others are expected to rise by just about 98% in 2019.
The liabilities are expected to grow by 18.7% in the next three
years and around 4.2% in the next two years. The main part of
the rise came from the summer expense of development due to
provisions and borrowing and from other current liabili ties.
Long-term liabilities in the company's balance sheet dropped
considerably as the company paid down long-term debt. Other
non-current liabilities, however, are actually increasing in the
past few years.

Although total equity increased in the first half of this year, half
of the increase came from the issuance of new equity.
References
Microsoft, (2020). Annual Report 2020- Satya Nadella, Chief
Executive Officer. Retrieved from https://microsoft.gcs-
web.com/static-files/4e7064ed-bbf7-4140-a8cb-79aba77421b9
Executive Officer. Retrieved from
https://www.microsoft.com/investor/reports/ar19/index.html
Nadella, S., & London, S. (2018). Microsoft’s Next Act. The
McKinsey Quarterly.

Appendix
Total Current Assets18191517555216966260.4%61.3%65.5%
Deferred Costs/Assets, Current
Total Non-Current
Assets1193961110048918639.6%38.7%34.5%
Net Property, Plant and
Equipment52904438563614617.6%15.3%14.0%
Net Intangible Assets50389497764373616.7%17.4%16.9%
Total Long Term
Investments2965264918621.0%0.9%0.7%
Other Non-Current Assets131381472374424.4%5.1%2.9%
Total Assets301311286556258848100.0%100.0%100.0%
Financial Liabilities, Current3749551639981.2%1.9%1.5%
Provisions, Current7874683061032.6%2.4%2.4%
Current36000326762890511.9%11.4%11.2%
Other Current Liabilities10027935187443.3%3.3%3.4%
Total Current Liabilities72310694205848824.0%24.2%22.6%
Long Term Debt59578666627224219.8%23.3%27.9%

Current7671618855682.5%2.2%2.2%
Tax Liabilities, Non-Current2042335410.1%0.1%0.2%
Deferred Income/Customer
Advances/Billings in Excess of Cost, Non-
Current3180453038151.1%1.6%1.5%
Payables and Accrued Expenses, Non-
Current2943229612302659.8%10.3%11.7%
Other Non-Current
Liabilities10632758152113.5%2.6%2.0%
Total Non-Current
Liabilities11069711480611764236.7%40.1%45.4%
Total Liabilities18300718422617613060.7%64.3%68.0%
Stockholders1183041023308271839.3%35.7%32.0%
Paid in Capital80552785207122326.7%27.4%27.5%
Retained Earnings/Accumulated
Deficit34566241501368211.5%8.4%5.3%
Income/Losses3186-340-21871.1%-0.1%-0.8%
Total Equity1183041023308271839.3%35.7%32.0%
Total Equity and Liabiltiies
301311286556258848100.0%100.0%100.0%
MSFT_BalanceSheet_Annua Horizontal
202020192018202020192018
Cash, Cash Equivalents and Short Term
Investments136527133819133768102.0%100.0%100.0%
Inventories18952063266291.9%77.5%100.0%
Trade and Other Receivables,
Current320112952426481108.4%111.5%100.0%
Other Current
Assets11482101466751113.2%150.3%100.0%
Total Current
Assets181915175552169662103.6%103.5%100.0%
Deferred Costs/Assets, Current
Net Property, Plant and

Equipment529044385636146120.6%121.3%100.0%
Net Intangible
Assets503894977643736101.2%113.8%100.0%
Total Long Term
Investments296526491862111.9%142.3%100.0%
Other Non-Current
Assets1313814723744289.2%197.8%100.0%
Total Non-Current
Assets11939611100489186107.6%124.5%100.0%
Total Assets301311286556258848105.1%110.7%100.0%
Financial Liabilities,
Current37495516399868.0%138.0%100.0%
Provisions, Current787468306103115.3%111.9%100.0%
Current360003267628905110.2%113.0%100.0%
Other Current
Liabilities1002793518744107.2%106.9%100.0%
Total Current
Liabilities723106942058488104.2%118.7%100.0%
Long Term
Debt59578666627224289.4%92.3%100.0%
Current767161885568124.0%111.1%100.0%
Tax Liabilities, Non-
Current20423354187.6%43.1%100.0%
Deferred Income/Customer Advances/Billings in Excess
of Cost, Non-Current31804530381570.2%118.7%100.0%
Payables and Accrued Expenses, Non-
Current29432296123026599.4%97.8%100.0%
Other Non-Current
Liabilities1063275815211140.2%145.5%100.0%
Total Non-Current
Liabilities11069711480611764296.4%97.6%100.0%
Total Liabilities18300718422617613099.3%104.6%100.0%
Stockholders11830410233082718115.6%123.7%100.0%

Paid in Capital805527852071223102.6%110.2%100.0%
Retained Earnings/Accumulated
Deficit345662415013682143.1%176.5%100.0%
Income/Losses3186-340-2187-937.1%15.5%100.0%
Total Equity11830410233082718115.6%123.7%100.0%
Total Equity and Liabiltiies
301311286556258848105.1%110.7%100.0%
MSFT_Income Statement Verical
202020192018202020192018
Total Revenue143,015 125,843 110,360 100.0%100.0%100.0%
Cost of Revenue46,078 42,910 38,353 32.2%34.1%34.8%
Gross Profit96,937 82,933 72,007 67.8%65.9%65.2%
Selling, General and Administrative Expenses24,709 23,098
22,223 17.3%18.4%20.1%
Research and Development Expenses19,269 16,876 14,726
13.5%13.4%13.3%
Operating Income/Expenses43,978 39,974 36,949
30.8%31.8%33.5%
Total Operating Profit/Loss52,959 42,959 35,058
37.0%34.1%31.8%
Non-Operating Income/Expenses, Total77 729
1,416 0.1%0.6%1.3%
Pretax Income53,036 43,688 36,474 37.1%34.7%33.1%
Provision for Income Tax8,755 4,448 19,903
6.1%3.5%18.0%
Net Income from Continuing Operations44,281 39,240
16,571 31.0%31.2%15.0%
MSFT_IncomeStatement_Horizontal
202020192018202020192018
Total Revenue143,015 125,843 110,360
113.6%114.0%100.0%
Cost of Revenue46,078 42,910 38,353
107.4%111.9%100.0%
Gross Profit96,937 82,933 72,007
116.9%115.2%100.0%

Selling, General and Administrative Expenses24,709
23,098 22,223 107.0%103.9%100.0%
Research and Development Expenses19,269 16,876
14,726 114.2%114.6%100.0%
Operating Income/Expenses43,978 39,974 36,949
110.0%108.2%100.0%
Total Operating Profit/Loss52,959 42,959 35,058
123.3%122.5%100.0%
Non-Operating Income/Expenses, Total77 729
1,416 10.6%51.5%100.0%
Pretax Income53,036 43,688 36,474
121.4%119.8%100.0%
Provision for Income Tax8,755 4,448 19,903
196.8%22.3%100.0%
Net Income from Continuing Operations44,281 39,240
16,571 112.8%236.8%100.0%
Running Head: MICROSOFT
MICROSOFT 2
MICROSOFT
Lakisha Trammel
GCU
1/12/2021

In the MD&A of the 2019 annual report, Microsoft highlighted
various factors such as increasing revenues, a potential rise in
market-share due to new product (Azure), stiff competition and
emergence of artificial intelligence (AI) as the main factors
influencing its future business viability. According to
Microsoft, the future will be influenced by AI and Microsoft is
confident that it will expand market share due to its new
product called Azure. The four key issues are business, market
for equity, the management and exhibits. These four issues have
been expanded significantly in the report and a summary is
included in this study.
The first issue is the exhibit that seeks to disclose the schedules
for other reports the periods ending as well as the date of
release. Among such include the income statement, balance
sheet, cash flow statement, shareholders’ equity statements,
reports of independent account firms and finally the notes to
financial statement (Nadella & London, 2018). These are most
import documents to the investors because they give financial
position of the company. It is from her that investors know
whether company is making profits or losses. Such documents
either scars away investors or invites them in.
The second issue is the executive and the management. The
company has seven senior management offices. The company is
lead by a chief executive officer. Below the chief executive
office are five executive vice presidents. The company resident
doubles as the chief legal officer. The chief executive office`s
name is Satya Nadella who was, according to the 2019 10K
report, appoint in the year 2014. The chief marketing officer,
one of the vice presidents was appointed in the year 2016. Other
vice presidents have always been appointing from the human
resource pool that the company has trained over the years.
Business: this issue covers the company mission and vision
about the future. It is in this section that the company explains
its products. Among the products offered by the company
include operating system, server application, tools to manage

server and desktop, video games, cross device productivity
application and also business solution application. The
ambition that drives the business in the to create more personal
computing power, to improve on the artificial intelligent and
finally to reinvent productive. The latest of its product is the
Azure SQL database where AI is incorporated in server
management (Microsoft, 2019).
The last issue addressed is the market for registration of the
common stock. In this section, the available information is
about the prices of the shares sold in the market. In accordance
with April 2019, there had been 8, 547, 612 shares that were
purchased at $ 122.85 and this was approximated to $ 14.55
billion. The dividend was declared on June 12 the same and
after recording on august 15, the were paid on September 12.
Each share received $ 0.46 and this total to $ 3.516 billion. The
Microsoft continues that $ 7.7 billion was return as repurchases
to shareholders.
References
Fitchett, L. (2019). A Strategic Audit of Microsoft Azure.
Executive Officer. Retrieved from
https://www.microsoft.com/investor/reports/ar19/index.html
Nadella, S., & London, S. (2018). Microsoft’s Next Act. The
McKinsey Quarterly.
TO:

FROM:
DATE:
SUBJECT:
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