Microsoft Corporation Financial Statement Analysis
SuperClass"Just focus on Microsoft Corporation, After reviewing the 10K or Annual report filing for 2010 for ONLY Microsoft, respond to Questions 1 through 6.
It is useful to compare financial ratios for a company with financial ratios of its industry. Industry financial ratios can be found on Morningstar.com, Yahoo Finance and MSN Money.
1) What 3 items of important information does the income statement reveal about the financial performance of the company over the last three years?
Please provide Balance work sheet for the last three years.
2) What 3 items of important information does the balance sheet reveal about the financial position of the company over the last two years? Please provide Balance work sheet for the last two years.
3) Can you identify the major sources of funding used by the company from the information presented in the company's annual report? If not, how could you get this information?
4) Who is responsible for:
a) the issuance, and
b) the content
of the company financial statements?
5) What assurance, if any, is there that the financial statements are in compliance with GAAP, and are free of material misstatements?
6) Of what use, if any, are the notes to the financial statements?
Why would a company like Microsoft use slightly higher debt financing as opposed to equity? What is the advantage of doing that?
What are some of the measures Microsoft uses to manage operating expenses?
Did Microsoft use debt or equity financing? Explain.
Why should Microsoft provide notes to its financial statements?
11 years ago
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