_busi_600_Describe the sampling strategy-case_assignment_2.docx

Individual LearningProjectQuestions

Name_______________________________

General Information:

1.What is the name of your corporation? Microsoft Corporation

2.Where are the corporate headquarters? One Microsoft Way, Redmond, WA 98052

Q2 19 $102.32

Q3 19 $117.94

Q4 19 $133.96

Q1 20 $139.03

Q2 20 $157.70

Q3 20 $157.71

Q4 20 $203.51

6.Who is the company’s transfer agent and where are they located? ComputerShare P.O. Box 505005

Louisville, Kentucky 40233

7.Who are your company’s competitors? Apple, AWS, Google, IBM, Cisco, Oracle, VMware, Sony, Salesforce

Internet Information:

11.What is the Internet address of your corporation? Be sure it appears as a hyperlink.

https://www.microsoft.com/en-us

12.Is the corporation’s Annual Report online? Yes

13.Are its financial statements on-line? Yes

14.Is your company listed on Annualreports.com? Yes

15.How long is your company’s 10-K report at the Securities and Exchange Commission website (Edgar

Database)?104 pages

Investing 13,576 11,356

17.Were there any Non-Cash Investing/Financing Transactions? Describe the type and amount.

- Additions to property and equipment (15,441)

- Acquisition of companies (2,251)

- Purchases of investments (77,190)

- Maturities of investments 66,449

- Sales of investments 17,721

18.What is the dollar difference between accrual net income and Cash provided by Operations? 60,675 –

44,281 = 16,394

19.What investing activity provided the largest inflow of cash in the current year? Maturities of

repurchased (22,968)

23.Does the company have sufficient cash inflows from the appropriate category? Describe any problems

the company manyexperiencewith cash flow from your analysis of the cash flow statement. Yes. The

net cash used in financing could become a problem if it still increases.

24.Show the change in Retained Earnings for the2most recent years. What was net income for each

year?How much was paid out in dividends each year?

2020 2019

Retained Earnings 34.566 billion 24.15 billion

Net Income 44,281 billion 39,240 billion

Dividends Paid (15,483)billion (14,108)billion

28.How many shares of each class of stock are authorized, how many are issued, and how many are

outstanding?

Year Ended June 30th 2020 2019 2018

Balance beginning of

year

7643 7677 7608

Issued 54 116 68

Purchased (126) (150) (99)

Balance end of year 7571 7643 7677

According to the Microsoft website it does not break down by class but simply says as of October 22, 2020

there were 7,560,495,696 shares outstanding.

Policies? 14

33.What does it include as Cash and Cash Equivalents? Cash, Commercial Paper, Certificates of Deposit

and Money Market Prefers

34.What method does it use to value Inventory? Inventory valuation is the determination which is used by

the cost amount (actual) field of the value entries to the item.

35.What method(s) does it use to depreciate its assets? Straight line depreciation

36.Does it have any leased assets?If yes, describethem. Microsoft has operating and financed leases for

data centers, corporate offices, research and development facilities, retail stores and certain

equipment.

37.What policies does it have in regard to Foreign Currency Translations? Assets and liabilities translated

Report of the Independent Auditor(s):

40.Who is/are your company’s auditor(s)? Deloitte and Touché LLP

41.Where are they located? 1633 Broadway, New York, NY 10019

42.Does the auditor(s)give a qualified opinion, an unqualified opinion, a disclaimer of opinion, or an

adverse opinion?What does that opinion mean? Is it good? It goes a qualified good opinion.

43.What is the auditor’sresponsibility in regard to the financial statements? Their responsibility is to

express an opinion on the company’s financial statements based on audits.

44.What is management’s responsibility in regard to the financial statements? The responsibility of

management is the company’s financial statements and it’s authenticity.

47.Who bears the responsibility for the integrity and the objectivity of the financial statements? The Chief

Financial Officer – Frank H. Brod

48.What does management say they are doing to assure the public that the financial information is

reliable? Management conducted an evaluation of the effectiveness of the internal control over

financial reporting.

49.What is the responsibility of the Audit Committee of the Board of Directors? The audit committee

oversees its financial statements and reporting. Per regulation, the audit committee must include

outside board members as well as well as those versed in finance and accounting in order to produce

honest and accurate reports.

formulas). Please see excel spreadsheet.

(these must be in an Excel spreadsheet, using formulas to calculate the ratios).You should present

them in a similar format as the text: group by category, list name of ratio, formula in words, and the

ratio calculation. Give a short explanation of your conclusions about your company after each category

of ratios (i.e. How liquid is your company? How efficiently is it using its assets?etc.).

Conclusions:

53.Are you optimistic or pessimistic regarding the future of yourchosencorporation? Explain. I feel

optimistic about the future of the company because they constantly make investments into new

products to stay up with current trends and competition.

54.Would you invest in the stock of the company? Explain. I would invest in the stock because the stock

grows year by year and has not fallen besides when 2020 remained stagnant.