1. Select one (1) U.S. publicly traded company and review its most recent Annual
ID: 2729053 • Letter: 1
Question
1. Select one (1) U.S. publicly traded company and review its most recent Annual Report. (You may use one (1) of the three (3) companies you selected for your Stock Journal assignment.)
Use the Income Statement and Balance Sheet to determine the changes in:
assets, liabilities, and equity
total revenue and net income
2. Briefly describe the change from the current and prior years in each of these key areas and determine if the changes would be positive or negative from an investor / stockholder’s view.
Stock Journal Week 3 Stock name Symbol Industry Price shares total 1 Apple Inc. AAPL Electronics $105.97 94 $ 9,961.18 2 Facebook FB Media $ 113.44 88 $ 9,982.72 3 Microsoft MSFT Technology $ 55.78 90 $ 5,020.20 Total $ 24,964.10Explanation / Answer
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INCOME STATEMENTS of Microsoft (In millions, except per share amounts) Year Ended June 30, 2015 2014 Canges Revenue $93,580 $86,833 $6,747 Cost of revenue 33,038 27,078 Gross margin 60,542 59,755 Research and development 12,046 11,381 Sales and marketing 15,713 15,811 General and administrative 4,611 4,677 Impairment, integration, and restructuring 10,011 127 Operating income 18,161 27,759 Other income, net 346 61 Income before income taxes 18,507 27,820 Provision for income taxes 6,314 5,746 Net income $12,193 $22,074 ($9,881) Earnings per share: Basic $1.49 $2.66 Diluted $1.48 $2.63 Weighted average shares outstanding: Basic 8,177 8,299 Diluted 8,254 8,399 Cash dividends declared per common share $1.24 $1.12 BALANCE SHEETS of Microsoft: (In millions) June 30, 2015 2014 Changes Assets (2015-2014) Current assets: Cash and cash equivalents $5,595 $8,669 ($3,074) Short-term investments (including securities loaned of $75 and $541) 90,931 77,040 $13,891 Total cash, cash equivalents, and short-term investments 96,526 85,709 $10,817 Accounts receivable, net of allowance for doubtful accounts of $335 and $301 17,908 19,544 ($1,636) Inventories 2,902 2,660 $242 Deferred income taxes 1,915 1,941 ($26) Other 5,461 4,392 $1,069 Total current assets 124,712 114,246 $10,466 Property and equipment, net of accumulated depreciation of $17,606 and $14,793 14,731 13,011 $1,720 Equity and other investments 12,053 14,597 ($2,544) Goodwill 16,939 20,127 ($3,188) Intangible assets, net 4,835 6,981 ($2,146) Other long-term assets 2,953 3,422 ($469) Total assets $176,223 $172,384 $3,839 Liabilities and stockholders’ equity Current liabilities: Accounts payable $6,591 $7,432 ($841) Short-term debt 4,985 2,000 $2,985 Current portion of long-term debt 2,499 0 $2,499 Accrued compensation 5,096 4,797 $299 Income taxes 606 782 ($176) Short-term unearned revenue 23,223 23,150 $73 Securities lending payable 92 558 ($466) Other 6,766 6,906 ($140) Total current liabilities 49,858 45,625 $4,233 Long-term debt 27,808 20,645 $7,163 Long-term unearned revenue 2,095 2,008 $87 Deferred income taxes 2,835 2,728 $107 Other long-term liabilities 13,544 11,594 $1,950 Total liabilities 96,140 82,600 $13,540 Commitments and contingencies Stockholders’ equity: Common stock and paid-in capital – shares authorized 24,000; outstanding 8,027 and 8,239 68,465 68,366 $99 Retained earnings 9,096 17,710 ($8,614) Accumulated other comprehensive income 2,522 3,708 ($1,186) Total stockholders’ equity 80,083 89,784 ($9,701) Total liabilities and stockholders’ equity $176,223 $172,384 $3,839Related Questions
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