For the first quarter of 1998, Microsoft reported the following reconciliation between net income and comprehensive income:

Three Months Ended September 30 (millions of dollars): 1997 1998 Net income $663 1,683 Net unrealized investment gains 56 150 Translation adjustments and other (117) 43 Comprehensive income 602 1,876 What types of events give rise to the adjustments made by Microsoft? As a financial analyst, what questions would you have for the CFO about the comprehensive income statement?

AppendixLO1