1. Go to the Microsoft Corporate website (Official Home Page) and click on Investors at the bottom of the page. This will direct you to the Investor Relations Page. Click on Annual Reports and select download the 2019 Annual Report. Scroll down to the 2019, 2018, 2017 comparative financial statement of Cash Flows Statement (About half way down the document).

Questions:

a. What cash flow format does Microsoft use? How do you know? What are the cash flows for Operating, Investing, and Financing in 2019?

b. Explain the Financing cash flows for 2019. What are the two major financing cash flows? What is Microsoft doing? Explain your answer in detail.

c. Explain the Investing cash flows for 2019. What are the two major Investing cash flows? What is Microsoft doing? Explain in detail.

d. Looking at the balance sheet for 2019 what is Cash, Cash Equivalents, and Short term investments at June 30, 2019? What is a cash equivalent (look it up in your text book)?