5. Microsoft Corporation is the developer of a broad line of computer software, including the Windows operating systems and Word and Excel programs. Following is a list of the financial statement items and amounts adapted from a recent Microsoft income statement and balance sheet. These items have normal debit and credit balances (arranged alphabetically) and are reported in million of dollars. For that year, 8,299 million shares of the company's stock were outstanding. The company closed its books on June 30, 2019. Item Accounts payable Account receivable (net) Accrued compensation Cash and short-term investments Common stocks (shares) Cost of goods sold General and admin. expenses Income taxes payable Long-term liabilities Net revenue Other current assets Amount ($) Item 7,432 Other current liabilities 19,544 Other income (net) 4,797 Other investments 85,709 Other non-current assets 68,366 Property, plant, and equipment (net) 26,934 Provision for income taxes 4,948 R&D expenses 782 Retained earnings 36,975 Sales and marketing expenses 86,833 Unearned revenue 8,993 Amount ($) 9,464 61 14,597 30,530 13,011 5,746 11,381 21,418 15,811 23,150 You're required to: A Prepare in good form an income statement (showing gross profit, income before taxes, net income and earnings per share) and a balance sheet for the year. B Compute the company's return on assets (ROA). Briefly explain its significance (Assume that Microsoft's total assets at the beginning of the year were $142,431 million). C If Microsoft has an additional $1,500 in general and admin. expenses (paid in cash), what would be the effect on its ROA increase, decrease, or no effect at all)