Assume that Microsoft bows to political pressures and decides not to repurchase any stock. What is the new level of retained earnings, ST debt, and LT debt?

Modify the sheet by setting repurchases equal to zero

Calculate the short-term and long-term debt that makes A = L+ SE, ensuring that all previous assumptions still hold regarding the quick ratio and growth rates.

B D E C Change 1 2021 2020 155,640.78 36,492.54 2,160.30 13,089.48 60,310.56 3,393.78 57,443.46 14,963.64 343,494.54 19,113.78 136,527.00 4,481.54 32,011.00 265.30 1,895.00 1,607.48 11,482.00 7,406.56 52,904.00 416.78 2,977.00 7,054.46 50,389.00 1,837.64 13,126.00 42,183.54 301,311.00 min 2 Assets 3 Cash and Short Term Investment 4 Accounts Receivable, net 5 Inventories 6 Other Current Assets 7 Net Property, Plant and Equipment 8 Total Investments and Advances 9 Intangible Assets 10 Other Assets 11 Total Assets 12 Liabilities 13 Accounts Payable 14 ST debt and current portion LT debt 15 Other Current Liabilitites 16 Long-Term debt 17 Deferred Taxes 18 Other liabilities 19 Total Liabilities 20 Equity 21 Common Stock and paid-in-capital 22 Retained Earnings 23 Unrealized Gain/Loss Marketable Securities 24 Other Appropriated Reserves 25 Total Equity 26 Liabilities and Shareholders's Equity 14,284.20 14,274.20 53,875.00 96,390.90 (6,201.00) 40,693.00 213,316.30 1,754.20 8,369.20 0 20,185.90 0 12,530.00 5,905.00 53,875.00 76,205.00 (6,201.00) 40,693.00 183,007.00 0 0 11,874.24 0 80,552.00 46,440.24 5,478.00 (2,292.00) 130,178.24 343,494.54 80,552.00 34,566.00 5,478.00 (2,292.00) 118,304.00 301,311.00 0 27 28 Sales/Revenue 29 COGS excuding D&A 30 Depreciation and Amortization Expense 31 SG&A Expense 32 EBIT 33 Unusual Expense 34 Non-Operating Income 35 Non-Operating Interest Income 36 Interest Expense 37 Income Tax 38 Net Income 39 Common Stock cash dividends 40 Common Stock repurchased 41 Addition to Retained Earnings 42 43 EFN Check 44 Quick ratio 45 Total payout ratio 46 Debt ratio 47 163,037.10 38,506.92 14,022.00 50,134.92 60,373.26 (140.22) (153.90) 3,055.20 2,953.74 9,980.70 50,480.34 17,650.62 20,955.48 11,874.24 20,022.10 143,015.00 4,728.92 33,778.00 1,722.00 12,300.00 6,156.92 43,978.00 7,414.26 52,959.00 (17.22) (123.00) (18.90) (135.00) 375.20 2,680.00 362.74 2,591.00 1,225.70 8,755.00 6,199.34 44,281.00 2,167.62 15,483.00 2,573.48 18,382.00 1,458.24 10,416.00 2.49 0.35 0.62 2.49 0.35 0.61 B D E C Change 1 2021 2020 155,640.78 36,492.54 2,160.30 13,089.48 60,310.56 3,393.78 57,443.46 14,963.64 343,494.54 19,113.78 136,527.00 4,481.54 32,011.00 265.30 1,895.00 1,607.48 11,482.00 7,406.56 52,904.00 416.78 2,977.00 7,054.46 50,389.00 1,837.64 13,126.00 42,183.54 301,311.00 min 2 Assets 3 Cash and Short Term Investment 4 Accounts Receivable, net 5 Inventories 6 Other Current Assets 7 Net Property, Plant and Equipment 8 Total Investments and Advances 9 Intangible Assets 10 Other Assets 11 Total Assets 12 Liabilities 13 Accounts Payable 14 ST debt and current portion LT debt 15 Other Current Liabilitites 16 Long-Term debt 17 Deferred Taxes 18 Other liabilities 19 Total Liabilities 20 Equity 21 Common Stock and paid-in-capital 22 Retained Earnings 23 Unrealized Gain/Loss Marketable Securities 24 Other Appropriated Reserves 25 Total Equity 26 Liabilities and Shareholders's Equity 14,284.20 14,274.20 53,875.00 96,390.90 (6,201.00) 40,693.00 213,316.30 1,754.20 8,369.20 0 20,185.90 0 12,530.00 5,905.00 53,875.00 76,205.00 (6,201.00) 40,693.00 183,007.00 0 0 11,874.24 0 80,552.00 46,440.24 5,478.00 (2,292.00) 130,178.24 343,494.54 80,552.00 34,566.00 5,478.00 (2,292.00) 118,304.00 301,311.00 0 27 28 Sales/Revenue 29 COGS excuding D&A 30 Depreciation and Amortization Expense 31 SG&A Expense 32 EBIT 33 Unusual Expense 34 Non-Operating Income 35 Non-Operating Interest Income 36 Interest Expense 37 Income Tax 38 Net Income 39 Common Stock cash dividends 40 Common Stock repurchased 41 Addition to Retained Earnings 42 43 EFN Check 44 Quick ratio 45 Total payout ratio 46 Debt ratio 47 163,037.10 38,506.92 14,022.00 50,134.92 60,373.26 (140.22) (153.90) 3,055.20 2,953.74 9,980.70 50,480.34 17,650.62 20,955.48 11,874.24 20,022.10 143,015.00 4,728.92 33,778.00 1,722.00 12,300.00 6,156.92 43,978.00 7,414.26 52,959.00 (17.22) (123.00) (18.90) (135.00) 375.20 2,680.00 362.74 2,591.00 1,225.70 8,755.00 6,199.34 44,281.00 2,167.62 15,483.00 2,573.48 18,382.00 1,458.24 10,416.00 2.49 0.35 0.62 2.49 0.35 0.61