BALANCE SHEETS - USD ($) $ in Millions Jun. 30, 2019 Jun. 30, 2018 Current assets: Cash and cash equivalents $ 11,356 $ 11,946 Short-term investments 122,463 121,822 Total cash, cash equivalents, and short- term investments 133,819 133,768 Accounts receivable, net of allowance for doubtful accounts of $411 and $377 29,524 26,481 Inventories 2,063 2,662 Other 10,146 6,751 Total current assets 175,552 169,662 Property and equipment, net of accumulated depreciation of $35,330 and 36,477 29,460 529,223 Operating lease right-of-use assets 7,379 6.686 Equity investments 2,649 1,862 Goodwill 42,026 35,683 Intangible assets, net 7,750 8,053 Other long-term assets 14,723 7,442 Total assets 286,556 258,848 Current liabilities: Accounts payable 9,382 8,617 Current portion of long-term debt 5,516 3,998 Accrued compensation 6,830 6,103 Short-term income taxes 5,665 2,121 Short-term unearned revenue 32,676 28,905 Other 9,351 8,744 Total current liabilities 69,420 58,488 Long-term debt 66,662 72,242 Long-term income taxes 29,612 30,265 Long-term unearned revenue 4.530 3,815 Deferred income taxes 233 541 Operating lease liabilities 6,188 5,568 Other long-term liabilities 7,581 5,211 Total liabilities 184,226 176,130 Commitments and contingencies Stockholders' equity: Common stock and paid-in capital - shares authorized 24,000; outstanding 78,520 71,223 7,643 and 7,677 Retained earnings 24,150 13,682 Accumulated other comprehensive loss (340) (2,187) Total stockholders' equity 102,330 82,718 Total liabilities and stockholders' equity 5 286,556 5 258,848BALANCE SHEETS - USD ($) $ in Millions Jun. 30, 2020 Jun. 30, 2019 Current assets: Cash and cash equivalents $ 13,576 $ 11,356 Short-term investments 122,951 122,463 Total cash, cash equivalents, and short- term investments 136,527 133,819 Accounts receivable, net of allowance for doubtful accounts of $788 and $411 32,011 29,524 Inventories 1,895 2,063 Other current assets 11,482 10,146 Total current assets 181,915 175,552 Property and equipment, net of accumulated depreciation of $43,197 and 44,151 36,477 $35,330 Operating lease right-of-use assets 8,753 7,379 Equity investments 2,965 2,649 Goodwill 43,351 42,026 Intangible assets, net 7,038 7,750 Other long-term assets 13,138 14,723 Total assets 301,311 286,556 Current liabilities: Accounts payable 12,530 9,382 Current portion of long-term debt 3,749 5,516 Accrued compensation 7,874 6,830 Short-term income taxes 2,130 5.665 Short-term unearned revenue 36,000 32,676 Other current liabilities 10,027 9,351 Total current liabilities 72,310 69,420 Long-term debt 59,578 66,662 Long-term income taxes 29,432 29,612 Long-term unearned revenue 3,180 4,530 Deferred income taxes 204 233 Operating lease liabilities 7,671 6,188 Other long-term liabilities 10,632 7,581 Total liabilities 183,007 184,226 Commitments and contingencies Stockholders' equity: Common stock and paid-in capital - shares authorized 24,000; outstanding 80,552 78,520 7,571 and 7,643 Retained earnings 34,566 24,150 Accumulated other comprehensive income (loss) 3,186 (340) Total stockholders' equity 118,304 102,330 Total liabilities and stockholders' equity $ 301,311 5 286,556CASH FLOWS STATEMENTS - USD ($) 12 Months Ended $ in Millions Jun. 30, 2020 Jun. 30, 2019 Jun. 30, 2018 Operations Net income $ 44,281 $ 39,240 [1] $ 16,571 Adjustments to reconcile net income to net cash from operations: Depreciation, amortization, and other 12,796 11,682 10,261 Stock-based compensation expense 5,289 4,652 3,940 Net recognized gains on investments and derivatives (219) (792) (2,212 Deferred income taxes 11 (6,463) (5, 143 Changes in operating assets and liabilities: Accounts receivable (2,577) (2,812) (3,862) Inventories 168 597 (465 Other current assets (2,330) (1,718) (952 ) Other long-term assets (1,037) (1,834) (285) Accounts payable 3,018 232 1,14 Unearned revenue 2,212 4,462 5,922 Income taxes (3,631) 2,929 18,183 Other current liabilities 1,346 1,419 798 Other long-term liabilities 1,348 591 (20 Net cash from operations 60,675 62,185 43,884 Financing Repayments of short-term debt, maturities of 90 days or less, net (7,324 ) roceeds from issuance of debt 0 7,183 Cash premium on debt exchange (3,417) Repayments of debt (5,518) (4,000) (10,060 ) Common stock issued 1,343 1,142 1,002 Common stock repurchased (22,968) (19,543) (10,721) common stock cash dividends paid (15,137) (13,811) (12,699 ) Other, net (334) (675) (971 Net cash used in financing (46,031) (36,887) (33,590) Investing Additions to property and equipment (15,441) (13,925) (11,632 ) Acquisition of companies, net of cash acquired, and purchases of intangible (2,521) (2,388) (888) and other assets urchases of investments (77,190) (57,697) (137,380) Maturities of investments 66,449 20,043 26,360 Sales of investments 17,721 38, 194 117,577 Other, net (1,241) (98) Net cash used in investing (12,223) (15,773) (6,061) Effect of foreign exchange rates on cash and cash equivalents (201) 115) 50 Net change in cash and cash equivalents 220 (590) 4,283 Cash and cash equivalents, beginning of period 11,356 11,946 7,663 Cash and cash equivalents, end of period $ 13,576 $ 11,356 $ 11,946 [1] Reflects the $157 million net charge related to the enactment of the TCJA for the second quarter and the $2.6 billion net income tax benefit related to the intangible property transfers for the fourth quarter, which together increased net income by $2.4 billion for fiscal year 2019. See Note 12- Income Taxes for further information.INCOME STATEMENTS - USD ($) 12 Months Ended shares in Millions, $ in Millions Jun. 30, 2020 Jun. 30, 2019 Jun. 30, 2018 Revenue $ 143,015 $ 125,843 $ 110,360 Cost of revenue 46,078 42,910 38,353 Gross margin 96,937 82,933 72,007 Research and development 19,269 16,876 14,726 Sales and marketing 19,598 18,213 17,469 General and administrative 5, 111 4.885 4,754 Operating income 52,959 42,959 35,058 Other income, net 77 729 1,416 Income before income taxes 53,036 43,688 36,474 Provision for income taxes 8,755 4,448 19,903 Net income $ 44,281 $ 39,240 [1] $ 16,571 Earnings per share: Basic $ 5.82 $ 5.11 $ 2.15 Diluted $ 5.76 $ 5.06 [2] $ 2.13 Weighted average shares outstanding: Basic 7,610 7,673 7,700 Diluted 7,683 7,753 7,794 Product Revenue $ 68,041 $ 66,069 $ 64,497 Cost of revenue 16,017 16,273 15,420 Service and Other Revenue 74,974 59,774 45,863 Cost of revenue $ 30,061 $ 26,637 $ 22,933 [1] Reflects the $157 million net charge related to the enactment of the TCJA for the second quarter and the $2.6 billion net income tax benefit related to the intangible property transfers for the fourth quarter, which together increased net income by $2.4 billion for fiscal year 2019. See Note 12 - Income Taxes for further information. (2] Reflects the net charge related to the enactment of the TCJA and the net income tax benefit related to the intangible property transfers, which decreased (increased) diluted EPS $0.02 for the second quarter, $(0.34) for the fourth quarter, and $(0.31) for fiscal year 2019.. Extend the analysis by computing the following ratios for the current and prior years for the companyes). (As- sume a marginal tax rate of 22%.) - Return on equity (ROE) - Return on assets (RCA) 0 Return on net operating assets (RNOA) - Times interest earned Operating cash flow to debt Free cash flow to debt Current ratio Quick ratio Liabilities-to-equity ratio Total debt-to-equity ratio