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Company: Microsoft Corporation Item Amount (in millions) Revenue $198,270 Cost of Goods Sold (COGS) $59,850 Gross Profit $138,420 Operating Expenses $50,000 Operating Income $88,420 Interest

Company: Microsoft Corporation

Item

Amount (in millions)

Revenue

$198,270

Cost of Goods Sold (COGS)

$59,850

Gross Profit

$138,420

Operating Expenses

$50,000

Operating Income

$88,420

Interest Expense

$2,100

Income Tax Expense

$16,300

Net Income

$70,020

Questions:

  1. What is Microsoft's gross profit margin?
  2. Calculate Microsoft's operating profit margin.
  3. Determine Microsoft's net profit margin.
  4. If Microsoft’s total assets are $334,000 million, what is the return on assets (ROA)?
  5. What is the return on equity (ROE) if Microsoft’s total equity is $155,000 million?

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