Financial Statement Analysis

Purpose

The purpose of this is to practice the basic analyses of financial statements.

Instructions

Part 1: Understand Microsofts Financial Statements:

Search Microsofts 2019 financial statements and answer the questions for Microsoft Inc.

1. Find Microsofts income statements from its 2019 annual report.
   1. How much revenue did Microsoft earn during the year ended on 6/30/2019?
   2. Find Note 1 on Page 47 of Microsofts Annual Report regarding Revenue. What are major revenue streams of Microsoft?
   3. When does Microsoft recognize revenue?
   4. What are Microsofts major expenses in operations?
   5. Does Microsoft report income taxes?
   6. Read Note 1 to Financial Statements. What are included in Microsofts Research and Development expenses and how to recognize the expenses?
   7. What is Microsofts basic Earnings Per Share (EPS) for the year ended on 6/30/2019? What does this number mean?
   8. Are Microsofts income statements single-step or multiple-step? How do you tell?