INCOME STATEMENTS

(In millions, except per share amounts)
Year Ended June 30,	2014	2013	2012
Revenue	$86,833	$77,849	$73,723
Cost of revenue	26,934	20,249	17,530
Gross margin	59,899	57,600	56,193
Research and development	11,381	10,411	9,811
Sales and marketing	15,811	15,276	13,857
General and administrative	4,821	5,149	4,569
Goodwill impairment	0	0	6,193
Integration and restructuring	127	0	0
Operating income	27,759	26,764	21,763
Other income, net	61	288	504
Income before income taxes	27,820	27,052	22,267
Provision for income taxes	5,746	5,189	5,289
Net income	$22,074	$ 21,863	$16,978
Earnings per share:
Basic	$2.66	$2.61	$2.02
Diluted	$2.63	$2.58	$2.00
Weighted average shares outstanding:
Basic	8,299	8,375	8,396
Diluted	8,399	8,470	8,506
Cash dividends declared per common share	$1.12	$0.92	$0.80

See accompanying notes.

COMPREHENSIVE INCOME STATEMENTS

(In millions)
Year Ended June 30,	2014	2013	2012
Net income	$22,074	$21,863	$16,978
Other comprehensive income (loss):
Net unrealized gains (losses) on derivatives (net of tax effects of $(4), $(14), and $137)	(35)	(26)	255
Net unrealized gains (losses) on investments (net of tax effects of $936, $195, and $(210))	1,737	363	(390)
Translation adjustments and other (net of tax effects of $12, $(8), and $(165))	263	(16)	(306)
Other comprehensive income (loss)	1,965	321	(441)
Comprehensive income	$24,039	$22,184	$16,537

BALANCE SHEETS

(In millions)
June 30,	2014	2013
Assets
Current assets:
Cash and cash equivalents	$8,669	$3,804
Short-term investments (including securities loaned of $541 and $579)	77,040	73,218
Total cash, cash equivalents, and short-term investments	85,709	77,022
Accounts receivable, net of allowance for doubtful accounts of $301 and $336	19,544	17,486
Inventories	2,660	1,938
Deferred income taxes	1,941	1,632
Other	4,392	3,388
Total current assets	114,246	101,466
Property and equipment, net of accumulated depreciation of $14,793 and $12,513	13,011	9,991
Equity and other investments	14,597	10,844
Goodwill	20,127	14,655
Intangible assets, net	6,981	3,083
Other long-term assets	3,422	2,392
Total assets	$172,384	$142,431
Liabilities and stockholders equity
Current liabilities:
Accounts payable	$7,432	$4,828
Short-term debt	2,000	0
Current portion of long-term debt	0	2,999
Accrued compensation	4,797	4,117
Income taxes	782	592
Short-term unearned revenue	23,150	20,639
Securities lending payable	558	645
Other	6,906	3,597
Total current liabilities	45,625	37,417
Long-term debt	20,645	12,601
Long-term unearned revenue	2,008	1,760
Deferred income taxes	2,728	1,709
Other long-term liabilities	11,594	10,000
Total liabilities	82,600	63,487
Commitments and contingencies
Stockholders equity:
Common stock and paid-in capital shares authorized 24,000; outstanding 8,239 and 8,328	68,366	67,306
Retained earnings	17,710	9,895
Accumulated other comprehensive income	3,708	1,743
Total stockholders equity	89,784	78,944
Total liabilities and stockholders equity	$172,384	$142,431

11. Calculate the following leverage ratio that indicates the level of financing relationships of the company at the end of your assigned fiscal year. Show calculations. (Ch. 10)
a) Debt-to-Equity Ratio
12. What is the Gross Profit Percentage of the company in your assigned fiscal year? (gross profit / net sales or"revenue = gross profit %)
13. What is the income before tax of the company for your fiscal year? (Ch. 1)
14. What inventory cost-flow method is used to account for the cost of the inventory, if any? (Ch. 7)
15. What depreciation method is used for property, plant, and equipment, if any? (Ch. 8)
16. What is the balance of Allowance for Doubtful Accounts at the end of your assigned fiscal year, if any? (Ch. 6)