MICROSOFT ACTUALS CONSOLIDATED STATEMENTS OF INCOME - USD (S) shares in Millions, S in Millions 2017 2018 6/30/17 6/30/18 2019 6/30/19 2020 2021 6/30/20 6/30/21 Revenues: Total Revenues % of change 96,571 110,360 125,843 143,015 168,088 14.28% 14.03% 13.65% 17.53% % of Annual Revenue Costs of Sales Common Size % of change Gross Profit 34,261 38,353 42,910 46,078 $2,232 35.48% 34.75% 34.10% 32.22% 31.07% 11.94% 11.88% 7.38% 13.36% 62,310 72,007 82,933 96,937 115,856 Common Size 64.52% 65.25% 65.90% 67.78% 68.93% % of change 15.56% 15.17% 16.89% 19.52% Research and development 13,037 14,726 16,876 19,269 20,716 Common Size 13.50% 13.34% 13,41% 13.47% 12.32% % of change 12.96% 14.60% 14.18% 7.51% Sales and marketing 15,461 17,469 18,213 19,598 20,117 Common Size 16.01% 15.83% 14.47% 13.70% 11.97% % of change 12.99% 4.26% 7.60% 2.65% General and administrative 4,481 4,754 4,885 5,111 5,107 Common Size % of change 4.64% 4.31% 3.88% 3.57% 3.04% 6.09% 2.76% 4.63% -0.08% Restructuring 306 0 0 o 0 Common Size 0.32% 0.00% 0.00% 0.00% 0.00% % of change -100.00% 0.00% 0.00% 0.00% Total selling and administrative expense 33,285 36,949 39,974 43,978 45,940 Common Size 34.47% 33.48% 31.76% 30.75% 27.33% % of change 11.01% 8.19% 10.02% 4.46%