Microsoft Corporation provided the following balance sheet information as of June 30, 2023: Total Assets: $15,000,000 Total
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Question:
- Microsoft Corporation provided the following balance sheet information as of June 30, 2023:
- Total Assets: $15,000,000
- Total Liabilities: $6,000,000
- Shareholders' Equity: $9,000,000
- Cash and Cash Equivalents: $3,000,000
- Accounts Receivable: $2,500,000
- Inventory: $2,000,000
- Property, Plant, and Equipment: $6,000,000
- Long-term Debt: $3,000,000
a. Calculate Microsoft Corporation's Current Ratio and Quick Ratio based on the provided data. b. Determine Microsoft Corporation's Debt-to-Equity Ratio. c. Analyze the composition of Microsoft Corporation's total assets and their significance for the company's operations. d. Evaluate Microsoft Corporation's financial leverage based on its long-term debt and shareholders' equity. e. Discuss how changes in Microsoft Corporation's inventory turnover ratio could impact its working capital management. f. Recommend strategies for Microsoft Corporation to optimize its capital structure based on the balance sheet analysis.
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