1. Microsoft Corporation

Scenario: Financial Statement Analysis

Data: Microsoft Corporation's financial statements for the year include:

• Net sales: $150,000,000
• Cost of goods sold: $50,000,000
• Operating expenses: $30,000,000
• Interest expense: $5,000,000
• Income tax expense: $15,000,000

Requirements:

1. Prepare Microsoft Corporation's income statement and balance sheet.
2. Calculate Microsoft Corporation's gross profit margin and net profit margin.
3. Discuss the significance of gross profit margin and net profit margin in financial analysis.
4. Analyze Microsoft Corporation's liquidity and solvency ratios.
5. Evaluate Microsoft Corporation's profitability and financial performance.