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Microsoft expects sales to grow to $30,634M in Year 3. Use the financial statements below to calculate the additional funds needed (AFN) to support that
Microsoft expects sales to grow to $30,634M in Year 3. Use the financial statements below to calculate the additional funds needed (AFN) to support that growth. (Assume that cash, goodwill, and long-term debt will not grow in Year 3 and that Microsoft wont pay dividends.) Microsoft Corporation Income Statement and Balance Sheet As of December 31, Year 2 ($ millions) Year 2 Revenue 28,365 Cost of Revenue 5,191 SG&A (incl. R&D) 10,749 Depreciation Expense 820 EBIT 11,605 Interest Expense 92 Earnings Before Taxes 11,513 Income Taxes 3,684 Net Income 7,829 ASSETS Current Assets Year 2 Cash and Marketable Securities 38,652
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