(Part one of the question) 2. Income statements and balance sheets follow for Microsoft Corporation and Apple Inc. Refer to these financial statements to answer the requirements. MICROSOFT CORPORATION Income Statements For the years ended June 30 (in millions) 2016 2015 Revenue Product Service S61,502 23,818 85,320 $75,956 17,624 93,580 Total revenue Cost of revenue 17,880 14,900 32,780 52,540 11,988 14,697 4,563 1,110 21,410 11,628 33,038 60,542 12,046 15,713 4,611 10,011 Product Service and other Total cost of revenue Gross margin Research and development Sales and marketing General and administrative Impairment, integration, and restructuring Operating income Dividends and interest income Interest expense Other income (expense), net Income before taxes Provision for income taxes Net income 20,182 903 (1,243) 18,161 766 (781) 361 18,507 19,751 2,953 $16,798 6,314 $ 12,193 MICROSOFT CORPORATION Balance Sheet As of June 30 (in millions) 2016 2015 Current assets Cash and cash equivalents Short-term investments Accounts receivable, net Inventories Other current assets 106,730 18,277 2,251 5,892 139,660 $ 5,595 90,931 17,908 2,902 5,461 122,797 Total current assets