• Presented below is an excerpt ($ in millions) from the 2016 annual report to shareholders of Microsoft Corporation. Explain how the shareholder should interpret the difference between the net income and total comprehensive income for Microsoft in 2016.

Comprehensive Income:

Net income $16,798

Other comprehensive income (loss),

net of tax:

Net unrealized loss on derivatives (238)

Net unrealized loss on investments (228)

Translation adjustment and other (519)

Other comprehensive income (loss) (985)

Comprehensive income $15,813