PROBLEM 1 (35 POINTS) Income statements and balance sheets follow for Microsoft Corporation. Refer to statements to answer the requirements these financial Microsoft Corporation Income Statements Year ended June 30, (in millions) Revenue Cost of revenue Gross profit Research and development Sales and marketing General and administrative Goodwill impairment Total operating expenses Operating income 013 201 $77,849 20, 249 57 600 10,411 15,276 5,149 $73,723 17,530 56,193 9,811 13,857 4,569 6,193 34, 430 21,763 30,836 26,764 Other income Income before income taxes Provision for income taxes Net income 288 27,052 5,189 $21.863 504 22,267 5,289 $16,978 Microsoft Corporation Balance Sheets As of June 30 2013 2012 (S millions) 6,938 56,102 15,780 1.137 2,035 3,092 85,084 Cash and cash equivalents $ 3,804 73,218 17,486 1,938 1,632 3,388 Short-term investments Accounts receivable, net Inventories Deferred income taxes Other current assets Total current assets 101,466 Property plant and equipment, net Equity and other investments Goodwill Intangible assets, net 9,991 10,844 14,655 8,269 9,776 13,452 3,170 3,083 2,392 $142,431 Other long-term assets 1,520 Total assets $121,271 Table continued next page