Question 1

A.) Assume that you are the lead banoer for the syndicate of banks that manage Microsoft Corporations line of credit. Your boss has asked that you report to him on the current state of Microsofts Liquidity. How would you descrige the liquidity of Microsoft in 2013?

B.) have there been recent changes in Microsofts liquidity? if so, have the changes been to improve the firms liquidity? Explain your observations.

Please answet all parts as this is one question, thank you!!

Cash and cash equivalents Short-term investments Net receivables Inventory Other current assets Total current assets 2013 9,779,000 13,331,000 15,833,000 914,000 3,307,000 43,164,000 2012 5,995,000 16,133,000 12,146,000 1,838,000 1,197,000 37,309,000 2011 7,546,000 27,336,000 11,742,000 1,427,000 2,746,000 50,797,000 Accounts payable Short-term/current long-term debt Other current liabilities Total current liabilities 11,279,000 0 17,193,000 28,472,000 5,623,000 2,672,000 14,351,000 22,646,000 9,439,000 0 13,409,000 22,848,000