QUESTION 4 8 The attached pdf file shows the income statement and balance sheet from Microsoft's 2020 annual 10-K filing. Use the information for fiscal year 2020 (ended June 30, 2020) to answer the following questions. Please pay close attention to the format for submitting answers, such as the number of decimal places. If an answer is to be provided as a percentage, do not include the % sign in your answer. MSFT 2020 excerpt.pdf a. Microsoft reported gross margin of $96,937 (in millions) for FY 2020. What dollar amount of that gross margin (in millions) resulted from the sale of "Service and other"? b. Microsoft reported basic EPS of $5.82 for FY 2020. Show the numbers reported on p. 55 (the income statement) that can be used to calculate this EPS. Numerator = denominator = c. What dollar amount (in millions) did Microsoft's customers owe for past purchases at the end of FY 2020? d. What was Microsoft's current ratio at June 30, 2020? Round your answer to one decimal place, e.8., 4.2. e. What was Microsoft's profit margin percentage for FY 2020? Round your answer to one decimal place but omit the % sign. f. What was Microsoft's asset turnover ratio for FY 2020? Round your answer to two decimal places, e.8., 2.76. g. What was Microsoft's ROA (return on assets) for FY 2020? Round your answer to one decimal place but omit the % sign. PART II Item 8 ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA INCOME STATEMENTS (In millions, except per share amounts) Year Ended June 30, 2020 2019 2018 Revenue: Product Service and other $ 68,041 $ 66,069 $ 64,497 74,974 59,774 45,863 Total revenue 143,015 125,843 110,360 Cost of revenue: Product Service and other 16,017 30,061 16,273 26,637 15,420 22,933 Total cost of revenue 46,078 42,910 38,353 Gross margin Research and development Sales and marketing General and administrative 96,937 19,269 19,598 5,111 82,933 16,876 18,213 4,885 72,007 14,726 17,469 4,754 Operating income Other income, net 52,959 77 42,959 729 35,058 1,416 Income before income taxes Provision for income taxes 53,036 8,755 43,688 4,448 36,474 19,903 Net income $ 44,281 $ 39,240 $ 16,571 Earnings per share: Basic Diluted $ $ 5.82 $ 5.76 $ 5.11 $ 5.06 $ 2.15 2.13 Weighted average shares outstanding: Basic Diluted 7,610 7,683 7,673 7,753 7,700 7,794 Refer to accompanying notes. PART II Item 8 BALANCE SHEETS (In millions) 2020 2019 June 30, Assets Current assets: Cash and cash equivalents Short-term investments $ 13,576 $ 122,951 11,356 122,463 136,527 133,819 Total cash, cash equivalents, and short-term investments Accounts receivable, net of allowance for doubtful accounts of $788 and $411 Inventories Other current assets 32,011 1,895 11,482 29,524 2,063 10,146 181,915 175,552 Total current assets Property and equipment, net of accumulated depreciation of $43,197 and $35,330 Operating lease right-of-use assets Equity investments Goodwill Intangible assets, net Other long-term assets 44,151 8,753 2,965 43,351 7,038 13,138 36,477 7,379 2,649 42,026 7,750 14,723 Total assets $ 301,311 $ 286,556 $ Liabilities and stockholders' equity Current liabilities: Accounts payable Current portion of long-term debt Accrued compensation Short-term income taxes Short-term unearned revenue Other current liabilities 12,530 $ 3,749 7,874 2,130 36,000 10,027 9,382 5,516 6,830 5,665 32,676 9,351 Total current liabilities Long-term debt Long-term income taxes Long-term unearned revenue Deferred income taxes Operating lease liabilities Other long-term liabilities 72,310 59,578 29,432 3,180 204 7,671 10,632 69,420 66,662 29,612 4,530 233 6,188 7,581 Total liabilities 183,007 184,226 Commitments and contingencies Stockholders' equity: Common stock and paid-in capital - shares authorized 24,000; outstanding 7,571 and 7,643 Retained earnings Accumulated other comprehensive income (loss) 80,552 34,566 3,186 78,520 24,150 (340) Total stockholders' equity 118,304 102,330 Total liabilities and stockholders' equity $ 301,311 $ 286,556 Refer to accompanying notes
