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You are calculating the accruals ratio for two leading technology companies, Microsoft Corporation and Alphabet Inc. (Google), for the fiscal year 2023. Requirements: Microsoft reported
You are calculating the accruals ratio for two leading technology companies, Microsoft Corporation and Alphabet Inc. (Google), for the fiscal year 2023.
Requirements:
- Microsoft reported net income of $30 billion and cash flow from operations of $35 billion for the fiscal year 2023. Alphabet reported net income of $25 billion and cash flow from operations of $30 billion during the same period.
- Calculate the accruals for both Microsoft and Alphabet.
- Calculate the accruals ratio for both Microsoft and Alphabet using the formula: Accruals Ratio = (Net Income - Cash Flow from Operations) / Total Assets.
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