You are given the following financial statements for Microsoft for the years 2000 to 2001. Microsoft's Balance Sheet - January 31, 2001 In Millions 2000 2001 Cash and equivalents $4,846 $3,922 Short-term investments $18,952 $27,678 Total cash and short-term investments $23,798 $31,600 Accounts receivable $3,250 $3,671 Inventory $1,708 $1,949 Other $1,552 $2,417 Total current assets $30,308 $39,637 Property, Plant and Equipment, Net $1,903 $2,309 Equity and other investments $17,726 $14,141 Other assets $2,213 $3,170 Total assets $52,150 $59,257 Accounts payable $1,083 $1,188 Accrued compensation $557 $742 Income taxes $558 $1,468 Unearned revenue $4,816 $5,614 Other liabilities $2,714 $2,120 Total current liabilities $9,755 $11,132 Deferred income taxes $1,027 $836 Common stock and paid-in capital $23,195 $28,390 Retained earnings, accumulated other comprehensive income of $1,527 and $587 $18,173 $18,899 Total stockholders' equity $41,368 $47,289 Total liabilities and stockholders' equity $52,150 $59,257

The income statement extract is given below: Microsoft Income statement extracts Year Ended June 30 Details 1999 2000 2001 Revenue $19,747 $22,956 $25,296 Cost of Goods Sold $2,814 $3,002 $3,455 Required:

c. Show a common sized income statement and balance sheet for the two years and comment on the trend of the financials. (10 marks) d. Project a 20% in the financials (everything grows at the same rate with sales which is projected to grow by 20% in the year 2002) (10 marks)