The following data were taken from Microsoft Corporations 2007 annual report. All dollar amounts are in millions.
Question:
Required
a. Compute Microsofts gross margin percentage for 2007 and 2006.
b. Compute Microsofts return on sales percentage for 2007 and 2006.
c. Based on the percentages computed in Requirements a and b, did Microsofts performance get better or worse from 2006 to 2007?
d. Compare Microsofts gross margin percentages and return on sales percentages to those of the other real-world companies discussed in this chapter and discuss whether or not it appears to have better-than-average financial performance ornot.
Transcribed Image Text:
Fiscal Years Ending June 30, 2007 June 30, 2006 Revenue Cost of Goods Sold Net Income $51,122 10,693 14,065 $44,282 7,650 12,599
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a Gross Margin Percentages First the gross margins must be calculated 2007 51122 10693 40429 ...View the full answer
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