The following data were taken from Microsoft Corporations 2007 annual report. All dollar amounts are in millions.

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The following data were taken from Microsoft Corporation€™s 2007 annual report. All dollar amounts are in millions.

The following data were taken from Microsoft Corporation€™s 2007

Required
a. Compute Microsoft€™s gross margin percentage for 2007 and 2006.
b. Compute Microsoft€™s return on sales percentage for 2007 and 2006.
c. Based on the percentages computed in Requirements a and b, did Microsoft€™s performance get better or worse from 2006 to 2007?
d. Compare Microsoft€™s 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.

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Survey of Accounting

ISBN: 978-0073379555

2nd edition

Authors: Edmonds, old, Mcnair, Tsay

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