Sign In
Not register? Register Now!
Essay Available:
Pages:
3 pages/β‰ˆ825 words
Sources:
3 Sources
Style:
APA
Subject:
Accounting, Finance, SPSS
Type:
Research Paper
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 16.85
Topic:

Analysis of the Financial Statements of Microsoft

Research Paper Instructions:

Write a research paper on the following:
Select a publicly traded company that is traded on U.S. exchange. Locate the annual report for at least the last three fiscal years.
Analyze the financial statements for the company and review for large movements in specific accounts from one year to the next. In addition, review the notes to the financial statements as these are an integral part of the financial reporting package. Evaluate the balance sheet to determine if there are large changes in the company’s assets, liabilities, or equity accounts. In addition, analyze the income statement and statement of cash flows.
At a minimum calculate the following ratios for a two-year period, the debt-to-equity ratio, current ratio, quick ratio, return on equity and net profit margin. For each ratio, explain the ratio tells you about the company.
Your paper will be evaluated according to the Writing Assignment Grading shown below. To maximize your grade, be sure to use the proper organization (intro, body, conclusion) and follow APA style. Your paper should have a title page and reference page, but you do not need an abstract for this assignment.
Grade
Homework Problems Grading Criteria
90-100%
Assigned exercises/problems are completed in full.
Work demonstrates effective application of the concepts/principles covered in the chapter.
Work thoroughly explains answers and calculations.
Solutions are calculated with no errors or insignificant errors.
80-89%
Assigned exercises/problems are completed in full or are significantly complete.
Work demonstrates effective application of most concepts/principles covered in the chapter.
Work thoroughly explains most answers and calculations.
Solutions are calculated with insignificant errors.
70-79%
Assigned exercises/problems are mostly complete.
Work demonstrates effective application of some concepts/principles covered in the chapter.
Work explains some answers and calculations.
Solutions are calculated with significant errors.
60-69%
Assigned exercises/problems are fairly complete.
Work demonstrates effective application of a few concepts/principles covered in the chapter.
Work explains a few answers and calculations.
Solutions are calculated with significant errors.
0-59%
Assigned exercises/problems are less than 50% complete.
Work does not demonstrate effective application of the concepts covered in the chapter.
Work submitted does not thoroughly explain answers and calculations.
Solutions are not calculated or are calculated with significant errors.

Research Paper Sample Content Preview:

Company Analysis, Microsoft
Student’s Name
Institutional Affiliation
Course
Instructor
Date
Company Analysis, Microsoft
This discussion will explore the three-year financial statements of Microsoft and carry out a horizontal analysis to determine any large movements, which includes the balance sheet to determine any large changes in assets, liabilities, or equity accounts. In addition, two-year financial ratios will be calculated, and an explanation of the same will be presented.
Analysis for Large Movements or Changes in the Financial Statement Items
The below analysis was carried out on the financial statements for the fiscal years 2021, 2020, and 2019, sourced from US Securities Exchange (2021), US Securities Exchange (2020), and US Securities Exchange (2019).
Income Statement
The income statement has a large movement in operating expenses which increased by 8% in 2019, 10% in 2020, and a lower increase of 4% in 2021, the latter resulting from Covid-19-related savings and bad debt expense reductions. The operating income had a constant growth of 23% in 2019 and 2020 but grew by 32% in 2021, the latest large movement resulting from higher gross profit and reduced operating expense. Other income was reduced by -49% in 2019 and -89% in 2020 but increased by 1440% in 2021, the large movement coming from the net recognized gains on investments and other gains. The tax provision was reduced by -78% in 2019 but increased by 97% in 2020 and 12% in 2021. The large movement preceding 2019 was in response to the recently issued regulations and TCJA.
Balance Sheet
Cash And Cash Equivalents reduced by -5% in 2019 and grew by 20% in 2020 and 5% in 2021 (due to the acquisition of ZeniMax Media Inc.). Short Term Investments had a relatively large reduction of -6% in 2021, used in facilitating liquidity. Accounts receivable had a large increase of 19% in 2021, and inventory was reduced in 2019 and 2020 but grew by 39% in 2021, all of which are primarily due to the increased revenues. Properties and equipment had a large increase of 35% in 2021 due to additions in the assets. Long Term Equity Investment grew by 42% in 2019, 12% in 2020, and 102% in 2021, as a result of increased net unrealized gains on investments still held. Other Long-term Assets grew by 98% in 2019, reduced by -11% in 2020, and increased by 15% in 2021 (due to the inclusion of the increased net long-term accounts receivable). Current debt increased by 38% in 2019, reduced by -32% in 2020, and increased by 115% in 2021 (as a result of exchanging portions of existing debt for longer-term maturities). Common Stock increased by 10% in 2019 and 3% in both 2020 and 2021, partly due to stock issues and repurchases.
Cash Flow Statement
Payments towards Other current assets were reduced by -60% in 2021 due to a decrease in the financing receivables. Purchases of Other long-term assets had large increases of 544% in 2019 and 234% in 2021 as a result of increased long-term financing items. Accounts payable increased by 1201% in 2020 primaril...
Updated on
Get the Whole Paper!
Not exactly what you need?
Do you need a custom essay? Order right now:
Order

πŸ‘€ Other Visitors are Viewing These APA Research Paper Samples:

HIRE A WRITER FROM $11.95 / PAGE
ORDER WITH 15% DISCOUNT!
Order Now