Microsoft Financial Analysis Paper

811 Words 4 Pages
Financial statements are indispensable analytical tools for any business regardless of size. There are four primary statements (balance sheet, cash flow statement, retained earnings, and income statement) that are reviewed and analyzed on a regular basis that display an organization economic wealth and health.
Balance Sheet – will permit the viewer to determine the net worth of an organization via seeing: o Total assets, debt, and owner/stockholder’s equity
Income Statement – one will ascertain the both current and past performance of a company via displaying: o Gross income o Adjusted gross income (gross income – cost of goods sold) o Operating income (direct and indirect) o Income before and after taxes
Cash Flow Statement – is
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When a viewer is reviewing an income statement he or she (gross and net income along with operating expenses (direct and indirect). This paper will review and analyze these individual financial statements of Microsoft for the fiscal year end 2016 from both internal and external perspectives. Microsoft Corporation was founded in 1975. Since its conception, the company incorporated in 1981 and went public in 1986 (making the organization financial statement public). Furthermore, through its success, the corporation has become the world’s leading software, devices, and services organization (Microsoft, …show more content…
This balance is extremely important to labor unions. Labor unions review and analyze this instrument to observe both financial and profits for negotiating employees future contracts (Brubaker, (Pre-1986)). Labor union contracts usually include, but not limited to fair employee wages and benefits.
Microsoft Total Value of Assets Microsoft total value asset for year end 2016 is $193,694. Total asset value is vital to potential creditors because before the supplier or financial institution approve monetary funds, they will ascertain if the company have enough assets to cover debts. The organization must have enough asset to cover loan in case of default. When or if an organization default, the assets can easily covert to cash. Furthermore, in essence, creditors and banks will discover if a potential borrower have enough financial stability to afford new debt commitment (Kokemuller, 2016).
Microsoft Cash Flow

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