Documente Academic
Documente Profesional
Documente Cultură
Corp.
Apple,
Inc.
Financial
Analysis
Accounting
202
Julie
Lemmond
-
Professor
Presented
by:
Kristie
Linn
Michelle
Stupfel
Table
of
Contents
I.
Introduction
.......
3
A. History
of
Microsoft
Corp.
.....
3
B. History
of
Apple,
Inc.
.
4
II.
A. Liquidity ......
B. Efficiency .
C. Solvency ...
12
D. Profitability ....
14
17
III.
18
IV.
Bibliography .
19
V.
21
VI.
Appendix
22
22
23
24
25
26
27
3/12/15
Page 2
Introduction
Apple,
Inc.
and
Microsoft
Corp.
are
two
very
strong
companies
in
an
ever-expanding
computer
technologies
industry.
This
industry
is
an
anchor
to
modern
business
infrastructures
and
plays
a
vital
roll
in
education
and
personal
development.
Both
companies
strived
to
create
a
niche
in
a
flourishing
market;
each
became
pioneers
in
varying
sectors
of
computer
manufacturing
and
computer
software.
In
1975,
a
young
Bill
Gates
(19)
and
Paul
Allen
(22)
created
Microsoft
with
vision
of
personal
and
professional
computing
from
every
desktop
in
every
home.
Form
inception,
Microsoft
became
a
contender
in
program
development,
application
and
video
game
design,
and
has
become
a
leader
in
other
modern
digital
technologies.
In
1981,
the
first
MS-DOS
operating
system
was
written
for
the
International
Machines
Corp.
(IBM),
which
was
followed
by
the
Microsoft
mouse
in
1983,
allowing
users
the
freedom
to
point
and
click
vice
typing
command
instructions.
Also
in
1983,
Microsoft
went
public
after
the
release
of
the
first
of
many
Windows
programs,
creating
a
processing
and
computing
dynasty
of
sorts.
In
1995
Internet
Explorer
was
introduced
as
internet
connectivity
became
more
mainstream
and
2001
brought
the
first
Xbox.
Microsoft
works
hard
to
stay
ahead
of
its
competitors
by
using
forward-thinking
strategies
and
technologies
and
updating
their
consumer
programs
and
software
with
periodic
upgrades.
In
2014,
Microsoft
acquired
long-standing
business
partner,
Nokia,
a
Finnish
telecommunications
company,
to
better
compete
with
both
Apple
and
Android
mobile
phone
systems.
3/12/15
Page 3
Apple
was
established
in
April
1976
with
the
introduction
of
the
Apple
I
personal
computer
kit.
However,
creator
Steve
Jobs
and
Steve
Wozniak
incorporated
the
company
in
January
the
following
year
leading
to
the
release
of
the
Apple
II.
Apple,
Inc.
was
an
industry
leader
in
the
1980s
and
ruled
the
market
when
the
Macintosh
became
available
in
1984
and
the
portable
was
released
in
1989.
However,
Apple,
Inc.
saw
steep
decline
through
the
90s
as
production
costs
for
their
expensive
high-end
system
overshadowed
all
sales.
In
1994,
Apple,
Inc.
introduced
the
Power
Macintosh
that
became
its
mainstay
offering.
Apple,
Inc.
was
unable
to
maintain
pace
with
Microsoft,
Inc.,
however,
as
the
two
operating
systems
were
not
compatible
and
Microsofts
market
continued
to
expand
through
the
low
to
middle
range
customer.
Also,
Apple
was
plagued
with
an
antiquated
operating
system,
which
they
were
unable
to
update
organically.
In
1996
Apple,
Inc.
bought
the
software
development
company,
NeXT,
and
began
to
write
a
more
sophisticated
and
smooth
operating
system
called
Mac-compatible
Windows
program
in
1997,
conceivably
saved
the
company
from
certain
demise.
Apple,
Inc.
profits
climbed
out
of
the
late
90s
and
are
soaring
today
and
the
company
is
arguably
recognized
as
THE
industry
leader.
They
revolutionized
personal
computing
and
the
mobile
market
with
products
like
the
iMac,
iPhones,
iPods,
and
iPads.
Plus,
they
announced
the
release
of
the
Apple
Watch,
which
should
be
available
in
early
2015.
Apple,
Inc.
has
pioneered
a
very
successful
marketing
strategy
and
through
their
ever-
expanding
retail
and
online
stores
the
company
continues
to
grow
and
challenge
the
technologies
industry
with
creative
and
innovative
products.
3/12/15
Page 4
3/12/15
Page 5
Total
current
assets
for
Apple,
Inc.
were
$68,531
and
$73,286
for
2014
and
2013,
respectively.
The
total
current
liabilities
were
$63,448
for
2014
and
$43,648
for
2013.
The
current
ratios
for
these
years
were
1.08
for
2014
and
1.68
in
2013.
Although
both
years
are
sufficient
in
supporting
its
short-term
debt
with
its
current
assets,
2014s
current
ratio
fell
due
to
a
57%
decline
in
the
value
of
short-term
marketable
securities.
The
total
current
assets
for
Microsoft
Corp.
were
$114,246
and
$101,466
for
2014
and
2013,
respectively.
The
total
current
liabilities
were
$45,625
and
$37,417
for
2014
and
3/12/15
Page 6
2013,
respectively.
The
current
ratios
for
these
years
were
2.5
for
2014
and
2.71
for
2013.
Although
both
years
are
sufficient
in
supporting
its
short-term
debt
with
its
current
assets,
2014s
current
ratio
fell
due
an
additional
increase
of
6.8%
total
current
liabilities
from
2013
to
2014
over
total
current
assets.
Acid-Test
Ratio
The
acid-test
ratio,
also
known
as
the
quick
ratio,
is
the
measure
of
a
companys
ability
to
pay
its
short-term
debt
with
its
most
liquid
assets
(current
assets
less
inventories)
and
the
higher
the
ratio,
the
more
liquid
the
company
is.
To
find
the
quick
ratio,
the
formula
of
current
assets
less
inventories,
divided
by
current
liabilities
is
used.
Apples
inventories
values
for
2014
and
2013
were
$2,111
and
$1,764,
respectively.
Although
the
2014
quick
ratio
of
1.05
and
2013
of
1.64
show
that
the
company
was
liquid,
Apple
was
barely
above
the
minimum
threshold
of
1.0.
Microsoft
had
inventory
values
for
2014
of
$2,660
and
2013
of
$1,938.
These
values
delivered
quick
ratios
of
2.45
and
2.66,
respectively,
demonstrating
a
higher
amount
of
liquidity
in
the
company.
3/12/15
Page 7
With
a
value
of
1.0
or
more
preferred
for
the
current
asset
ratio
and
the
acid-test
ratio,
both
Apple,
Inc.
and
Microsoft
Corp.
show
liquidity
in
their
companies.
However,
Microsoft
Corp.
has
a
higher
value
in
both
ratios
and
is
a
more
attractive
investment.
Efficiency
Accounts
Receivables
Turnover
&
Days
Sales
Uncollected
The
accounts
receivable
turnover
is
used
to
measure
the
ability
to
collect
a
companys
accounts
receivables
and
turn
it
into
cash
in
a
timely
manner
during
the
year.
This
ratio
is
found
by
dividing
the
companys
net
sales
by
their
net
average
accounts
receivables.
A
higher
ratio
determines
the
amount
of
quality
customers
the
company
has
and
a
lower
ratio
represents
the
amount
of
old
accounts
receivables
that
are
maintained
on
the
companys
balance
sheet.
The
days
sales
uncollected
ratio
is
used
to
determine
the
liquidity
of
the
accounts
receivables
by
evaluating
how
many
days
it
takes
for
a
company
to
receive
payment
after
a
sale
has
been
made.
3/12/15
Page 8
Apples
total
net
sales
for
2014
were
$182,795
and
$170,910
for
2013,
a
6.5%
increase.
Apple
also
saw
a
24.9%
increase
in
accounts
receivable
with
$17,460
in
2014
and
$13,102
in
2013.
This
produced
an
11.96
in
2014
and
14.22
in
2013
accounts
receivable
turnover
for
the
company.
In
2014,
Apple
collected
customer
payments
on
accounts
receivable
every
34.86
days
compared
to
27.98
days
in
2013.
Even
though
2014
shows
a
high
receivable
turnover,
its
taking
longer
to
receive
payment
than
in
2013.
The
total
net
sales
for
Microsoft
for
2014
were
$86,833
and
$77,849
for
2013,
a
10.3%
increase.
Accounts
receivables
also
increased
by
10.5%
from
2013
to
2014
with
values
of
$19,544
in
2014
and
$17,486
in
2013.
These
values
produced
an
accounts
receivable
turnover
in
2014
of
4.44
and
4.45
in
2013.
The
days
sales
uncollected
in
2014
were
comparable
to
2013
with
82.15
days
compared
to
81.98.
Microsoft
was
steady
in
receivables
for
the
two
years.
While
both
companies
had
an
increase
in
net
sales
and
accounts
receivables
from
2013
to
2014,
Apples
accounts
receivable
turnover
was
much
higher
than
Microsofts,
which
indicates
that
Microsoft
holds
older
receivables
longer.
Additionally,
Microsoft
receives
payments
for
their
sales
in
twice
as
many
days
as
Apple.
Inventory
Turnover
&
Days
Sales
in
Inventory
The
inventory
turnover,
or
merchandise
turnover,
calculates
the
efficiency
of
inventory
management
by
measuring
the
number
of
times
inventory
turns
over
in
a
time
period.
This
ratio
can
be
found
by
dividing
the
companys
cost
of
goods
sold
by
the
average
inventory
3/12/15
Page 9
value.
This
ratio
is
important
for
a
company
as
it
specifies
the
amount
of
sales
that
are
needed
to
turn
inventory
into
cash
to
prevent
holding
costs.
The
days
sales
in
inventory
ratio
is
used
to
determine
the
liquidity
of
the
companys
inventory.
This
ratio
calculates
the
amount
of
days
it
takes
a
company
to
sell
its
inventory,
along
with
how
long
their
total
inventory
will
last.
In
2014,
Apple
turned
their
inventory
over
57.94
times
compared
to
83.45
times
in
2013.
This
shows
that
compared
to
2013,
Apple
decreased
their
turnover
by
30.5%
in
2014.
Apples
2014
consolidated
balance
sheet
depicts
an
ending
inventory
amount
of
$2,111
for
2014
and
$1,764
for
2013.
This,
along
with
the
inventory
turnover,
indicates
that
the
company
held
onto
more
inventory
in
2014
than
in
2013.
The
amount
of
days
that
inventory
was
uncollected
in
2014
was
comparable
to
2013
with
6.86
days
in
2014
compared
to
6.04
days
in
2013.
Microsoft
turned
their
inventory
over
11.72
times
compared
to
13.17
times
in
2013.
This
indicates
that
they
held
onto
11%
more
inventory
in
2014
than
the
previous
year.
The
2014
consolidated
balance
sheet
shows
ending
values
of
$2,660
in
2014
and
$1,938
in
2013,
therefore
supports
the
increase
in
the
amount
of
inventory
held.
In
2014,
Microsoft
was
collecting
sales
for
inventory
every
36.05
days,
which
slightly
increased
from
34.93
in
2013.
Though
Microsoft
holds
fewer
inventories
each
year,
Apple
is
collecting
inventory
sales
more
rapidly.
Ideally
that
the
faster
inventory
is
sold,
the
sooner
payments
can
be
received
for
the
sale.
However,
it
is
taking
Microsoft
over
5
times
longer
to
receive
3/12/15
Page 10
payment
than
Apple
for
the
amount
of
turnover
they
are
producing,
which
contributes
to
their
high
allowances
for
doubtful
accounts
that
they
have
allocated
on
their
balance
sheet.
Total
Asset
Turnover
Total
asset
turnover
reflects
the
efficiency
of
a
companys
ability
to
generate
sales
from
its
assets.
This
is
calculated
by
dividing
net
sales
by
average
total
assets.
A
higher
ratio
indicates
the
efficiency
of
the
company
by
the
use
of
their
assets.
The
total
asset
ratio
for
Apple
was
steady
for
2014
and
2013,
with
0.83
in
2014
and
0.89
in
2013.
This
ratio
indicates
that
in
2014
for
every
dollar
earned,
the
company
generated
$0.83
for
the
sale.
Microsoft
was
also
steady
between
the
two
years,
generating
a
0.55
turnover
in
2014
and
0.59
in
2013.
When
comparing
the
efficiency
of
the
companies,
Apple
generated
nearly
30%
more
in
their
asset
turnover
than
Microsoft.
This
is
a
strong
indicator
for
investors
of
how
efficient
Apple
is
using
its
assets
to
generate
revenue.
Solvency
Debt
Ratio
The
debt
ratio
measures
the
financial
leverage
of
a
company
by
assessing
the
percentage
of
total
debt
to
total
assets.
This
is
calculated
by
dividing
total
liabilities
by
total
assets.
A
lower
debt
ratio
signifies
a
low-risk
company
for
investors.
Apple
had
a
debt
ratio
of
0.52
in
2014
and
0.40
in
2013.
Total
liabilities
increased
by
30.6%,
which
is
a
result
of
a
large
increase
in
long-term
debt
in
2014.
3/12/15
Page 11
Microsofts
debt
ratio
held
steady
from
2013
to
2014,
carrying
ratios
of
0.45
in
2013
and
0.48
in
2014.
Total
assets
increased
at
a
steady
pace,
while
a
total
liabilities
increased
by
23%.
The
increase
in
total
liabilities
was
primarily
due
to
issuing
new
long-term
debt
that
matures
after
the
year
20191.
Equity
Ratio
The
equity
ratio
measures
the
amount
of
assets
that
are
financed
by
owners
equity.
This
ratio
is
calculated
by
dividing
total
equity
by
total
assets.
The
higher
the
ratio,
the
more
attractive
the
company
is
to
investors.
The
equity
ratio
for
Apple
in
2014
was
0.48
and
0.60
in
2013.
From
2013
to
2014,
total
shareholders
equity
decreased
by
9.7%
contributing
primarily
to
a
decrease
in
retained
earnings2
by
the
repurchase
of
its
common
stock.
Microsoft
had
a
consistent
equity
ratio
with
0.55
in
2013
and
0.52
in
2014.
The
companys
total
stockholders
equity
and
total
assets
had
a
steady
growth
between
the
two
years.
Debt-to-Equity
Ratio
The
debt-to-equity
ratio
determines
the
amount
of
the
companys
debt
and
equity
are
used
to
finance
the
company.
The
ratio
is
computed
by
dividing
the
total
liability
by
the
total
equity.
The
lower
the
ratio
is,
the
more
financially
stable
the
company
is.
In
addition,
the
closer
the
ratio
is
to
1.0,
the
closer
investors
and
creditors
are
to
having
an
equal
stake
in
the
company.
1
See
page
67
of
the
2014
Apple
Annual
Report
2
See
page
26
of
the
2014
Apple
Annual
Report
3/12/15
Page 12
Apples
2014
debt-to-equity
ratio
is
quite
high
compared
to
2013.
In
2013,
the
ratio
was
0.68
and
grew
to
1.08
in
2014.
As
noted
in
previous
ratios,
an
increase
in
long-term
debt
and
a
decrease
in
retained
earnings
are
major
contributors
to
the
37%
increase
in
the
ratio.
The
debt-to-equity
ratio
for
Microsoft
increased
by
12.5%
from
2013
to
2014.
The
ratio
in
2014
was
0.92,
bringing
the
company
closer
to
the
1.0
mark
from
0.80
in
2013.
As
noted
in
previous
ratios,
this
increase
is
primarily
due
to
an
increase
in
the
companys
long-term
debt.
Times
Interest
Earned
Times
interest
earned
is
a
ratio
that
indicates
the
companys
ability
to
meet
its
interest
payments
on
its
debts.
This
ratio
is
determined
by
the
dividing
the
companies
income
before
interest
expense
and
income
taxes
by
their
interest
expense.
In
2013,
Apple
was
able
to
pay
their
debt
369.79
times.
However,
due
to
an
increase
in
their
interest
expense,
the
company
was
only
able
to
pay
their
debts
140.28
times
in
2014.
The
increase
in
their
interest
expense
was
associated
with
the
movements
in
their
2014
foreign
exchange
rate3.
Microsoft
had
a
total
times
interest
earned
ratio
of
47.6
in
2014,
which
decreased
from
their
ability
to
pay
their
debt
64.06
times
during
2013.
Even
though
Apple
has
a
very
high
debt-to-equity
ratio,
the
company
is
able
to
pay
their
debts
more
often
than
Microsoft.
Apple
increased
their
liabilities
in
2014,
yet
this
increase
3/12/15
Page 13
is
consistent
to
the
increase
in
their
shareholders
equity,
which
makes
the
company
a
higher
interest
to
investors.
Profitability
Profit
Margin
Ratio
The
profit
margin
ratio
reflects
a
companys
ability
to
make
a
profit
based
on
their
sales.
To
obtain
the
profit
margin
ratio,
divide
the
net
income
by
the
net
sales.
Depending
on
the
industry,
evaluating
profit
margins
range.
Companies
use
this
ratio
internally
as
an
indicator
cost
control.
Apples
profit
margin
was
27.1%
in
2013
and
21.6%
in
2014,
while
Microsofts
ratio
was
a
bit
higher
with
28.1%
and
25.45%
in
2013
and
2014,
respectively.
These
percentages
show
that
in
2014
Microsoft
earned
$0.25
cents
in
net
income
to
every
dollar
sold,
while
Apple
was
profiting
approximately
$0.04
per
dollar
less.
Gross
Margin
Ratio
The
gross
margin
ratio,
also
known
as
the
gross
profit
ratio,
is
the
proportion
of
every
dollar
in
revenue
a
company
earns
as
gross
profit.
The
ratio
is
determined
by
dividing
net
3/12/15
Page 14
sales
less
the
cost
of
goods
sold
by
the
net
sales.
This
ratio
is
also
an
internal
indicator
for
managers
in
a
company
to
examine
their
over-head
costs
closely.
Microsofts
gross
margin
superseded
Apple
by
nearly
50%
between
the
two
years.
In
2014
Microsoft
had
a
gross
margin
of
69%
and
74%
in
2013,
while
Apple
had
38.6%
in
2014
and
37.6%
in
2013.
As
noted
in
the
profit
margin
ratio,
gross
margins
ratios
can
vary
depending
on
the
industry.
This
ratio
can
also
vary
within
the
industry
depending
on
the
companys
inventory
accounting,
such
as
LIFO
versus
FIFO.
Return
on
Total
Assets
The
return
on
total
assets
shows
how
effect
a
company
is
using
assets
to
generate
a
profit.
This
ratio
is
found
by
dividing
net
income
by
the
average
total
assets.
Apples
return
on
total
assets
were
slightly
higher
than
Microsoft
with
19.3%
in
2013
and
18%
in
2014.
Microsoft
had
a
return
of
16.6%
in
2013
and
14%
in
2014.
This
analysis
shows
that
Apples
return
on
assets
was
due
to
a
slightly
higher
profit
margin.
Return
on
Common
Stockholders
Equity
The
return
on
common
stockholders
equity
shows
how
much
net
income
a
company
generates
from
the
equity
of
the
stockholders.
This
may
be
the
most
important
ratio
for
the
companys
stockholders
as
it
reveals
how
much
income
the
company
is
earning
based
off
the
investments
of
the
stockholders.
This
ratio
is
found
by
dividing
net
income
minus
the
preferred
dividends
by
the
average
common
stockholders
equity.
In
2014,
Apple
had
a
7.4%
higher
return
on
equity
than
Microsoft
with
a
value
of
33.6%
compared
to
26.2%.
In
2013,
the
ratios
for
the
year
were
fairly
even
with
30.6%
for
Apple
and
30.1%
for
Microsoft.
3/12/15
Page 15
Book
Value
per
Common
Share
The
book
value
per
common
share
compares
the
stockholders
equity
to
the
amount
of
outstanding
shares.
This
can
be
calculated
by
dividing
the
shareholders
equity
applicable
to
common
shares
by
the
number
of
outstanding
common
shares.
This
is
an
important
value
should
a
company
be
forced
to
liquidate
and
have
to
payout
their
shareholders.
The
ratio
fins
the
value
of
the
companys
stock
and
is
used
mainly
by
investors
to
evaluate
the
price
of
the
companys
stock.
Apples
book
value
for
2014
shows
a
common
share
of
$19.02
and
$19.63
for
2013.
These
values
are
a
bit
higher
than
that
of
Microsoft
of
$10.90
per
common
share
in
2014
and
$9.48
in
2013.
Basic
Earnings
per
Share
The
basic
earnings
per
share
is
a
measure
of
a
companys
profit
allocated
per
share
of
stock.
This
is
figured
by
dividing
the
companys
net
income
less
preferred
stock
by
the
weighted-average
common
shares
outstanding.
3/12/15
Page 16
Apple
continues
to
show
a
larger
value
of
the
basic
earnings
per
share
with
$6.49
in
2014
compared
to
Microsofts
$2.66,
along
with
the
2013
values
of
$5.72
for
Apple
and
$2.61
for
Microsoft.
Market
Prospects
Price-Earnings
Ratio
&
Dividend
Yield
The
price-earnings
ratio
is
used
as
an
indicator
for
future
growth
and
risk
of
a
companys
share
price
to
its
per-share
earning
and
is
computed
by
dividing
the
market
price
per
common
share
by
the
earnings
per
share.
The
dividend
yield
is
the
amount
of
cash
dividends
that
are
distributed
to
shareholders
relative
to
the
market
value.
For
both
ratios,
Apple
and
Microsoft
have
been
pretty
comparable
to
each
other.
The
price-
earnings
for
Apple
in
2014
were
15.5
and
12.06
in
20134
compared
to
Microsoft
of
15.68
in
2014
and
13.23
in
2013.
Apples
dividend
yield
was
slightly
lower
in
2014
with
1.81%
than
2013
of
2.38%,
which
were
both
marginally
lower
than
that
of
Microsoft
of
2.69%
in
2014
and
2.66%
in
2013.
4 Seven-for-one stock-split on June 6, 2014 See page 21 of the 2014 Apple Annual Report
3/12/15
Page 17
Looking
at
the
profitability
ratios,
Apple,
Inc.
is
stronger
with
their
stock
earnings
per
share
as
well
as
their
return
on
common
stockholders
equity
than
Microsoft
Inc.
They
have
also
shown
strong
stock
prices
over
the
past
5
years.
Apples
basic
earnings
per
share
were
higher
than
Microsoft
by
$3.83
in
2014
and
$3.11
in
2013
and
also
show
a
higher
book
value
per
common
share
by
$8.12
in
2014
and
$10.15
in
2013.
Apple
has
shown
they
are
more
efficient
in
managing
their
assets
to
produce
a
profit
in
their
return
on
total
assets.
Although
Microsoft
shows
more
liquidity,
their
accounts
remain
uncollected
longer
and
their
inventory
sits
longer
than
Apples.
Its
hard
to
predict
the
future,
however,
if
Apple
continues
to
produce
such
cutting
edge
and
avant-garde
products,
their
stock
will
continue
to
prosper
and
the
new
Apple
Watch
may
be
the
pendulum
to
carry
them
into
the
next
chapter.
Microsoft
has
been
a
household
name
for
many
years,
the
majority
of
long-term
Microsoft
users
will
continue
to
use
the
system
theyre
familiar
with
and
continue
to
upgrade
when
upgrades
are
available
or
purchase
the
latest
installment
with
a
new
computer.
However,
they
are
liable
to
fall
behind
should
they
not
find
a
way
to
compete
with
Apples
apparent
technologically
superior
product
line.
3/12/15
Page 18
Bibliography
1. Apple,
Inc.
(2014).
Form
10-K
2014.
Retrieved
from
SEC
APPLE
website
http://investor.apple.com/sec
2. Apple
Inc.
(2013).
Form
10-K
2013.
Retrieved
from
SEC
APPLE
website
http://investor.apple.com/sec
3. Microsoft
Corporation.
(2014).
Annual
report
2014
Retrieved
from
http://www.microsoft.com/investor/AnnualReports/default.aspx
4. Microsoft
Corporation.
(2013).
Annual
report
2013.
Retrieved
from
http://www.microsoft.com/investor/AnnualReports/default.aspx
5. "GuruFocus
Premium
Membership."
Value
Investing.
N.p.,
n.d.
Web.
4
Mar.
2015.
<http://www.gurufocus.com/>.
6. "Microsoft
Corp."
MSFT
Historical
Stock
Quotes.
N.p.,
n.d.
Web.
4
Mar.
2015.
<http://www.marketwatch.com/investing/stock/msft/historical>.
7. "Apple
Inc."
AAPL
Historical
Stock
Quotes.
N.p.,
n.d.
Web.
5
Mar.
2015.
<http://www.marketwatch.com/investing/stock/aapl/historical>.
8. "Microsoft
Corporation
Historical
Stock
Prices."
Microsoft
Corporation
(MSFT)
Historical
Prices
&
Data.
N.p.,
n.d.
Web.
4
Mar.
2015.
<http://www.nasdaq.com/symbol/msft/historical>.
9. "Apple
Inc.
Historical
Stock
Prices."
Apple
Inc.
(AAPL)
Historical
Prices
&
Data.
N.p.,
n.d.
Web.
4
Mar.
2015.
<http://www.nasdaq.com/symbol/aapl/historical>.
10. U.S.
Census
Bureau,
Washington,
DC
20233
Quarterly
Financial
Report
for
Manufacturing,
Mining,
Trade,
and
Selected
Service
Industries.
Third
Quarter
2014,
Series
QFR/14-Q3
3/12/15
Page 19
11. "History
of
Apple
Computers."
History
of
Apple
Computers.
N.p.,
n.d.
Web.
9
Mar.
2015.
<http://web.bryant.edu/~ehu/h364proj/fall_97/hill/happle.html>.
12. "A
History
of
Windows
-
Microsoft
Windows."
Windows.microsoft.com.
N.p.,
n.d.
Web.
8
Mar.
2015.
<http://windows.microsoft.com/en-
us/windows/history#T1=era0>.
3/12/15
Page 20
Financial-Statement-Analysis-Ratios
Prepared%for:
Apple,%Inc.%&%Microsoft%Corp.
2013%H%2014
Apple,-Inc.
2014
2013
Microsoft-Corp
2014
2013
Liquidity-and-Efficiency-Ratios
Current%Ratio......
AcidHTest%Ratio......
Accounts%Receivable%Turnover.
Inventory%Turnover.....
Days'%Sales%Uncollected%(days).
Days'%Sales%in%Inventory%(days)....
Total%Asset%Turnover.....
1.08
1.05
11.96
57.94
34.86
6.86
0.83
1.68
1.64
14.22
83.45
27.98
6.04
0.89
2.50
2.45
4.44
11.72
82.15
36.05
0.55
2.71
2.66
4.45
13.17
81.98
34.93
0.59
0.52
0.48
1.08
140.28
0.40
0.60
0.68
369.79
0.48
0.52
0.92
47.60
0.45
0.55
0.80
64.06
21.6%
38.6%
18.0%
33.6%
19.02
6.49
21.7%
37.6%
19.3%
30.6%
19.63
5.72
25.4%
69.0%
14.0%
26.2%
10.90
2.66
28.1%
74.0%
16.6%
30.1%
9.48
2.61
15.50
1.81%
12.06
2.38%
15.68
2.69%
13.23
2.66%
Solvency-Ratios
Debt%Ratio.....
Equity%Ratio...
DebtHtoHEquity%Ratio...
Times%Interest%Earned%(days).
Profitability-Ratios
Profit%Margin%Ratio
Gross%Margin%Ratio..
Return%on%Total%Assets
Return%on%Common%Stockholders'%Equity.
Book%Value%Per%Common%Share..
Basic%Earnings%Per%Share..
Market-Prospects
PriceHEarnings%Ratio....
Dividend%Yield.....
3/12/15
Page
21
Team%Members:
Kristie%Linn,%Michelle%Stupfel,%Jeffrey%Crandall
Appendix
Apple(Inc.
Consolidated$Statement$of$Income$S$ThreeSYear$Comparison
(In$millions,$except$number$of$shares$which$are$reflected$in$thousands$and$per$share$amounts)
Net$Sales
Cost$of$Sales
Gross$Margin
Operating$expenses:
Research$and$development
Selling,$general$and$administrative
Total$operating$expenses
Operating$income
Other$income(expense),$net
Income$before$provision$for$income$taxes
Provision$for$income$taxes
Net$income
Earning$per$share:
Basic
Diluted
Shares$used$in$computing$earnings$per$share:
Basic
Diluted
Cash$dividends$declared$per$common$share
September(27,
2014
Years(Ended
September(28,
2013
September(29,
2012
$$$$$$$$$$$$$$182,795
$$$$$$$$$$$$$$$$112,258
$$$$$$$$$$$$$$$$$$70,537
$$$$$$$$$$$$$$170,910
$$$$$$$$$$$$$$$$106,606
$$$$$$$$$$$$$$$$$$64,304
$$$$$$$$$$$$$$156,508
$$$$$$$$$$$$$$$$$$87,846
$$$$$$$$$$$$$$$$$$68,662
$$$$$$$$$$$$$$$$$$$$6,041
$$$$$$$$$$$$$$$$$$11,993
$$$$$$$$$$$$$$$$$$18,034
$$$$$$$$$$$$$$$$$$52,503
$$$$$$$$$$$$$$$$$$$$$$$$980
$$$$$$$$$$$$$$$$$$53,483
$$$$$$$$$$$$$$$$$$13,973
$$$$$$$$$$$$$$$$$39,510
$$$$$$$$$$$$$$$$$$$$4,475
$$$$$$$$$$$$$$$$$$10,830
$$$$$$$$$$$$$$$$$$15,305
$$$$$$$$$$$$$$$$$$48,999
$$$$$$$$$$$$$$$$$$$$1,156
$$$$$$$$$$$$$$$$$$50,155
$$$$$$$$$$$$$$$$$$13,118
$$$$$$$$$$$$$$$$$37,037
$$$$$$$$$$$$$$$$$$$$3,381
$$$$$$$$$$$$$$$$$$10,040
$$$$$$$$$$$$$$$$$$13,421
$$$$$$$$$$$$$$$$$$55,241
$$$$$$$$$$$$$$$$$$$$$$$$522
$$$$$$$$$$$$$$$$$$55,763
$$$$$$$$$$$$$$$$$$14,030
$$$$$$$$$$$$$$$$$41,733
$$$$$$$$$$$$$$$$$$$$$6.49
$$$$$$$$$$$$$$$$$$$$$6.45
$$$$$$$$$$$$$$$$$$$$$5.72
$$$$$$$$$$$$$$$$$$$$$5.68
$$$$$$$$$$$$$$$$$$$$$6.38
$$$$$$$$$$$$$$$$$$$$$6.31
$$$$$$$$$$$$6,085,572
$$$$$$$$$$$$6,122,663
$$$$$$$$$$$$$$$$$$$$$1.82
$$$$$$$$$$$$6,477,320
$$$$$$$$$$$$6,521,634
$$$$$$$$$$$$$$$$$$$$$1.64
$$$$$$$$$$$$6,543,726
$$$$$$$$$$$$6,617,483
$$$$$$$$$$$$$$$$$$$$$0.38
3/12/15
Page 22
Apple(Inc.
Consolidated+Balance+Sheet+B+ThreeBYear+Comparison
(In+millions,+except+number+of+shares+which+are+reflected+in+thousands+and+per+value)
September(27,
2014
Years(Ended
September(28,
2013
September(29,
2012
$+++++++++++++++++++++13,844
++++++++++++++++++++++++11,233
$+++++++++++++++++++++14,259
++++++++++++++++++++++++26,287
$+++++++++++++++++++10,746
++++++++++++++++++++++18,383
++++++++++++++++++++++++17,460
++++++++++++++++++++++++++2,111
++++++++++++++++++++++++++4,316
++++++++++++++++++++++++++9,759
++++++++++++++++++++++++++9,806
++++++++++++++++++++++++68,531
++++++++++++++++++++++++13,102
++++++++++++++++++++++++++1,764
++++++++++++++++++++++++++3,453
++++++++++++++++++++++++++7,539
++++++++++++++++++++++++++6,882
++++++++++++++++++++++++73,286
++++++++++++++++++++++10,930
+++++++++++++++++++++++++++791
++++++++++++++++++++++++2,583
++++++++++++++++++++++++7,762
++++++++++++++++++++++++6,458
++++++++++++++++++++++57,653
+++++++++++++++++++++130,162
++++++++++++++++++++++++20,624
++++++++++++++++++++++++++4,616
++++++++++++++++++++++++++4,142
++++++++++++++++++++++++++3,764
$+++++++++++++++++++231,839
+++++++++++++++++++++106,215
++++++++++++++++++++++++16,597
++++++++++++++++++++++++++1,577
++++++++++++++++++++++++++4,179
++++++++++++++++++++++++++5,146
$+++++++++++++++++++207,000
++++++++++++++++++++++92,122
++++++++++++++++++++++15,452
++++++++++++++++++++++++1,135
++++++++++++++++++++++++4,224
++++++++++++++++++++++++5,478
$+++++++++++++++++176,064
Current+Liabilities:
Accounts+payable
Accrued+expenses
Deferred+revenue
Commercial+paper
Total+current+liabilities
$+++++++++++++++++++++30,196
++++++++++++++++++++++++18,453
++++++++++++++++++++++++++8,491
++++++++++++++++++++++++++6,308
++++++++++++++++++++++++63,448
$+++++++++++++++++++++22,367
++++++++++++++++++++++++13,856
++++++++++++++++++++++++++7,435
++++++++++++++++++++++++++++++B
++++++++++++++++++++++++43,658
++++++++++++++++++++++21,175
++++++++++++++++++++++11,414
++++++++++++++++++++++++5,953
++++++++++++++++++++++++++++B
++++++++++++++++++++++38,542
Deferred+revenue+B+nonBcurrent
LongBterm+debt
Other+nonBcurrent+liabilities
Total+liabilities
++++++++++++++++++++++++++3,031
++++++++++++++++++++++++28,987
++++++++++++++++++++++++24,826
+++++++++++++++++++++120,292
++++++++++++++++++++++++++2,625
++++++++++++++++++++++++16,960
++++++++++++++++++++++++20,208
++++++++++++++++++++++++83,451
++++++++++++++++++++++++2,648
++++++++++++++++++++++++++++B
++++++++++++++++++++++16,664
++++++++++++++++++++++57,854
++++++++++++++++++++++++23,313
++++++++++++++++++++++++87,152
++++++++++++++++++++++++++1,082
+++++++++++++++++++++111,547
$+++++++++++++++++++231,839
++++++++++++++++++++++++19,764
+++++++++++++++++++++104,256
B+++++++++++++++++++++++++++++471
+++++++++++++++++++++123,549
$+++++++++++++++++++207,000
++++++++++++++++++++++16,422
+++++++++++++++++++101,289
+++++++++++++++++++++++++++499
+++++++++++++++++++118,210
$+++++++++++++++++176,064
ASSETS
Current+Assets
Cash+and+cash+equivalents
ShortBterm+marketable+securities
Accounts+receivable,+less+allowances+of
+++++$86+and+$99,+respectively
Inventories
Deferred+tax+assets
Vendor+nonBtrade+receivables
Other+current+assets
Total+current+assets
LongBterm+marketable+securities
Property,+plant+and+equipment,+net
Goodwill
Acquired+intabgible+assets,+net
Other+assets
Total+assets
LIABILITIES+AND+SHAREHOLDERS'+EQUITY
Commitments+and+contingencies
Shareholder's+equity:
Common+stock+and+additional+paidBin+capital,+
$.00001+per+value;+12,600,000+shares+
authorized;+5,866,161+and+6,294,494+
shares+issued+and+outstanding,+respectively
Retained+earnings
Accumulated+other+comprehensive+income/(loss)
Total+shareholders'+equity
Total+liabilities+and+shareholders'+equity
3/12/15
Page 23
Apple(Inc.
Consolidated%Statement%of%Cash%Flow
(In%millions)
Twelve(Months(Ended
September(27,
2014
September(28,
2013
September(29,
2012
$%%%%%%%%%%%%%%%%%%14,259
$%%%%%%%%%%%%%%%%%%10,746
%%%%%%%%%%%%%%%%%%%%%%9,815
%%%%%%%%%%%%%%%%%%%%39,510
%%%%%%%%%%%%%%%%%%%%37,037
%%%%%%%%%%%%%%%%%%%%41,733
%%%%%%%%%%%%%%%%%%%%%%7,946
%%%%%%%%%%%%%%%%%%%%%%2,863
%%%%%%%%%%%%%%%%%%%%%%2,347
%%%%%%%%%%%%%%%%%%%%%%6,757
%%%%%%%%%%%%%%%%%%%%%%2,253
%%%%%%%%%%%%%%%%%%%%%%1,141
%%%%%%%%%%%%%%%%%%%%%%3,277
%%%%%%%%%%%%%%%%%%%%%%1,740
%%%%%%%%%%%%%%%%%%%%%%4,405
L%%%%%%%%%%%%%%%%%%%%%%4,232
L%%%%%%%%%%%%%%%%%%%%%%%%%%%%76
%%%%%%%%%%%%%%%%%%%%%%2,220
%%%%%%%%%%%%%%%%%%%%%%%%%%167
%%%%%%%%%%%%%%%%%%%%%%5,938
%%%%%%%%%%%%%%%%%%%%%%1,460
%%%%%%%%%%%%%%%%%%%%%%6,010
%%%%%%%%%%%%%%%%%%%%59,713
L%%%%%%%%%%%%%%%%%%%%%%2,172
L%%%%%%%%%%%%%%%%%%%%%%%%%%973
%%%%%%%%%%%%%%%%%%%%%%%%%%223
%%%%%%%%%%%%%%%%%%%%%%1,080
%%%%%%%%%%%%%%%%%%%%%%2,340
%%%%%%%%%%%%%%%%%%%%%%1,459
%%%%%%%%%%%%%%%%%%%%%%4,521
%%%%%%%%%%%%%%%%%%%%53,666
L%%%%%%%%%%%%%%%%%%%%%%5,551
L%%%%%%%%%%%%%%%%%%%%%%%%%%%%15
L%%%%%%%%%%%%%%%%%%%%%%1,414
L%%%%%%%%%%%%%%%%%%%%%%3,162
%%%%%%%%%%%%%%%%%%%%%%4,467
%%%%%%%%%%%%%%%%%%%%%%2,824
%%%%%%%%%%%%%%%%%%%%%%2,552
%%%%%%%%%%%%%%%%%%%%50,856
Investing%activities:
Purchase%of%marketable%securities
Proceeds%from%maturities%of%marketable%securities
Proceeds%from%sales%of%marketable%securities
Payments%made%in%connection%with%business%acquisitions,%net
Payments%for%acquisition%of%property,%plant%and%equipment
Payments%for%acquisition%of%intangible%assets
Other
Cash%used%in%investing%activities
L%%%%%%%%%%%%%%%%%%217,128
%%%%%%%%%%%%%%%%%%%%18,810
%%%%%%%%%%%%%%%%%%189,301
L%%%%%%%%%%%%%%%%%%%%%%3,765
L%%%%%%%%%%%%%%%%%%%%%%9,571
L%%%%%%%%%%%%%%%%%%%%%%%%%%242
%%%%%%%%%%%%%%%%%%%%%%%%%%%%16
L%%%%%%%%%%%%%%%%%%%%22,579
L%%%%%%%%%%%%%%%%%%148,489
%%%%%%%%%%%%%%%%%%%%20,317
%%%%%%%%%%%%%%%%%%104,130
L%%%%%%%%%%%%%%%%%%%%%%%%%%496
L%%%%%%%%%%%%%%%%%%%%%%8,165
L%%%%%%%%%%%%%%%%%%%%%%%%%%911
L%%%%%%%%%%%%%%%%%%%%%%%%%%160
L%%%%%%%%%%%%%%%%%%%%33,774
L%%%%%%%%%%%%%%%%%%151,232
%%%%%%%%%%%%%%%%%%%%13,035
%%%%%%%%%%%%%%%%%%%%99,770
L%%%%%%%%%%%%%%%%%%%%%%%%%%350
L%%%%%%%%%%%%%%%%%%%%%%8,295
L%%%%%%%%%%%%%%%%%%%%%%1,107
L%%%%%%%%%%%%%%%%%%%%%%%%%%%%48
L%%%%%%%%%%%%%%%%%%%%48,227
Financing%activities:
Proceeds%from%issuance%of%common%stock
Excess%tax%benefits%from%equity%awards
Taxes%paid%related%to%net%share%settlement%of%equity%award
Dividends%and%dividend%equivalents%paid
Repurchase%of%common%stock
Proceeds%from%issuance%of%longLterm%debt,%net
Proceeds%from%issuance%of%commercial%paper,%net
Cash%used%in%financing%activities
%%%%%%%%%%%%%%%%%%%%%%%%%%730
%%%%%%%%%%%%%%%%%%%%%%%%%%739
L%%%%%%%%%%%%%%%%%%%%%%1,158
L%%%%%%%%%%%%%%%%%%%%11,126
L%%%%%%%%%%%%%%%%%%%%45,000
%%%%%%%%%%%%%%%%%%%%11,960
%%%%%%%%%%%%%%%%%%%%%%6,306
L%%%%%%%%%%%%%%%%%%%%37,549
%%%%%%%%%%%%%%%%%%%%%%%%%%530
%%%%%%%%%%%%%%%%%%%%%%%%%%701
L%%%%%%%%%%%%%%%%%%%%%%1,082
L%%%%%%%%%%%%%%%%%%%%10,564
L%%%%%%%%%%%%%%%%%%%%22,860
%%%%%%%%%%%%%%%%%%%%16,896
%%%%%%%%%%%%%%%%%%%%%%%%%%%L
L%%%%%%%%%%%%%%%%%%%%16,379
%%%%%%%%%%%%%%%%%%%%%%%%%%665
%%%%%%%%%%%%%%%%%%%%%%1,351
L%%%%%%%%%%%%%%%%%%%%%%1,226
L%%%%%%%%%%%%%%%%%%%%%%2,488
%%%%%%%%%%%%%%%%%%%%%%%%%%%L
%%%%%%%%%%%%%%%%%%%%%%%%%%%L
%%%%%%%%%%%%%%%%%%%%%%%%%%%L
%%%%%%%%%%%%%%%%%%%%%%1,698
Increase/(decrease)%in%cash%and%cash%equivalents
Cash%and%cash%equivalents,%end%of%the%year
L%%%%%%%%%%%%%%%%%%%%%%%%%%415
$%%%%%%%%%%%%%%%%%%13,844
%%%%%%%%%%%%%%%%%%%%%%3,513
$%%%%%%%%%%%%%%%%%%14,259
%%%%%%%%%%%%%%%%%%%%%%%%%%931
%%%%%%%%%%%%%%%%%%%%10,746
$%%%%%%%%%%%%%%%%%%10,026
$%%%%%%%%%%%%%%%%%%%%%%%339
$%%%%%%%%%%%%%%%%%%%%9,128
$%%%%%%%%%%%%%%%%%%%%%%%%L
%%%%%%%%%%%%%%%%%%%%%%7,682
%%%%%%%%%%%%%%%%%%%%%%%%%%%L
Cash%and%cash%equivalents,%beginning%of%the%year
Opearting%activities:
Net%income
Adjustments%to%reconcile%net%income%to%cash%generated%by%
%%%%operating%activities:
Depreciation%and%amortization
ShareLbased%compensation%expense
Deferred%income%tax%expense
Changes%in%operating%assets%and%liabilities:
Accounts%receivable,%net
Inventories
Vendor%nonLtrade%recceivables
Other%current%and%nonLcurrent%assets
Accounts%payable
Deferred%revenue
Other%current%and%nonLcurrent%liabilities
Cash%generated%by%operating%activities
Supplemental%cash%flow%disclosure:
Cash%paid%for%income%taxes,%net
Cash%paid%for%interest
3/12/15
Page 24
Microsoft(Corp.
Statement+of+Income+H+ThreeHYear+Comparison
(In+millions,+except+per+share+amounts)
Revenue
Cost+of+revenue
Gross+margin
Operating+expense
Research+and+development
Sales+and+marketing
General+and+administrative
Goodwill+impairment
Integration+and+restructuring
Total+operating+expense
Operation+income
Other+income,+net
Income+before+income+taxes
Provisions+for+income+taxes
Net+income
Earnings+per+share:
Basic
Diluted
Weighted+average+shares+outstanding
Basic
Diluted
Cash+dividends+declared+per+common+share
September(27,
2014
Years(Ended
September(28,
2013
September(29,
2012
$+++++++++++++++++86,833
+++++++++++++++++++26,934
+++++++++++++++++++59,899
$+++++++++++++++++77,849
+++++++++++++++++++20,249
+++++++++++++++++++57,600
$+++++++++++++++++73,723
+++++++++++++++++++17,530
+++++++++++++++++++56,193
+++++++++++++++++++11,381
+++++++++++++++++++15,811
+++++++++++++++++++++4,821
++++++++++++++++++++++++++H
+++++++++++++++++++++++++127
+++++++++++++++++++32,140
+++++++++++++++++++27,759
+++++++++++++++++++++++++++61
+++++++++++++++++++27,820
+++++++++++++++++++++5,746
$+++++++++++++++++22,074
+++++++++++++++++++10,411
+++++++++++++++++++15,276
+++++++++++++++++++++5,149
++++++++++++++++++++++++++H
++++++++++++++++++++++++++H
+++++++++++++++++++30,836
+++++++++++++++++++26,764
+++++++++++++++++++++++++288
+++++++++++++++++++27,052
+++++++++++++++++++++5,189
$+++++++++++++++++21,863
+++++++++++++++++++++9,811
+++++++++++++++++++13,857
+++++++++++++++++++++4,569
+++++++++++++++++++++6,193
++++++++++++++++++++++++++H
+++++++++++++++++++34,430
+++++++++++++++++++21,763
+++++++++++++++++++++++++504
+++++++++++++++++++22,267
+++++++++++++++++++++5,289
$+++++++++++++++++16,978
$+++++++++++++++++++++2.66
$+++++++++++++++++++++2.63
$+++++++++++++++++++++2.61
$+++++++++++++++++++++2.58
$+++++++++++++++++++++2.02
$+++++++++++++++++++++2.00
+++++++++++++++++++++8,299
+++++++++++++++++++++8,399
$+++++++++++++++++++++1.12
+++++++++++++++++++++8,375
+++++++++++++++++++++8,470
$+++++++++++++++++++++0.92
+++++++++++++++++++++8,396
+++++++++++++++++++++8,506
$+++++++++++++++++++++0.80
3/12/15
Page 25
Microsoft%Corp.
Balance+Sheet+>+Three>Year+Comparison
(In+millions)
June%30,
2014
Years%Ended
June%30,
2013
June%30,
2012
$+++++++++++8,669
$+++++++++++3,804
$+++++++++++6,938
+++++++++++77,040
+++++++++++85,709
+++++++++++73,218
+++++++++++77,022
+++++++++++56,102
+++++++++++63,040
+++++++++++19,544
+++++++++++++2,660
+++++++++++++1,941
+++++++++++++4,392
+++++++++114,246
+++++++++++17,486
+++++++++++++1,938
+++++++++++++1,632
+++++++++++++3,388
+++++++++101,466
+++++++++++15,780
+++++++++++++1,137
+++++++++++++2,035
+++++++++++++3,092
+++++++++++85,084
Property+and+equipment,
net+of+accumulated+depreciation+of+$14,793+and+$12,513
Equity+and+other+investments
Goodwill
Intangible+assets,+net
Other+long>term+assets
Total+assets
+++++++++++13,011
+++++++++++14,597
+++++++++++20,127
+++++++++++++6,981
+++++++++++++3,422
$++++++172,384
+++++++++++++9,991
+++++++++++10,844
+++++++++++14,655
+++++++++++++3,083
+++++++++++++2,392
$++++++142,431
+++++++++++++8,269
+++++++++++++9,776
+++++++++++13,452
+++++++++++++3,170
+++++++++++++1,520
$++++++121,271
LIABILITIES+AND+SHAREHOLDERS'+EQUITY
Current+liabilities:
Accounts+payable
Short>term+debt
Current+portion+of+long>term+debt
Accrued+compensation
Income+taxes
Short>term+unearned+revenue
Securities+lending+payable
Other+current+liabilities
Total+Current+Liabilites
$+++++++++++7,432
+++++++++++++2,000
+++++++++++++++++>
+++++++++++++4,797
+++++++++++++++++782
+++++++++++23,150
+++++++++++++++++558
+++++++++++++6,906
+++++++++++45,625
$+++++++++++4,828
+++++++++++++++++>
+++++++++++++2,999
++++++++4,117.00
+++++++++++++++++592
+++++++++++20,639
+++++++++++++++++645
+++++++++++++3,597
+++++++++++37,417
$+++++++++++4,175
+++++++++++++++++>
+++++++++++++1,231
+++++++++++++3,875
+++++++++++++++++789
+++++++++++18,653
+++++++++++++++++814
+++++++++++++3,151
+++++++++++32,688
Long>term+debt
Long>term+unearned+revenue
Deferred+income+taxes
Other+long>term+liabilities
Total+liabilities
+++++++++++20,645
+++++++++++++2,008
+++++++++++++2,728
+++++++++++11,594
+++++++++++82,600
+++++++++++12,601
+++++++++++++1,760
+++++++++++++1,709
+++++++++++10,000
+++++++++++63,487
+++++++++++10,713
+++++++++++++1,406
+++++++++++++1,893
+++++++++++++8,208
+++++++++++54,908
+++++++++++68,366
+++++++++++67,306
+++++++++++65,797
+++++++++++17,710
+++++++++++++3,708
+++++++++++89,784
$++++++172,384
+++++++++++++9,895
+++++++++++++1,743
+++++++++++78,944
$++++++142,431
>+++++++++++++++++856
+++++++++++++1,422
+++++++++++66,363
$++++++121,271
ASSETS
Current+Assets
Cash+and+cash+equivalents
Short>term+marketable+securities
(Including+securities+loaned+of+$541+and+$579)
Total+Cash,+Cash+Equivalents,+and+Short>Term+Investments
Accounts+receivable,+
net+of+allowances+for+doubtful+accounts+of+$301+and+$336
Inventories
Deferred+income+taxes
Other+current+assets
Total+current+assets
Commitments+and+contingencies
Shareholder's+equity:
Common+stock+and+paid>in+capital+>+shares+authorized+24,000;
outstanding+8,239+and+8,328
Retained+earnings
Accumulated+other+comprehensive+income
Total+stockholders'+equity
Total+liabilities+and+stockholders'+equity
3/12/15
Page 26
Microsoft%Corp.
Statement,of,Cash,Flow
(In,millions)
Twelve%Months%Ended
Operations
Net,income
Adjustments,to,reconcile,net,income,to,net,cash,from,operations:
Goodwill,Impairment
Depreciation,,amortization,,and,other
StockDbased,compensation,expense
Net,recognized,losses,(gains,on,investments,and,derivatives
Excess,tax,benefits,from,stockDbased,compensation
Deferred,income,taxes
Deferral,of,unearned,revenue
Recognition,of,unearned,revenue
Changes,in,operating,assets,and,liabilities:
Accounts,receivable
Inventories
Other,current,assets
Accounts,payable
Other,current,liabilities
Other,longDterm,liabilities
Net,cash,from,operations
Financing
Proceeds,from,issuance,of,shortDterm,debt,,maturities,of,90,days
or,less,,net
Proceeds,from,issuance,of,debt
Repayments,of,debt
Common,stock,issued
Common,stock,repurchased
Common,stock,cash,dividends,paid
Excess,tax,benefits,from,stockDbased,compensation
Other
Net,cash,used,in,financing
Investing
Additions,to,property,and,equipment
Acquisitions,of,companies,,net,of,cash,required,,and,purchase,of
intangible,and,other,assets
Purchase,of,investments
Maturities,of,investments
Sales,of,investments
Securities,lending,payable
Net,cash,used,in,investing
Effect,of,exchange,rates,on,cash,and,cash,equivalents
Net,change,in,cash,and,cash,equivalents
Cash,and,cash,equivalents,,beginning,of,period
June%30,
2014
June%30,
2013
June%30,
2012
,,,,,,,,,,,22,074
,,,,,,,,,,,21,863
,,,,,,,,,,,16,978
,,,,,,,,,,,,,,,,,D
,,,,,,,,,,,,,5,212
,,,,,,,,,,,,,2,446
D,,,,,,,,,,,,,,,,109
D,,,,,,,,,,,,,,,,271
D,,,,,,,,,,,,,,,,331
,,,,,,,,,,,44,325
D,,,,,,,,,,,41,739
,,,,,,,,,,,,,,,,,D
,,,,,,,,,,,,,3,755
,,,,,,,,,,,,,2,406
,,,,,,,,,,,,,,,,,,80
D,,,,,,,,,,,,,,,,209
D,,,,,,,,,,,,,,,,,,19
,,,,,,,,,,,44,253
D,,,,,,,,,,,41,921
,,,,,,,,,,,,,6,193
,,,,,,,,,,,,,2,967
,,,,,,,,,,,,,2,244
D,,,,,,,,,,,,,,,,200
D,,,,,,,,,,,,,,,,,,93
,,,,,,,,,,,,,,,,954
,,,,,,,,,,,36,104
D,,,,,,,,,,,33,347
D,,,,,,,,,,,,,1,120
D,,,,,,,,,,,,,,,,161
D,,,,,,,,,,,,,,,,628
,,,,,,,,,,,,,,,,473
,,,,,,,,,,,,,1,075
,,,,,,,,,,,,,1,014
,,,,,,,,,,,32,231
D,,,,,,,,,,,,,1,807
D,,,,,,,,,,,,,,,,802
D,,,,,,,,,,,,,,,,478
,,,,,,,,,,,,,,,,537
,,,,,,,,,,,,,,,,146
,,,,,,,,,,,,,1,158
,,,,,,,,,,,28,833
D,,,,,,,,,,,,,1,156
,,,,,,,,,,,,,,,,184
D,,,,,,,,,,,,,,,,248
D,,,,,,,,,,,,,,,,,,31
,,,,,,,,,,,,,,,,410
,,,,,,,,,,,,,,,,174
,,,,,,,,,,,31,626
,,,,,,,,,,,,,,,,500
,,,,,,,,,,,10,350
D,,,,,,,,,,,,,3,888
,,,,,,,,,,,,,,,,607
D,,,,,,,,,,,,,7,316
D,,,,,,,,,,,,,8,879
,,,,,,,,,,,,,,,,271
D,,,,,,,,,,,,,,,,,,39
D,,,,,,,,,,,,,8,394
,,,,,,,,,,,,,,,,,D
,,,,,,,,,,,,,4,883
D,,,,,,,,,,,,,1,346
,,,,,,,,,,,,,,,,931
D,,,,,,,,,,,,,5,360
D,,,,,,,,,,,,,7,455
,,,,,,,,,,,,,,,,209
D,,,,,,,,,,,,,,,,,,10
D,,,,,,,,,,,,,8,148
,,,,,,,,,,,,,,,,,D
,,,,,,,,,,,,,,,,,D
,,,,,,,,,,,,,,,,,D
,,,,,,,,,,,,,1,913
D,,,,,,,,,,,,,5,029
D,,,,,,,,,,,,,6,385
,,,,,,,,,,,,,,,,,,93
,,,,,,,,,,,,,,,,,D
D,,,,,,,,,,,,,9,408
D,,,,,,,,,,,,,5,485
D,,,,,,,,,,,,,4,257
D,,,,,,,,,,,,,2,305
D,,,,,,,,,,,,,5,937
D,,,,,,,,,,,72,690
,,,,,,,,,,,,,5,272
,,,,,,,,,,,60,094
D,,,,,,,,,,,,,,,,,,87
D,,,,,,,,,,,18,833
D,,,,,,,,,,,,,1,584
D,,,,,,,,,,,75,396
,,,,,,,,,,,,,5,130
,,,,,,,,,,,52,464
D,,,,,,,,,,,,,,,,168
,,,,,,,,,,,23,811
D,,,,,,,,,,,10,112
D,,,,,,,,,,,57,250
,,,,,,,,,,,15,575
,,,,,,,,,,,29,700
D,,,,,,,,,,,,,,,,394
,,,,,,,,,,,24,786
D,,,,,,,,,,,,,,,,139
D,,,,,,,,,,,,,,,,,,,,,8
D,,,,,,,,,,,,,,,,104
,,,,,,,,,,,,,4,865
,,,,,,,,,,,,,3,804
D,,,,,,,,,,,,,3,134
,,,,,,,,,,,,,6,938
,,,,,,,,,,,,,2,672
,,,,,,,,,,,,,9,610
3/12/15
Page 27