Executive Summary of Microsoft Corporation's Annual Report

Topics: Balance sheet, Generally Accepted Accounting Principles, Asset Pages: 15 (2551 words) Published: December 11, 2011
Executive Summary of Microsoft Corporation

Executive Summary
The purpose of this executive summary is to analyze the most recent financial statements for Microsoft Corporation. First some of the major events in the history of the company will be identified. The company's financials, including the income statement, balance sheet, and statement of cash flows will be analyzed. This includes the company's assets, liabilities, revenue, and net income. Last a comparison provides how net income for the organization changed over the last three fiscal periods. Company History: When was the Company Founded? By Whom? List Other Historical Facts.

Microsoft Corporation, founded by Chair Bill Gates and Paul Allen, Senior Strategy

Advisor, in 1975, has been responsible for many technological breakthroughs. The duo's

first major breakthrough into the industry was the development of BASIC, the first personal

computer language designed for the Altair computer (Microsoft News Center, 2011). In 1980,

former classmate of Bill Gates at Harvard University Steve Ballmer (currently chief executive

officer) was hired to aid in running the company (Microsoft, 2011). In 1981, Microsoft released

the operating system MS-DOS for the IBM PC. From there, a constant stream of innovation took

place with the release of Windows 1.0 in 1985, which eliminated the confusing MS-DOS

command prompt (Microsoft, 2011). The ease of use, speed, security services, Internet, and

much more has continued to improve with the times and will continue to evolve. The Microsoft

Office suite, introduced in 1989 (Microsoft News Center, 2011), is another huge breakthrough

constantly improved and widely used for both personal and business purposes.

Who is the Audit Firm for the Company?

The audit firm for Microsoft Corporation, Deloitte & Touche LLP, conducts their audits

under the standards of the Public Company Accounting Oversight Board (Microsoft,

2010). Deloitte & Touche reported that the financial position of Microsoft Corporation is

presented fairly and under the accounting principles set forth by GAAP. Under the Internal

Control - Integrated Framework set by the Committee of Sponsoring Organizations of the

Treadway Commission (Microsoft, 2010), internal control of financial reporting is also


What Stock Exchange is the Company Listed on? What is Their Ticker Symbol?

The ticker symbol for Microsoft Corporation is MSFT and is traded under NASDAQ. The value of high common stock for the fiscal year of 2010 was $31.58 per share and $22 per share for low common stock (Microsoft, 2010). * How Much Cash and Cash Equivalents did the Company Have at the end of its 2 Most Recent Annual Reporting Periods?

At the end of 2009, the companies cash and cash equivalents totaled $6.076 billion,

decreasing to $5,505 billion in 2010. However, this section still experienced an increase because

short-term investments had risen significantly. The net increase for total cash, cash equivalents,

and short-term investments increased from 31.447 billion in 2009 to 36.788 billion in 2010,

ushering a 5.341 billion increase.
* What Were the Company’s Total Current Assets at the end of its 2 Most Recent Annual Reporting Periods? In What Order Should Current Assets be Presented?

In 2009, current assets totaled 49.280 billion. This value increased by 6.396 billion from

2010 to 55.676 billion. This change is noticeably attributed to by the increase in short-term

investments noted above and a 1.822 million increase in receivables. Other changes occurred,

including a minor decrease in deferred income taxes and other assets and a slight increase in

inventory. Assets are always listed in order of liquidity, or their ease of transfer into cash. *
* What Were the two Largest Current Assets at the end of its 2 Most Recent Annual...
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