account-Describe the composition of your corporation’s

SEC 10K Project:Statement of Stockholder’s Equity for Microsoft

Respond to one or more question(s) from each of the three categories
below.

Category: Capital stock

1. Describe the composition of your corporation’s contributed capital
[Hint: contributed capital includes common and preferred stock plus any paid
in capital in excess of par (or stated value)].

2. Describe any other accounts reported in the Stockholder’s Equity
section of the Balance Sheet.

3. Discuss Treasury Stock transactions during the current year, if any.

Category: Retained Earnings

1. Use the following equation and show how the Retained Earnings account has
changed during the year. [Hint: the beginning balance of Retained
Earnings is also equal to the ending balance of Retained Earnings in the
prior year.]

Retained earnings, beginning balance
+ Net Income
– Dividends
= Retained earnings, ending balance

[Note: if the Statement of Stockholder’s Equity shows other accounts in the
computation of Retained Earnings, please ask the professor for guidance]

Category: Analysis

1. Calculate the following ratios for the most current year and comment
on the results of your ratio analysis.

a. Return on stockholder’s equity

b. Earnings per share