accounting-SEC 10K Project:Statement of Cash Flows for MICROSOFT

SEC 10K Project:Statement of Cash Flows for MICROSOFT

Respond to the questions from each of the three categories below.

Category: Operating Activities

1. Describe where Net Income is shown on the Statement of Cash
Flows and state the amount. Refer back to the Income Statement to verify the
amounts reported for Net Income are equal.

2. What amount(s) is reported for depreciation and or amortization?

3. Are any gains or losses reported on the Statement of Cash
Flows? If so, provide a summary of transaction(s) that resulted in the
gains and or losses. [Hint: you may need to review the Notes to Financial
Statements to learn which transactions resulted in gains/losses].

Category: Investing and Financing Activities

1. Discuss any investment(s) (type and amount) purchased, sold, or retired
during the current period?

2. Describe financing activities used by your corporation to increase
cash (or other assets).

3. Discuss financing activities that reduced cash.

Category: Analysis

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

a. Free cash flow