According to Bruns (2004), the balance sheet is a financial document, which identifies a company’s assets and liabilities. By deducting asserts from liabilities, a company’s net worth can be calculated to show the value of the company. Further, it shows the financial of the company on a particular date and “it provides a snapshot of a business’ health at a point in time” (Bond, n.d. p. 4). However, the fact that the balance sheet is a snapshot denotes that it is only valid at the time it was created. Thus, it may not represent a true and fair view of the company. In this essay, I will discuss different aspects of the balance sheet for Microsoft. I will also focus on the importance of the balance sheet and the role it carries out.
Microsoft was founded in 1975 by Bill Gates and Paul Allen from Seattle, and incorporated in 1981 (Liquori, 2011). Being the number one software company in the world Microsoft employs about 52,000 people working full-time, 21,000 in product research and development, 23,500 in sales, marketing, and support, 2,200 in manufacturing and distribution, and 4,000 in finance and administration. The following report will include an analysis of financial reports, income statements, Balance sheets, and cash flow statements (Liquori, 2011).
Several companies use the balance sheet to make sound business decisions. The balance sheet is like a quantitative summary of a company’s financial condition at a specific point in time, including the assets, liabilities,
A balance sheet gives an overall picture of a company's financial situation by showing the total assets of a business, including liabilities plus equity. Current assets can include cash, accounts receivable, inventory and prepayments for insurance. The balance sheet is used by investors to get an idea of what the shareholders have invested, including
* A balance sheet is snapshot of the financials for that organization (with assets on the left and liabilities on the right side) for that particular date that was requested
The balance sheet (BS) is significant to a business due to its ability to provide a “snapshot” of a company’s assets and liabilities at any given time. This financial document is a cursory representation of a business’s health. The use of comparative BS whether it be yearly, quarterly, or monthly provides the interested parties a tool to observe trends that are positive, negative, or neutral to a company’s financial health (Finkler, Jones, and Koyner,2013) .
The balance sheet is considered a point in time statement because it elaborates on the current position of the organization. Based on the balance sheet, the organization is able to make an educated decision to know if it’s the best time to pursue additional business. The balance sheet is usually reviewed by a creditor when searching for new opportunities. Basically, the creditor determines the company’s position by subtracting the company 's liabilities from the assets. Liabilities are the debts and obligations a facility, regardless of the magnitude of the business. Once the liabilities have been subtracted from the assets, a stakeholder 's equity is determined.
Microsoft Corporation develops, manufactures and distributes a range of software products and services for various computing devices worldwide. Microsoft also manufactures gaming systems such as Xbox 360 and related entertainments systems. Microsoft was founded in 1975 and is headquartered in Redmond, Washington. Microsoft currently employs about 90,000 full-time employees worldwide.
While inaccurate accounting can cause misleading information about the company, every successful company should develop an income statement and balance sheet when monitoring financial growth. Also, formulating a horizontal and ratio analysis creates an accurate trend of the company spending behavior and debt-to-ratio venerability. A balance sheet can be considered as the bloodline of the company, allowing a quick view of financial fluency which could be attractive to outside investors. Last but not least, the income statement presents a hard result of gains, liabilities, revenues and debt within a yearly
Microsoft was founded in 1975, and is the worldwide leader in software, services, and solutions (Career). Microsoft is proud to offer great products and employ outstanding people. Previous Microsoft CEO, Steve Ballmer once said, “There are many things that are true about Microsoft. We have big goals, big dreams, and big aspirations for the future. We are both competitive with our products and in the way we attract and retain talent. For me, the most important factor is competition for talent, because I know our success comes from the people who work here” (Foley).
History of Microsoft Microsoft Corporation, leading American computer software company. Microsoft develops and sells a wide variety of computer software products in more than fifty countries. Microsoft's Windows operating systems for personal computers are the most widely use operating systems in the world. Microsoft had revenues of $14.4 billion for the fiscal year ending June 1998, and employs more than 27,000 people in 60 countries. Microsoft has it's headquaters in Redmond Washington.
Microsoft Corporation is an American global technology firm develops, manufactures, and sells computer software, electronics, and personal computers. The firm has its headquarters in Redmond, Washington. Bill Gates founded the corporation in 1975 to develop and sell necessary interpreters; it rose with time to become the dominant player in the computer operating system operating system it had its initial public offer (IPO) IN 1986. Its fast growth in the industry has enabled it to acquire Skype technologies in 2011 at the cost of $8.5 billion. The firm has plans to make more acquisitions this year. The profit margin of the company lies at US$16.79 billion.
This report is issued in order to inform the public about Microsoft Corporation. We analyzed the profitability and liquidity of this company. In addition, we were able to provide recommendations for investments or credits in Microsoft for the best interest of the public.
The balance sheet of a company reflects exactly what a company owns and what it owes to others, making it a very important thing to be considered for stock investment.
Balance sheets and income statements are a snapshot of a company’s stability and financial situation. Combined the statements show the income, expenses, and stockholder’s equity in the company. These statements are often analyzed by financial institutions when a company comes to them needing a loan. Stockholders and other investors also look at these statements to make sure their investment will return a profit for them. This paper will look at four different companies and their balance sheets and income statements. The companies are Eastman Chemical Company, Covenant Transportation
Financial statements are frequently a key source of information for financial decisions and taking a look at Microsoft’s financial statements can help us decide certain things about the company. There are three different types of statements that will be discussed in this section. These include: the balance sheet, the income statement, and the statement of cash flows. They are discussed here in either the sense of quarterly or yearly statements and will be noted as so. All information has been derived from Yahoo Finance. (http://finance.yahoo.com)
In 1975, Bill Gates and Paul Allen created a company called Microsoft. More than thirty years later, Microsoft is a leader in the field of computer programming. Gates and Allen both had big plans for their company and came up with different ways of managing people and products
Micosoft was founded on 4th April 1975 by Bill Gates & Paul Allen and is headquartered in Redmond, Washington (USA). The company provides employment to more than 89000 people. Microsoft recorded revenues of $62000 million in the financial Year 2010 (Microsoft, 2011).