Business Finance
ACC561 University of Phoenix Microsoft Financial Statements Paper

ACC561

University of Phoenix

Question Description

Purpose of Assignment **NO PLAGIARISM**

This activity helps students recognize the significant role accounting plays in providing financial information to management for decision making through the evaluation of financial statements. This experiential assignment requires students to use ratios to evaluate and analyze a company's liquidity, solvency, and profitability.

Assignment Steps

Resources: Generally Accepted Accounting Principles (GAAP), U.S. Securities and Exchange Commission (SEC), University Library, Library resources: Company Directories and Financials

Tutorial help on Excel® and Word functions can be found on the Microsoft® Office website. There are also additional tutorials via the web offering support for Office products.

Select a publicly traded, U.S. corporation with which you are familiar or one where you currently work or have worked in the past.

Research the company on the Internet and download the Income Statement, Statement of Shareholders' Equity, Balance Sheet, and Statement of Cash Flows.

Develop a minimum 700-word examination of the financial statements and include the following:

  • Determine the net income for the current fiscal year (FY). Is this income up or down from the prior year?
  • Explain the relevance of changes in net income to investors.
  • Determine the ending balance in shareholders' equity. Why would organizations such as labor unions be interested in this?
  • Determine the total value of assets.
  • Discuss the relevance of the total value of assets to potential creditors and why this is important.
  • Compute the return on assets. Discuss the relative profitability of the company based on your results.
  • Compute the working capital and current ratio. Evaluate the relative liquidity of the company based on your results.
  • Compute the debt to assets ratio and the free cash flow for your company. Analyze the results and comment on the relative solvency of the company.
  • Discuss how the financial statements are used in your current role or a position you would like to hold. How might these aid you in managerial decision making?

Show your work in Microsoft® Word or Excel®.

Complete calculations/computations using Microsoft® Word or Excel®.

Include the four financial statements along with your assignment.

Format your assignment consistent with APA guidelines.


Unformatted Attachment Preview

Financial Statements Grading Guide ACC/561 Version 7 Accounting Copyright Copyright © 2017 by University of Phoenix. All rights reserved. University of Phoenix® is a registered trademark of Apollo Group, Inc. in the United States and/or other countries. Microsoft®, Windows®, and Windows NT® are registered trademarks of Microsoft Corporation in the United States and/or other countries. All other company and product names are trademarks or registered trademarks of their respective companies. Use of these marks is not intended to imply endorsement, sponsorship, or affiliation. Edited in accordance with University of Phoenix® editorial standards and practices. Financial Statements Grading Guide ACC/561 Version 7 Individual Assignment: Financial Statements Purpose of Assignment This activity helps students recognize the significant role accounting plays in providing financial information to management for decision making through the evaluation of financial statements. This experiential assignment requires students to use ratios to evaluate and analyze a company’s liquidity, solvency, and profitability. Resources Required Generally Accepted Accounting Principles (GAAP) U.S. Securities and Exchange Commission (SEC) University Library, Library resources - Company Directories and Financials Tutorial help on Excel® and Word functions can be found on the Microsoft® Office website. There are also additional tutorials via the web offering support for Office products. Grading Guide Content Selected a publicly traded, U.S. corporation with which student is familiar or one where student currently works or has worked in the past. Researched the company on the Internet and downloaded the Income Statement, Statement of Shareholders' Equity, Balance Sheet, and Statement of Cash Flows. Determined the net income for the current fiscal year (FY). Answered the following question: • Is this income up or down from the prior year? Explained the relevance of changes in net income to investors. Determined the ending balance in shareholders' equity. Answered the following question: • Why would organizations such as labor unions be interested in this? Determined the total value of assets. Discussed the relevance of the total value of assets to potential creditors and why this is important. Met Partially Met Not Met Comments: 2 Financial Statements Grading Guide ACC/561 Version 7 Content Met Partially Met Not Met Total Available Total Earned 4 #/4 Partially Met Not Met Total Available Total Earned Comments: Computed the return on assets. Discussed the relative profitability of the company based on student’s results. Computed the working capital and current ratio. Evaluated the relative liquidity of the company based on student’s results. Computed the debt to assets ratio and the free cash flow for student’s company. Analyzed the results and comment on the relative solvency of the company. Discussed how the financial statements are used in student’s current role or a position student would like to hold. Answered the following question: • How might these aid student in managerial decision making? Showed work in Microsoft® Word or Excel®. Completed calculations/computations using Microsoft® Word or Excel®. Included the four financial statements along with assignment. The examination is a minimum 700 words in length. Writing Guidelines Met The paper—including tables and graphs, headings, title page, and reference page—is consistent with APA formatting guidelines and meets course-level requirements. Intellectual property is recognized with in-text citations and a reference page. Paragraph and sentence transitions are present, logical, and maintain the flow throughout the paper. Sentences are complete, clear, and concise. Rules of grammar and usage are followed including spelling and punctuation. Comments: 3 Financial Statements Grading Guide ACC/561 Version 7 Writing Guidelines Assignment Total Additional comments: Met # Partially Met Not Met 1 #/1 5 #/5 Comments: 4 ...
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Final Answer

Attached.

1

Financial Statements
ACC/561
July 27, 2017

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Financial Statements
Financial statements give people a better understanding of how profitable or
nonprofitable an organization can be. There are individuals who do not understand this process
and can often wonder what organizations they should invest their money into. Microsoft is the
organization selected for this assignment.
“Microsoft is a technology company that supports the invention of, manufactures and
licenses goods and services related to computing” (Bellis, 2017, para, 1). The organization
Microsoft was founded through the relationship of Paul Allen and Bill Gates. The company
venture first opened in Japan in 1977. In 1981, Bill and Paul decided to move the organization to
Washington State, and the firm became known as Microsoft Inc. Over the next 30 years, the
company formed solid products and services by releasing different operating and gaming
systems, and the formulation of their first excursion into the hardware market by designing the
Microsoft Surface product line. Microsoft mission statement is “Our mission is to empower
every person and every organization on the planet to achieve more” (Microsoft, 2017).
Net Income
Microsoft current net income for the fiscal year 2017 is $21.2 million. When comparing
the current the fiscal year to the fiscal year 2016, net income has increased by $4.40 million. To
obtain a company net income, you take to total revenue and deduct the total number of expenses
to get the net income for the year. There are several reasons the increasing or decreasing in net
income is pertinent to investors. The first reason would be if the company is profitable and net
income continues to increase; investors will spend more money in the company. For example,
the net income will give a prediction on what the future of the organization will be in a few
years. If investors believe the company of the organization is profitable, the investors will buy

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and sell stock at a higher price based on that prediction from the net income (Kimmel,
Weygandt, & Kieso, 2016). Creditors use the information in a similar way.
Shareholders' Equity
Shareholder’s Equity is computed by adding the common stock and retained earnings.
The stockholder’s equity for Microsoft in the fiscal year 2017 is rounded to about $72.4 million.
There are several reasons why labor unions will be interested in the financial statements for the
organization. The main reason is that labor unio...

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University of Virginia

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