Using the Microsoft 10K for the Fiscal Year ended June 30, 2018 to answer questions: 1. Interpret the results of 2018 "above the line" compared to 2017 "above the line" and then 2017 "below the line" and 2017 "below the line". 2. What is the revenue and cost streams of MSFT using the 10K. How are the costs allocated between the product and service streams? 3. What are the revenue recognition policy of MSFT?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Using the Microsoft 10K for the Fiscal Year ended June 30, 2018 to answer questions:

1. Interpret the results of 2018 "above the line" compared to 2017 "above the line" and then 2017 "below the line" and 2017 "below the line".

2. What is the revenue and cost streams of MSFT using the 10K. How are the costs allocated between the product and service streams?

3. What are the revenue recognition policy of MSFT?
4. What are some examples of the revenue recognition for each area as mentioned in the report?
5. What is the EBIT and EBITDA for MSFT for 2018 and 2017? How did you calculate this?

6. Using the MSFT financial statements, what is the variance for the balances listed below). The answer must include:

% change from 2017 to 2018
$ change from 2017 to 2018
please state whether it is a favorable or unfavorable variance from 2017 to 2018

Cost of services

Selling, general, administration and other

Gross Profit of services

Gross Profit of products

7. In the financial statement, what is the balance of total deferred revenue for Microsoft at 2018 and 2017?
8. What is in the balance of deferred revenue (refer to the footnotes of the financial statements in the Microsoft 10K)

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