Annual Report Project

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Laurel Zimmermann Annual Report Project 1. Executive Summary I am writing this Annual Report from an investor’s perspective. The purpose of this analysis is to establish whether Microsoft would be a good company to invest in and purchase stocks from. 2. Company Facts a. Name: Microsoft Corporation b. Location of corporate headquarters: One Microsoft way, Redmond, Washington 98052-6399 c. Fiscal year ending date: June 30, 2015 d. Primary products or services: Technology and Computer Software e. Highest & Lowest price of common stock in the last two years: A high of $50.05 in December and a low of $40.12 in June f. Current price: $54.15 g. Security exchange on which stock is traded: NASDAQ h. Ticker Symbol: MSFT 3. SEC compliance a. Annual …show more content…

SIC: 7372 b. Description of industry: Services-Prepackaged Software c. Identification of competitors: APPLE INC, GOOGLE INC, ADOBE SYSTEMCS INC, INTEGRATED SYSTEMCS INC. d. Industry’s future prospects: Microsoft is currently working on creating ways to lead the industry in delivering new productivity, entertainment, and business processes to improve how people communicate, collaborate, learn, work, play, and interact with one another. One way they are doing this is by generating new form factors that have increasingly expected ways to intermingle with them, such as touch, gesture, and speed. They are unifying the cross-device user experience and bringing new advances to the market by establishing the Windows platform across the PC, tablet, phone, server, and the cloud. New experiences and opportunities are becoming available by applying machine learning to make technology more intuitive and able to act on our behalf, instead of at our …show more content…

Recent events influencing (e.): Microsoft launched its first laptop computer, the Microsoft Surface Book. 5. Accounting Analysis a. Revenue & recognition policies: Revenue is defined as the amount of money that a company actually receives during a specific period, including discounts and deductions for returned merchandise. Revenue is recognized in four situations; when persuasive evidence of an arrangement exists, when the fee is fixed or determinable, when delivery has occurred, and when collectability is probably. b. Major categories of expenses: Cost of Revenue, Product Warranty, Research and Development, Sales and Marketing, Stock-Based Compensation, Employee Stock Purchase Plan, Income Taxes, and Fair Value Measurements. c. Investments: Microsoft is currently investing in the development and acquisition of a variety of hardware for productivity, communication, and investments in others. d. Accounts receivable: The allowance for doubtful accounts chooses the allowance based on past occurrences and other obtainable