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Microsoft Corporation

Group members

- Tandin Penjore

- Sonam Wanghuk- Chundu Wangchen

- Dorji Tenzin

- Arpan Tamang

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Agenda

Business description

Investment decision

Income statement

Cash-flow

Balance sheet.

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BUSINESS DESCRIPTIONFounded

Mission

To enable people and businesses throughout the world to realize theirfull potential by creating technology that transforms the way peoplework, play, and communicate. We develop and market software,

services, and hardware that deliver new opportunities, greaterconvenience, and enhanced value to people's lives.

Size of BusinessOperate worldwide and have offices in more than 100 countries.

RevenueDeveloping, licensing, and supporting a wide range of softwareproducts and services, by designing and selling hardware, and bydelivering relevant online advertising to a global customer audience.

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BUSINESS DESCRIPTION

Products

include operating systems , servers, phones, productivityapplications; business solution applications; desktop and servermanagement tools; software development tools; video games; andonline advertising. Also sell hardware including the Xbox 360

gaming and entertainment console.

Other Services

Provide consulting and product and solution support services, andtrain and certify computer system integrators and developers. Also

offer cloud-based solutions that provide customers with software,services and content over the Internet by way of shared computingresources located in centralized data centers. Cloud revenue isearned primarily from usage fees and advertising.

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Investment Decision

Evaluate current financial roadmap.

Consider an appropriate mix of investments.

Create and maintain an emergency fund.

To pick out a stock that will create good long-

term value

Operating Income and net income

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Income Statement

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CASH FLOW STATEMENTS(In millions)

2012OperationsNet income $17,470

Adjustments to reconcile net income to net cash from operations:

Depreciation, amortization, and other 2,170

Stock-based compensation expense 1,724

Net recognized losses (gains) on investments and derivatives -74

Excess tax benefits from stock-based compensation -84

Deferred income taxes 282Deferral of unearned revenue 21,825Recognition of unearned revenue -23,993Changes in operating assets and liabilities:

Accounts receivable 3,851Inventories -79Other current assets 938Other long-term assets -36Accounts payable -380Other current liabilities -107Other long-term liabilities 442

Net cash from operations 23,949

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FinancingProceeds from issuance of debt 0Common stock issued 1,635Common stock repurchased -3,999Common stock cash dividends paid -4,707

Excess tax benefits from stock-based compensation 84Other 0

Net cash used in financing -6,987InvestingAdditions to property and

equipment -1,683

Acquisition of companies, net of cash acquired, and purchases ofintangible and other assets -9,586Purchases of investments -45,297Maturities of investments 13,122Sales of investments 23,317Securities lending payable 3

Net cash used in investing -20,124Effect of exchange rates on cash

and cash equivalents -60

Net change in cash and cash equivalents -3,222

Cash and cash equivalents, beginning of period 9,610Cash and cash equivalents, end of

period $ 6,388

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BALANCE SHEETS

March 31,2013

June 30,2012

Assets

Current assets:Cash and cash equivalents $ 5,240 $ 6,938Short-term investments (including securities

loaned of$493 and $785) 69,243 56,102Total cash, cash equivalents, and short-term

investments 74,483 63,040Accounts receivable, net of allowance for doubtful

accounts of$267 and $389 11,991 15,780Inventories 2,133 1,137Deferred income taxes 1,676 2,035

Other 3,241 3,092

Total current assets 93,524 85,084Property and equipment, net of accumulateddepreciation of$12,247 and $10,962 9,204 8,269

Equity and other investments 11,193 9,776Goodwill 14,682 13,452Intangible assets, net 3,240 3,170Other long-term assets 2,262 1,520

Total assets $ 134,105 $ 121,271

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Liabilities and stockholders' equityCurrent liabilities:

Accounts payable $ 4,532 $ 4,175Current portion of long-term debt 2,246 1,231Accrued compensation 3,474 3,875

Income taxes 689 789Short-term unearned revenue 16,511 18,653Securities lending payable 564 814Other 3,913 3,151

Total current liabilities 31,929 32,688Long-term debt 11,949 10,713

Long-term unearned revenue 1,394 1,406Deferred income taxes 2,424 1,893

Other long-term liabilities 9,721 8,208Total liabilities 57,417 54,908

Commitments and contingenciesStockholders' equity:

Common stock and paid-in capital - sharesauthorized 24,000; outstanding 8,349 and 8,381 66,826 65,797Retained earnings (deficit) 7,657 (856)Accumulated other comprehensive income 2,205 1,422

Total stockholders' equity 76,688 66,363

Total liabilities and stockholders' equity $ 134,105 $ 121,271

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Thank You