Microsoft Financial Statement Analysis
Written by: William Panagos

Table of Contents
Introduction 3
Deferred Taxes 4
Temporary/Permanent Differences 5
Tax Provisions 5
Defined Retirement Plans 6
EPS (Earnings per Share) 6
Share-Based Compensation…………………………………………………………………………………………………………………….7
Cash Flow………………………………………………………………………………………………………………………………………………..7
Investing and Financing ………………………………………………………………………………………………………………………..7
Non-Cash Transaction………….………………………………………………………………………………………………………………..8
Conclusion …………………………………………………………………………………………………………………………………………………………….9

Introduction The following report will be a financial report analysis of Microsoft Corporation. Microsoft’s fiscal year ends on June 30th of every year. So the most recent financial information available is from 2010 and 2011. Microsoft has been a global leader in providing some of the best computer software available to the public. They help people increase productivity and efficiency as the workplace becomes more demanding. This report will include analysis of the financial and accounting aspects of their Annual Report of the Microsoft Corporation, including information from Income Statements, Balance sheets, Cash Flow Statements, and Equity. Microsoft has transformed how we share and obtain information. Microsoft has changed the way businesses and institutions operate. They have made the world a faster and easier by place making instant access to information possible.

Deferred Taxes A deferred tax asset is an asset that can be used to reduce a period’s income tax expense. A deferred tax liability will create temporary differences in accounting and tax carrying values. “Deferred income tax balances reflect the effects of temporary differences between the carrying amounts of assets and liabilities and their tax bases and are stated at