Instructions:

What: Access the Instructions here for accessing the SEC website to complete this assignment. You will be asked to use the information we are learning in class and apply it to actual companies to analyze their financial statements.

Questions:

Please print out the assignment questions to use as you find the answers in the SEC website and then provide answers in Webcourses. You will access the financial reports for two companies while completing this assignment:

- Microsoft Corp - Ticker Symbol MSFT (financial statements date 6/30/16 contained in the annual report dated 7/28/16).
- Walmart - Ticker Symbol WMT (financial statements date 1/31/16 contained in the annual report dated 3/30/16).

Answer all questions using the full dollar amount, not the abbreviated number shown in the financial statements. The financial statements will typically show the numbers in either 'thousands' or 'millions'.

• If the financial statements are in the millions - add 6 zeros to the end of the number
o For example, $4,200 abbreviated on the financial statement really equals $4,200,000,000
• If the financial statements are in the thousands - add 3 zeros to the end of the number
o For example, $4,200 abbreviated on the financial statement really equals $4,200,000

For Walmart's Balance Sheet dated 1/31/17, how much did their current portion of long-term (CPLTD) debt decrease from the balance shown as of year end 12/31/16? (Hint: they may not use the term CPLTD, but if you understand the definition and concept of CPLTD, you will be able to locate the proper account title.)

2,745,000,000
66,928,000,000
489,000,000
2,256,000,000

For Walmart's Balance Sheet dated 1/31/17, how much did their retained earnings decrease during the year ended 1/31/17 from the account balance as of year end 1/31/16?

90,021,000,000
89,354,000,000
198,825,000,000
667,000,000

Use Walmart's 1/31/17 Consolidated Statement of Stockholders' Equity to answer the following two questions.

What is the dollar amount of "Cash Dividends Declared" for the year ended 1/31/17? (Hint: the statement starts in 2014 - in order to get the changes that occurred during the most recent accounting period, you need to look at the bottom of the statement and the total column on the far left.)

6,294,000,000
6,185
6,216,000,000
6,185,000,000

Use Walmart's 1/31/17 Consolidated Statement of Stockholders' Equity to answer the following question. What is the total dollar value of the "Purchase of Company Stock" (treasury stock) during the year ending on 1/31/17? (Hint: the statement starts in 2014 - in order to get the changes that occurred during the most recent accounting period, you need to look at the bottom of the statement, and the total column on the far left.)

980,000,000
8,276,000,000
80,535,000,000
83,611

1. The Balance Sheet for Microsoft dated 6/30/16 is showing both short-term unearned (deferred) revenue and long-term unearned (deferred) revenue. Why do they use both of these accounts versus just one that is contained in the current liabilities?

a. The accountants needed more work to do, so they added an account.
b. A portion of the unearned revenue will be recognized in less than 12 months and the remaining portion will be recognized after the next 12 months.
c. Microsoft chose to delay the recognition of this revenue in order to select when they would recognize it in future years when they need to increase net income.

2. The Balance Sheet for Microsoft dated 6/30/16 is showing deferred income taxes (payable) in their long-term liabilities. What is the account balance as of 6/30/16?

a. 1,295,000,000
b. 121,697,000,000
c. 1,476,000,000
d. 59,357,000,000

Use Microsoft's Cash Flow Statement for the year ending 6/30/16 to answer the next 4 questions:

3. In Microsoft's Cash Flow Statement for the year ending 6/30/16, which account or activity represented the largest single SOURCE (inflow) of cash in the operating section of the cashflow?

a. Recognition of unearned revenue
b. Deferral of unearned revenue
c. Net income
d. Goodwill impariment

4. In Microsoft's Cash Flow Statement for the year ending 6/30/16, which account or activity represented the largest single USE (outflow) of cash in the investing section of the cashflow?

a. Maturities of investments
b. Sale of investments
c. Additions to property and equipment
d. Purchase of investments

5. In Microsoft's Cash Flow Statement for the year ending 6/30/16, what was the total impact to cash ("Net cash used in Financing") based on all of the activities shown in the Financing section?

a. Cash increased by $8,393,000,000
b. Cash decreased by $8,393,000
c. Cash decreased by $8,393,000,000
d. Cash increased by $8,393

6. The end result of the cash flow (all three sections) shows for Microsoft for the year ending 6/30/16 shows that Total Cash and Cash Equivalents increased.

a. True
b. False