UU-MBA-752-ZM: Corporate Finance Report - Microsoft Corporation

This report presents an in-depth analysis of Microsoft Corporation's financial performance. It begins with an evaluation of the financial analysis provided in the company's annual report, focusing on the application of generally accepted accounting principles (GAAP) and the presentation of financial statements. The report then delves into a discussion of the factors that may influence the company's performance beyond the provided ratios, including external market conditions and strategic decisions. Finally, it examines the elements that can impact the valuation of Microsoft's bonds and stocks, as well as their performance within secondary markets. The analysis draws on the 2019 annual report, the New York Stock Exchange listing, and other reliable sources, providing a comprehensive overview of Microsoft's financial position and outlook, from the perspective of upper-level management. This report covers topics such as ratio analysis, stock and bond valuation, and risk and return, offering insights into the company's financial health and strategic direction.

The report presents an evaluation of the financial analysis of the annual report of the
Microsoft Corporation. Microsoft is one of the leading organizations in the whole world that has
dominated every region in various countries. Their mission is to empower every person and also
every organization that does have on the planet so that they can achieve more success (Easton &
Sommers, 2018). Now a days, each and every organization does focus on building its own
proprietary technology mainly that are related to the technology, so that they can able to compete
and grow against their competition. In the next part, there is an evaluation upon the ratios which
has been calculated from the annual report of the organization. In the last part, there all the
factors that have the possibility to affect the bonds and stock valuation and also the performance
of secondary markets are discussed in this report.
The financial statement that has been made are prepared according to the accounting
policies that are generally accepted in the United States of America (“GAAP”). Upon the review
of the financial statements it can be seen that the investments, derivatives, and fair value
measurements are on the current period presentation based. All the consolidated statements are
based on the adoption of new accounting standard for financial instruments (Schroeder, Clark &
Cathey, 2019). On preparing the financial statements, the higher management does makes all the
assumptions upon the assets, liabilities, revenue and expenses. All the financial statements all are
based and responsible of the Company’s management. The auditors of the organization do
address all the issues related to the revenue recognition and also upon the customer agreements.

References
Easton, M., & Sommers, Z. (2018). Financial Statement Analysis & Valuation, 5e.
Schroeder, R. G., Clark, M. W., & Cathey, J. M. (2019). Financial accounting theory and
analysis: text and cases. John Wiley & Sons.