The Balance Sheet For Microsoft

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According to Bruns (2004), the balance sheet is a financial document, which identifies a company’s assets and liabilities. By deducting asserts from liabilities, a company’s net worth can be calculated to show the value of the company. Further, it shows the financial of the company on a particular date and “it provides a snapshot of a business’ health at a point in time” (Bond, n.d. p. 4). However, the fact that the balance sheet is a snapshot denotes that it is only valid at the time it was created. Thus, it may not represent a true and fair view of the company. In this essay, I will discuss different aspects of the balance sheet for Microsoft. I will also focus on the importance of the balance sheet and the role it carries out. Microsoft was founded in 1975 by Bill Gates and Paul Allen from Seattle, and incorporated in 1981 (Liquori, 2011). Being the number one software company in the world Microsoft employs about 52,000 people working full-time, 21,000 in product research and development, 23,500 in sales, marketing, and support, 2,200 in manufacturing and distribution, and 4,000 in finance and administration. The following report will include an analysis of financial reports, income statements, Balance sheets, and cash flow statements (Liquori, 2011). Several companies use the balance sheet to make sound business decisions. The balance sheet is like a quantitative summary of a company’s financial condition at a specific point in time, including the assets, liabilities,
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