Order of Liquidity

The balance sheet is organized in the descending order of liquidity.

(In millions)
June 3020042005
Assets
Current assets:
 Cash and equivalents$14,304$ 4,851
 Short-term investments46,28832,900
  Total cash and short-term investments 60,59237,751
 Accounts receivable, net5,8907,180
 Inventories421491
 Deferred income taxes2,0971,701
 Other1,5661,614
  Total current assets 70,56648,737
Property and equipment, net2,3262,346
Equity and other investments12,21011,004
Goodwill3,1153,309
Intangible assets, net569499
Deferred income taxes3,8083,621
Other long-term assets1,7741,299
   Total assets$94,368$ 70,815
Liabilities and stockholders’ equity Current liabilities:
 Accounts payable$ 1,717$ 2,086
 Accrued compensation1,3391,662
 Income taxes3,4782,020
 Short-term unearned revenue6,5147,502
 Other1,9213,607
  Total current liabilities 14,96916,877
Long-term unearned revenue1,6631,665
Other long-term liabilities2,9114,158
Commitments and contingencies
Stockholders’ equity:
 Common stock and paid-in capital - shares authorized 24,000; outstanding 10,862 and 10,71056,39660,413
 Retained earnings (deficit), including accumulated other comprehensive income of $1,119 and $1,42618,429(12,298)
   Total stockholders’ equity74,82548,115
    Total liabilities and stockholders’ equity$94,368$ 70,815

Source: Used with permission. Microsoft 2005 Annual Report.

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