Order of Liquidity
The balance sheet is organized in the descending order of liquidity.
(In millions) | ||||||
June 30 | 2004 | 2005 | ||||
Assets | ||||||
Current assets: | ||||||
Cash and equivalents | $14,304 | $ 4,851 | ||||
Short-term investments | 46,288 | 32,900 | ||||
Total cash and short-term investments | 60,592 | 37,751 | ||||
Accounts receivable, net | 5,890 | 7,180 | ||||
Inventories | 421 | 491 | ||||
Deferred income taxes | 2,097 | 1,701 | ||||
Other | 1,566 | 1,614 | ||||
Total current assets | 70,566 | 48,737 | ||||
Property and equipment, net | 2,326 | 2,346 | ||||
Equity and other investments | 12,210 | 11,004 | ||||
Goodwill | 3,115 | 3,309 | ||||
Intangible assets, net | 569 | 499 | ||||
Deferred income taxes | 3,808 | 3,621 | ||||
Other long-term assets | 1,774 | 1,299 | ||||
Total assets | $94,368 | $ 70,815 | ||||
Liabilities and stockholders’ equity Current liabilities: | ||||||
Accounts payable | $ 1,717 | $ 2,086 | ||||
Accrued compensation | 1,339 | 1,662 | ||||
Income taxes | 3,478 | 2,020 | ||||
Short-term unearned revenue | 6,514 | 7,502 | ||||
Other | 1,921 | 3,607 | ||||
Total current liabilities | 14,969 | 16,877 | ||||
Long-term unearned revenue | 1,663 | 1,665 | ||||
Other long-term liabilities | 2,911 | 4,158 | ||||
Commitments and contingencies | ||||||
Stockholders’ equity: | ||||||
Common stock and paid-in capital - shares authorized 24,000; outstanding 10,862 and 10,710 | 56,396 | 60,413 | ||||
Retained earnings (deficit), including accumulated other comprehensive income of $1,119 and $1,426 | 18,429 | (12,298) | ||||
Total stockholders’ equity | 74,825 | 48,115 | ||||
Total liabilities and stockholders’ equity | $94,368 | $ 70,815 |
Source: Used with permission. Microsoft 2005 Annual Report.
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