What are the coverage ratios for the following data (using formula below)? Please show how you came up with solution. Thank you Times interest earned = EBIT / Interest expense = ?? Times burden covered = EBIT / Interest + Principal repayment / 1 - tax rate = ?? MICROSOFT CORP BALANCE SHEET 2014 2015 Assets Cash Cash and cash equivalents $8,669 $5,595 Short-term investments $77,040 $90,931 Total cash $85,709 $96,526 Receivables $19,544 $17,908 Inventories $2,660 $2,902 Deferred income taxes $1,941 $1,915 Other current assets $4,392 $5,461 Total current assets $114,246 $124,712 Non-current assets Gross property, plant and equipment $27,804 $32,337 Accumulated Depreciation -$14,793 -$17,606 Net property, plant and equipment $13,011 $14,731 Equity and other investments $14,597 $12,053 Goodwill $20,127 $16,939 Intangible assets $6,981 $4,835 Other long-term assets $3,422 $2,953 Total non-current assets $58,138 $51,511 Total assets $172,384 $176,223 Liabilities and stockholders' equity Liabilities Current liabilities Short-term debt $2,000 $7,484 Accounts payable $7,432 $6,591 Taxes payable $782 $606 Accrued liabilities $4,797 $5,096 Deferred revenues $23,150 $23,223 Other current liabilities $7,464 $6,858 Total current liabilities $45,625 $49,858 Non-current liabilities Long-term debt $20,645 $27,808 Deferred taxes liabilities $2,728 $2,835 Deferred revenues $2,008 $2,095 Other long-term liabilities $11,594 $13,544 Total non-current liabilities $36,975 $46,282 Total liabilities $82,600 $96,140 Stockholders' equity Common stock $68,366 $68,465 Retained earnings $17,710 $9,096 Accumulated other comprehensive income $3,708 $2,522 Total stockholders' equity $89,784 $80,083 Total liabilities and stockholders' equity $172,384 $176,223 MICROSOFT CORP INCOME STATEMENT (USD in millions except per share data) 2014 2015 Revenue $86,833 $93,580 Cost of revenue $26,934 $33,038 Gross profit $59,899 $60,542 Operating expenses Research and development $11,381 $12,046 Sales, General and administrative $20,632 $20,324 Restructuring, merger and acquisition $127 $0 Other operating expenses $0 $10,011 Total operating expenses $32,140 $42,381 Operating income $27,759 $18,161 Interest Expense $597 $781 Other income (expense) $658 $1,127 Income before taxes $27,820 $18,507 Provision for income taxes $5,746 $6,314 Net income from continuing operations $22,074 $12,193 Net income $22,074 $12,193 Net income available to common shareholders $22,074 $12,193 Earnings per share Basic $2.66 $1.49 Diluted $2.63 $1.48 Weighted average shares outstanding Basic $8,299 $8,177 Diluted $8,399 $8,254 EBITDA $33,629 $25,245 MICROSOFT CORP CASH FLOW STATEMENT (USD in millions except per share data) 2014 2015 Cash Flows From Operating Activities Net income $22,074 $12,193 Depreciation & amortization $5,212 $5,957 Investment/asset impairment charges $0 $7,498 Investments losses (gains) -$109 -$443 Deferred income taxes -$331 $224 Stock based compensation $2,446 $2,574 Accounts receivable -$1,120 $1,456 Inventory -$161 -$272 Accounts payable $473 -$1,054 Other working capital $1,432 $1,383 Other non-cash items $2,315 -$436 Net cash provided by operating activities $32,231 $29,080 Cash Flows From Investing Activities Investments in property, plant, and equipment -$5,485 -$5,944 Acquisitions, net -$5,937 -$3,723 Purchases of investments -$72,690 -$98,729 Sales/Maturities of investments $65,366 $85,861 Other investing activities -$87 -$466 Net cash used for investing activities -$18,833 -$23,001 Cash Flows From Financing Activities Debt issued $10,350 $10,680 Debt repayment -$3,888 -$1,500 Common stock issued $607 $634 Common stock repurchased -$7,316 -$14,443 Excess tax benefit from stock based compensation $271 $588 Dividend paid -$8,879 -$9,882 Other financing activities $461 $4,843 Net cash provided by (used for) financing activities -$8,394 -$9,080 Effect of exchange rate changes -$139 -$73 Net change in cash $4,865 -$3,074 Cash at beginning of period $3,804 $8,669 Cash at end of period $8,669 $5,595 Free Cash Flow Operating cash flow $32,231 $29,080 Capital expenditure -$5,485 -$5,944 Free cash flow $26,746 $23,136

Question

What are the coverage ratios for the following data (using formula below)? Please show how you came up with solution. Thank you Times interest earned = EBIT / Interest expense = ?? Times burden covered = EBIT / Interest + Principal repayment / 1 - tax rate = ??     MICROSOFT CORP BALANCE SHEET     2014 2015    Assets     Cash      Cash and cash equivalents $8,669 $5,595   Short-term investments $77,040 $90,931    Total cash   $85,709   $96,526     Receivables $19,544 $17,908    Inventories $2,660 $2,902   Deferred income taxes $1,941 $1,915   Other current assets $4,392 $5,461    Total current assets   $114,246   $124,712     Non-current assets      Gross property, plant and equipment $27,804 $32,337    Accumulated Depreciation -$14,793 -$17,606    Net property, plant and equipment   $13,011   $14,731    Equity and other investments $14,597 $12,053    Goodwill $20,127 $16,939   Intangible assets $6,981 $4,835   Other long-term assets $3,422 $2,953    Total non-current assets   $58,138   $51,511     Total assets   $172,384   $176,223     Liabilities and stockholders' equity     Liabilities       Current liabilities      Short-term debt $2,000 $7,484   Accounts payable $7,432 $6,591   Taxes payable $782 $606   Accrued liabilities $4,797 $5,096   Deferred revenues $23,150 $23,223   Other current liabilities $7,464 $6,858    Total current liabilities   $45,625   $49,858     Non-current liabilities      Long-term debt $20,645 $27,808   Deferred taxes liabilities $2,728 $2,835   Deferred revenues $2,008 $2,095   Other long-term liabilities $11,594 $13,544    Total non-current liabilities   $36,975   $46,282     Total liabilities   $82,600   $96,140     Stockholders' equity    Common stock $68,366 $68,465   Retained earnings $17,710 $9,096    Accumulated other comprehensive income $3,708 $2,522    Total stockholders' equity   $89,784   $80,083     Total liabilities and stockholders' equity   $172,384   $176,223          MICROSOFT CORP INCOME STATEMENT    (USD in millions except per share data) 2014 2015    Revenue $86,833 $93,580   Cost of revenue $26,934 $33,038   Gross profit $59,899 $60,542    Operating expenses    Research and development $11,381 $12,046   Sales, General and administrative $20,632 $20,324    Restructuring, merger and acquisition $127 $0   Other operating expenses $0 $10,011    Total operating expenses   $32,140   $42,381    Operating income $27,759 $18,161   Interest Expense $597 $781   Other income (expense) $658 $1,127   Income before taxes $27,820 $18,507   Provision for income taxes $5,746 $6,314   Net income from continuing operations $22,074 $12,193   Net income $22,074 $12,193   Net income available to common shareholders $22,074 $12,193    Earnings per share    Basic $2.66 $1.49    Diluted $2.63 $1.48    Weighted average shares outstanding    Basic $8,299 $8,177    Diluted $8,399 $8,254    EBITDA $33,629 $25,245         MICROSOFT CORP CASH FLOW STATEMENT    (USD in millions except per share data) 2014 2015   Cash Flows From Operating Activities   Net income $22,074 $12,193    Depreciation & amortization $5,212 $5,957    Investment/asset impairment charges $0 $7,498    Investments losses (gains) -$109 -$443   Deferred income taxes -$331 $224   Stock based compensation $2,446 $2,574   Accounts receivable -$1,120 $1,456    Inventory -$161 -$272   Accounts payable $473 -$1,054   Other working capital $1,432 $1,383   Other non-cash items $2,315 -$436    Net cash provided by operating activities   $32,231   $29,080    Cash Flows From Investing Activities    Investments in property, plant, and equipment -$5,485 -$5,944    Acquisitions, net -$5,937 -$3,723   Purchases of investments -$72,690 -$98,729    Sales/Maturities of investments $65,366 $85,861   Other investing activities -$87 -$466    Net cash used for investing activities   -$18,833   -$23,001    Cash Flows From Financing Activities   Debt issued $10,350 $10,680   Debt repayment -$3,888 -$1,500   Common stock issued $607 $634   Common stock repurchased -$7,316 -$14,443   Excess tax benefit from stock based compensation $271 $588   Dividend paid -$8,879 -$9,882   Other financing activities $461 $4,843    Net cash provided by (used for) financing activities   -$8,394   -$9,080    Effect of exchange rate changes -$139 -$73   Net change in cash $4,865 -$3,074   Cash at beginning of period $3,804 $8,669   Cash at end of period $8,669 $5,595   Free Cash Flow   Operating cash flow $32,231 $29,080   Capital expenditure -$5,485 -$5,944    Free cash flow   $26,746   $23,136


BALANCE SHEETS
(In millions)

	June 30, 2016	June 30, 2015
Assets
Current assets:
Cash and cash equivalents	$6,510	$5,595
Short-term investments (including securities loaned of $204 and $75)	106,730	90,931
Total cash, cash equivalents, and short-term investments	113,240	96,526
Accounts receivable, net of allowance for doubtful accounts of $426 and $335	18,277	17,908
Inventories	2,251	2,902
Other	5,892	5,461
Total current assets	139,660	122,797
Property and equipment, net of accumulated depreciation of $19,800 and $17,606	18,356	14,731
Equity and other investments	10,431	12,053
Goodwill	17,872	16,939
Intangible assets, net	3,733	4,835
Other long-term assets	3,642	3,117
Total assets	$193,694	$174,472

Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$6,898	$6,591
Short-term debt	12,904	4,985
Current portion of long-term debt	0	2,499
Accrued compensation	5,264	5,096
Income taxes	580	606
Short-term unearned revenue	27,468	23,223
Securities lending payable	294	92
Other	5,949	6,555
Total current liabilities	59,357	49,647
Long-term debt	40,783	27,808
Long-term unearned revenue	6,441	2,095
Deferred income taxes	1,476	1,295
Other long-term liabilities	13,640	13,544
Total liabilities	121,697	94,389
Commitments and contingencies
Stockholders' equity:
Common stock and paid-in capital - shares authorized 24,000; outstanding 7,808 and 8,027	68,178	68,465
Retained earnings	2,282	9,096
Accumulated other comprehensive income	1,537	2,522
Total stockholders' equity	71,997	80,083
Total liabilities and stockholders' equity	$193,694	$174,472

Unlock all answers

Related questions

Weekly leaderboard

MICROSOFT CORP BALANCE SHEET
	2014	2015
Assets
Cash
Cash and cash equivalents	$8,669	$5,595
Short-term investments	$77,040	$90,931
Total cash	$85,709	$96,526
Receivables	$19,544	$17,908
Inventories	$2,660	$2,902
Deferred income taxes	$1,941	$1,915
Other current assets	$4,392	$5,461
Total current assets	$114,246	$124,712
Non-current assets
Gross property, plant and equipment	$27,804	$32,337
Accumulated Depreciation	-$14,793	-$17,606
Net property, plant and equipment	$13,011	$14,731
Equity and other investments	$14,597	$12,053
Goodwill	$20,127	$16,939
Intangible assets	$6,981	$4,835
Other long-term assets	$3,422	$2,953
Total non-current assets	$58,138	$51,511
Total assets	$172,384	$176,223
Liabilities and stockholders' equity
Liabilities
Current liabilities
Short-term debt	$2,000	$7,484
Accounts payable	$7,432	$6,591
Taxes payable	$782	$606
Accrued liabilities	$4,797	$5,096
Deferred revenues	$23,150	$23,223
Other current liabilities	$7,464	$6,858
Total current liabilities	$45,625	$49,858
Non-current liabilities
Long-term debt	$20,645	$27,808
Deferred taxes liabilities	$2,728	$2,835
Deferred revenues	$2,008	$2,095
Other long-term liabilities	$11,594	$13,544
Total non-current liabilities	$36,975	$46,282
Total liabilities	$82,600	$96,140
Stockholders' equity
Common stock	$68,366	$68,465
Retained earnings	$17,710	$9,096
Accumulated other comprehensive income	$3,708	$2,522
Total stockholders' equity	$89,784	$80,083
Total liabilities and stockholders' equity	$172,384	$176,223

MICROSOFT CORP INCOME STATEMENT
(USD in millions except per share data)	2014	2015
Revenue	$86,833	$93,580
Cost of revenue	$26,934	$33,038
Gross profit	$59,899	$60,542
Operating expenses
Research and development	$11,381	$12,046
Sales, General and administrative	$20,632	$20,324
Restructuring, merger and acquisition	$127	$0
Other operating expenses	$0	$10,011
Total operating expenses	$32,140	$42,381
Operating income	$27,759	$18,161
Interest Expense	$597	$781
Other income (expense)	$658	$1,127
Income before taxes	$27,820	$18,507
Provision for income taxes	$5,746	$6,314
Net income from continuing operations	$22,074	$12,193
Net income	$22,074	$12,193
Net income available to common shareholders	$22,074	$12,193
Earnings per share
Basic	$2.66	$1.49
Diluted	$2.63	$1.48
Weighted average shares outstanding
Basic	$8,299	$8,177
Diluted	$8,399	$8,254
EBITDA	$33,629	$25,245

MICROSOFT CORP CASH FLOW STATEMENT
(USD in millions except per share data)	2014	2015
Cash Flows From Operating Activities
Net income	$22,074	$12,193
Depreciation & amortization	$5,212	$5,957
Investment/asset impairment charges	$0	$7,498
Investments losses (gains)	-$109	-$443
Deferred income taxes	-$331	$224
Stock based compensation	$2,446	$2,574
Accounts receivable	-$1,120	$1,456
Inventory	-$161	-$272
Accounts payable	$473	-$1,054
Other working capital	$1,432	$1,383
Other non-cash items	$2,315	-$436
Net cash provided by operating activities	$32,231	$29,080
Cash Flows From Investing Activities
Investments in property, plant, and equipment	-$5,485	-$5,944
Acquisitions, net	-$5,937	-$3,723
Purchases of investments	-$72,690	-$98,729
Sales/Maturities of investments	$65,366	$85,861
Other investing activities	-$87	-$466
Net cash used for investing activities	-$18,833	-$23,001
Cash Flows From Financing Activities
Debt issued	$10,350	$10,680
Debt repayment	-$3,888	-$1,500
Common stock issued	$607	$634
Common stock repurchased	-$7,316	-$14,443
Excess tax benefit from stock based compensation	$271	$588
Dividend paid	-$8,879	-$9,882
Other financing activities	$461	$4,843
Net cash provided by (used for) financing activities	-$8,394	-$9,080
Effect of exchange rate changes	-$139	-$73
Net change in cash	$4,865	-$3,074
Cash at beginning of period	$3,804	$8,669
Cash at end of period	$8,669	$5,595
Free Cash Flow
Operating cash flow	$32,231	$29,080
Capital expenditure	-$5,485	-$5,944
Free cash flow	$26,746	$23,136