Microsoft Excel LibreOffice Calc

Microsoft Corp. (MSFT)


Statement of Cash Flows

Difficulty: Beginner

The cash flow statement provides information about a company’s cash receipts and cash payments during an accounting period, showing how these cash flaws link the ending cash balance to the beginning balance shown on the company’s statement of financial position.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Microsoft Corp., Consolidated Statement of Cash Flows

USD $ in millions

Microsoft Excel LibreOffice Calc
12 months ended Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015 Jun 30, 2014 Jun 30, 2013
Net income 16,571  21,204  16,798  12,193  22,074  21,863 
Asset impairments –  –  630  7,498  –  – 
Depreciation, amortization, and other 10,261  8,778  6,622  5,957  5,212  3,755 
Stock-based compensation expense 3,940  3,266  2,668  2,574  2,446  2,406 
Net recognized (gains) losses on investments and derivatives (2,212) (2,073) (223) (443) (109) 80 
Deferred income taxes (5,143) (3,296) 332  224  (331) (19)
Deferral of unearned revenue –  67,711  57,072  45,072  44,325  44,253 
Recognition of unearned revenue –  (57,735) (48,498) (44,920) (41,739) (41,921)
Accounts receivable (3,862) (925) (530) 1,456  (1,120) (1,807)
Inventories (465) 50  600  (272) (161) (802)
Other current assets (952) 1,066  (1,167) 62  (29) (129)
Other long-term assets (285) (539) (41) 346  (628) (478)
Accounts payable 1,148  81  88  (1,054) 473  537 
Unearned revenue 5,922  –  –  –  –  – 
Income taxes 18,183  –  –  –  –  – 
Other current liabilities 798  386  (260) (624) 1,075  146 
Other long-term liabilities (20) 1,533  (766) 1,599  1,014  1,158 
Changes in operating assets and liabilities 20,467  1,652  (2,076) 1,513  624  (1,375)
Adjustments to reconcile net income to net cash from operations 27,313  18,303  16,527  17,475  10,428  7,179 
Net cash from operations 43,884  39,507  33,325  29,668  32,502  29,042 
Proceeds from issuance (repayments) of short-term debt, maturities of 90 days or less, net (7,324) (4,963) 7,195  4,481  500  – 
Proceeds from issuance of debt 7,183  44,344  13,884  10,680  10,350  4,883 
Repayments of debt (10,060) (7,922) (2,796) (1,500) (3,888) (1,346)
Common stock issued 1,002  772  668  634  607  931 
Common stock repurchased (10,721) (11,788) (15,969) (14,443) (7,316) (5,360)
Common stock cash dividends paid (12,699) (11,845) (11,006) (9,882) (8,879) (7,455)
Other, net (971) (190) (369) 362  (39) (10)
Net cash from (used in) financing (33,590) 8,408  (8,393) (9,668) (8,665) (8,357)
Additions to property and equipment (11,632) (8,129) (8,343) (5,944) (5,485) (4,257)
Acquisition of companies, net of cash acquired, and purchases of intangible and other assets (888) (25,944) (1,393) (3,723) (5,937) (1,584)
Purchases of investments (137,380) (176,905) (129,758) (98,729) (72,690) (75,396)
Maturities of investments 26,360  28,044  22,054  15,013  5,272  5,130 
Sales of investments 117,577  136,350  93,287  70,848  60,094  52,464 
Securities lending payable (98) (197) 203  (466) (87) (168)
Net cash used in investing (6,061) (46,781) (23,950) (23,001) (18,833) (23,811)
Effect of foreign exchange rates on cash and cash equivalents 50  19  (67) (73) (139) (8)
Net change in cash and cash equivalents 4,283  1,153  915  (3,074) 4,865  (3,134)
Cash and cash equivalents, beginning of period 7,663  6,510  5,595  8,669  3,804  6,938 
Cash and cash equivalents, end of period 11,946  7,663  6,510  5,595  8,669  3,804 

Based on: 10-K (filing date: 2018-08-03), 10-K (filing date: 2017-08-02), 10-K (filing date: 2016-07-28), 10-K (filing date: 2015-07-31), 10-K (filing date: 2014-07-31), 10-K (filing date: 2013-07-30).

Item Description The company
Net cash from operations Amount of cash inflow (outflow) from operating activities, excluding discontinued operations. Operating activity cash flows include transactions, adjustments, and changes in value not defined as investing or financing activities. Microsoft Corp.’s net cash from operations increased from 2016 to 2017 and from 2017 to 2018.
Net cash from (used in) financing Amount of cash inflow (outflow) of financing activities, excluding discontinued operations. Financing activity cash flows include obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed, or settling the obligation; and obtaining and paying for other resources obtained from creditors on long-term credit. Microsoft Corp.’s net cash from (used in) financing increased from 2016 to 2017 but then declined significantly from 2017 to 2018.
Net cash used in investing Amount of cash inflow (outflow) of investing activities, excluding discontinued operations. Investing activity cash flows include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment and other productive assets. Microsoft Corp.’s net cash used in investing declined from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level.