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

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015 Jun 30, 2014
Net income 39,240  16,571  21,204  16,798  12,193  22,074 
Asset impairments —  —  —  630  7,498  — 
Depreciation, amortization, and other 11,682  10,261  8,778  6,622  5,957  5,212 
Stock-based compensation expense 4,652  3,940  3,266  2,668  2,574  2,446 
Net recognized gains on investments and derivatives (792) (2,212) (2,073) (223) (443) (109)
Deferred income taxes (6,463) (5,143) (3,296) 332  224  (331)
Deferral of unearned revenue —  —  67,711  57,072  45,072  44,325 
Recognition of unearned revenue —  —  (57,735) (48,498) (44,920) (41,739)
Accounts receivable (2,812) (3,862) (925) (530) 1,456  (1,120)
Inventories 597  (465) 50  600  (272) (161)
Other current assets (1,718) (952) 1,066  (1,167) 62  (29)
Other long-term assets (1,834) (285) (539) (41) 346  (628)
Accounts payable 232  1,148  81  88  (1,054) 473 
Unearned revenue 4,462  5,922  —  —  —  — 
Income taxes 2,929  18,183  —  —  —  — 
Other current liabilities 1,419  798  386  (260) (624) 1,075 
Other long-term liabilities 591  (20) 1,533  (766) 1,599  1,014 
Changes in operating assets and liabilities 3,866  20,467  1,652  (2,076) 1,513  624 
Adjustments to reconcile net income to net cash from operations 12,945  27,313  18,303  16,527  17,475  10,428 
Net cash from operations 52,185  43,884  39,507  33,325  29,668  32,502 
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 
Repayments of debt (4,000) (10,060) (7,922) (2,796) (1,500) (3,888)
Common stock issued 1,142  1,002  772  668  634  607 
Common stock repurchased (19,543) (10,721) (11,788) (15,969) (14,443) (7,316)
Common stock cash dividends paid (13,811) (12,699) (11,845) (11,006) (9,882) (8,879)
Other, net (675) (971) (190) (369) 362  (39)
Net cash from (used in) financing (36,887) (33,590) 8,408  (8,393) (9,668) (8,665)
Additions to property and equipment (13,925) (11,632) (8,129) (8,343) (5,944) (5,485)
Acquisition of companies, net of cash acquired, and purchases of intangible and other assets (2,388) (888) (25,944) (1,393) (3,723) (5,937)
Purchases of investments (57,697) (137,380) (176,905) (129,758) (98,729) (72,690)
Maturities of investments 20,043  26,360  28,044  22,054  15,013  5,272 
Sales of investments 38,194  117,577  136,350  93,287  70,848  60,094 
Securities lending payable —  (98) (197) 203  (466) (87)
Net cash used in investing (15,773) (6,061) (46,781) (23,950) (23,001) (18,833)
Effect of foreign exchange rates on cash and cash equivalents (115) 50  19  (67) (73) (139)
Net change in cash and cash equivalents (590) 4,283  1,153  915  (3,074) 4,865 
Cash and cash equivalents, beginning of period 11,946  7,663  6,510  5,595  8,669  3,804 
Cash and cash equivalents, end of period 11,356  11,946  7,663  6,510  5,595  8,669 

Based on: 10-K (filing date: 2019-08-01), 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).

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 2017 to 2018 and from 2018 to 2019.
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 declined from 2017 to 2018 and from 2018 to 2019.
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 increased from 2017 to 2018 but then slightly declined from 2018 to 2019.