Companies in different industries often use different proportions of current ver
ID: 2560424 • Letter: C
Question
Companies in different industries often use different proportions of current versus long-terma to accomplish their business objective. The technology revolution resulting from the silicon mich chip has often been led by two well-known companies: Microsoft and Intel. Although often though of together, these companies are really very different. Using either the most current Forms 10-K annual reports for Microsoft Corporation and Intel Corporation, complete the following requin ments. To obtain the Forms 10-K, use either the EDGAR system following the instructions i Appendix A or the company's website. Microsoft's annual report is available on its website, Imel annual report is its Form 10-K ATC 6-3 Research Assignment Comparing Microsoft's and Intel's operational e Required a. Fill in the missing data in the following table. The percentages must be computed; they are a incladed in the companies' 10-Ks. (Note: The percentages for current assets and property, plant and equipment will not sum to 100) Current Assets Property, Plant and Equipment Total Assets Microsoft Dollar Amount %Of Total Assets Intel Dollar Amount %of otal Assets % Briefly explain why these two companies have different percentages of their assets in current assets versus b.Explanation / Answer
current assets
property plant and equipment
total assets
Microsoft
dollar amount
159,851,000
81235000
241,086,000
% of total assets
66.30%
33.70%
100%
Intel
dollar amount
35,508,000
77819000
113,327,000
% of total assets
31.33%
68.67%
100%
The basic difference in the composition of total assets into current assets and property palant and equipment is due to the nature of business they do. Intelhave more investment in long lived physical assets and low level of investment in current assets, while Microsoft due to its nature of business of service industry hace more investment in current assets and low in long lived assets
1-http://www.nasdaq.com/symbol/msft/financials?query=balance-sheet
2-http://www.nasdaq.com/symbol/intc/financials?query=balance-sheet
current assets
property plant and equipment
total assets
Microsoft
dollar amount
159,851,000
81235000
241,086,000
% of total assets
66.30%
33.70%
100%
Intel
dollar amount
35,508,000
77819000
113,327,000
% of total assets
31.33%
68.67%
100%
The basic difference in the composition of total assets into current assets and property palant and equipment is due to the nature of business they do. Intelhave more investment in long lived physical assets and low level of investment in current assets, while Microsoft due to its nature of business of service industry hace more investment in current assets and low in long lived assets
1-http://www.nasdaq.com/symbol/msft/financials?query=balance-sheet
2-http://www.nasdaq.com/symbol/intc/financials?query=balance-sheet
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