In groups of three or four, find the latest annual report for Microsoft Corporation. The annual report can be found on the company’s Web site at www.microsoft.com/msft/defaul.mspx.
The notes to the financial statements include details of Microsoft’s investments. Find the notes that provide details of its investments (Note 4) and the income from its investments (Note 3).
From these disclosures, answer the following questions:
1. What is the total cost of investments?
2. What is the fair value (recorded value) of investments?
3. What is the total unrealized gain from investments?
4. What is the total unrealized loss from investments?
5. What percent of total investments (at fair value) are:
a. Cash and equivalents
b. Short-term investments
c. Equity and other investments (long term)
6. What was the total combined dividend
 and interest revenue?
7. What was the recognized net gain or loss from sale of investments?
 

(In millions)

Cost
Basis

Unrealized
Gains

Unrealized
Losses

Recorded
Basis

Cash

and Cash
Equivalents

Short-Term
Investments

Equity and Other
Investments

June 30, 2009

Cash............................................................

$ 2,064

$ -

$ -

$ 2,064

$ 2,064

$ -

$ -

Mutual funds..............................................

 1,007

-

(25)

982

900

82

-

Commercial paper.......................................

 2,601

-

-

2,601

400

2,201

-

Certificates of deposit................................

 555

-

-

555

275

280

-

U.S. Government and Agency securities...

 13,450

 21

(5)

13,466

2,369

11,097

-

Foreign government bonds.........................

 3,450

 71

(4)

3,517

-

3,517

-

Mortgage-backed securities........................

 3,353

81

(16)

3,418

-

3,418

-

Corporate notes and bonds.........................

 4,361

287

(52)

4,596

-

4,596

-

Municipal securities....................................

 255

 2

(1)

256

68

188

-

Common and preferred stock.....................

 4,015

627

(182)

4,460

-

-

4,460

Other investments.......................................

465

-

-

465

-

(8)

473

Total.........................................................

$35,576

$ 1,089

$(285)

$36,380

$ 6,076

$25,371

$ 4,933

(In millions)
Year Ended June 30,

2009

2008

2007

Dividends and interest.....................................................................

$ 706

$ 888

$1,319

Net recognized gains (losses) on investments..................................

(125)

346

650

Net gains (losses) on derivatives......................................................

(558)

226

(358)

Net gains (losses) on foreign currency remeasurements...................

(509)

226

56

Other................................................................................................

(56)

(143)

(4)