Question

Report and evaluate the cash position of Microsoft for the past 2 years based on your understanding of the report. Provide a detailed rationale on whether you would lend money to this company if you were a creditor.

                                                               June 30, 2019 June 30 2018

Changes in operating assets and liabilities 3,866                20,467

Adjustments to reconcile net income to     12,945              27,313

net cash from operations

Net cash from operations                52,185               43,884

Net cash from (used in) financing (36,887)              (33,590)

Net cash used in investing           (15,773)              (6,061)

Net change in cash and cash equivalents (590)    4,283

Cash and cash equivalents, end of period 11,356          11,946

Answer 1

	June 30, 2019	June 30 2018	Change	Change %age
Changes in operating assets and liabilities	$       3,866.00	$   20,467.00	$ -16,601.00	-81.11%
Adjustments to reconcile net income to net cash from operations	$    12,945.00	$   27,313.00	$ -14,368.00	-52.60%
Net cash from operations	$    52,185.00	$   43,884.00	$      8,301.00	18.92%
Net cash from (used in) financing	$   -36,887.00	$ -33,590.00	$    -3,297.00	9.82%
Net cash used in investing	$   -15,773.00	$    -6,061.00	$    -9,712.00	160.24%
Net change in cash and cash equivalents	$         -590.00	$      4,283.00	$    -4,873.00	-113.78%
Cash and cash equivalents, end of period	$    11,356.00	$   11,946.00	$        -590.00	-4.94%

Positive and increasing cash flow from operating activities indicates that the core business activities of the company are flourishing

The Transactions which make Cash flow from Financing negative are

1) Paying of Dividends

2) Repaymnet of Debt

3) Stock Repurchase

Negative Cash Flow from Investing Indicates that the company is Investing heavily on in Fixed Assets - indicating that the company is a growing company.

Now as Changes in operating assets and liabilities is a negative figure indicating that the days of accounts payable are falling. Therefore as a creditor one should lend money to the company.