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Microsoft History

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Background

The beginning of Microsoft Inc. started with Bill Gates and Paul Allen writing computer program code for local businesses and municipalities. In 1975 they were inspired by an issue of Popular Electronics that showed the new Altair microcomputer kit, manufactured by MITS Computer. Bill Gates and Paul Allen wrote a version of BASIC, a computer programming language, for the machine. Later that year Bill Gates left Harvard University to work full time developing programming languages for the Altair, and he and Paul Allen relocated to Albuquerque, New Mexico, to be near MITS Computer, where Paul Allen took a position as director of software development. Bill Gates and Paul Allen named their partnership Micro-soft (Microsoft …show more content…

They encourage professional development by reimbursing tuition and textbook fees for approved work-related courses (Microsoft.com, 2008).
Financial
INCOME STATEMENTS
(In millions, except per share amounts)
Year Ended June 30 2007 2006 2005

Revenue $51,122 $44,282 $39,788
Operating expenses: Cost of revenue 10,693 7,650 6,031 Research and development 7,121 6,584 6,097 Sales and marketing 11,455 9,818 8,563 General and administrative 3,329 3,758 4,536
Total operating expenses 32,598 27,810 25,227
Operating income 18,524 16,472 14,561
Investment income and other 1,577 1,790 2,067
Income before income taxes 20,101 18,262 16,628
Provision for income taxes 6,036 5,663 4,374
Net income $14,065 $12,599 $12,254

Earnings per share: Basic $001.44 $001.21 $001.13 Diluted $001.42 $001.20 $001.12

Weighted average shares outstanding: Basic 9,742 10,438 10,839 Diluted 9,886 10,531 10,906

Cash dividends declared per common share $000.40 $000.35 $003.40

Attached is an Income Statement from 2005 to 2007 (Microsoft Corporation Annual Report, 2008). As you can see, revenues and net income have continued to increase over the years. Earnings per share have increased as well. This shows that Microsoft is in a good financial standing. This means they are able to pay their shareholders and increase what they

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