Question

Use the income statement for Microsoft Corporation to compute the following: Tax shield The tax on operating profit NOPAT The company's combined federal and state statutory tax rate is 37.0%. MICROSOFT CORP. Income Statement June 30, 2015 (in millions) Revenue Product $75,956 Service $17,624 Total revenue $93,580 Cost of revenue Product $21,410 Service and other $11,628 Total cost of revenue $33,038 Gross margin $60,542 Research and development $12,046 Sales and marketing $15,713 General and administrative $4,611 Impairment, integration, and restructuring $10,011 Operating income $18,161 Other nonoperating income (expense) Interest income $766 Gains on investments $716 Interest expense ($781) Losses on derivatives and other nonoperating expenses ($355) Income before taxes $18,507 Provision for income taxes $6,314 Net income $12,193

          Use the income statement for Microsoft Corporation to compute the following:

Tax shield
The tax on operating profit
NOPAT

The company's combined federal and state statutory tax rate is 37.0%.

MICROSOFT CORP.
Income Statement
June 30, 2015
(in millions)

Revenue
    Product
$75,956
    Service
$17,624
Total revenue
$93,580

Cost of revenue
    Product
$21,410
    Service and other
$11,628
Total cost of revenue
$33,038

Gross margin
$60,542

Research and development
$12,046
Sales and marketing
$15,713
General and administrative
$4,611
Impairment, integration, and restructuring
$10,011

Operating income
$18,161

Other nonoperating income (expense)
    Interest income
$766
    Gains on investments
$716
    Interest expense
($781)
    Losses on derivatives and other nonoperating expenses
($355)

Income before taxes
$18,507

Provision for income taxes
$6,314

Net income
$12,193

use the income statement for microsoft corporation to compute the following tax shield the tax on operating profit nopat the companys combined federal and state statutory tax rate is 370 mic 66999

Added by Laura G.

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