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Use the data from the attached chart to calculate MSFT's operating income for FY2022.

\begin{tabular}{|c|c|}
\hline \multicolumn{2}{|c|}{ Microsoft (MSFT) FY2022 } \\
\hline Revenue: & [tex]$\$[/tex] 198.3 \text{ B}[tex]$ \\
\hline Cost of Goods Sold: & $[/tex]\[tex]$ 62.7 \text{ B}$[/tex] \\
\hline Interest Expense: & [tex]$\$[/tex] 2.0 \text{ B}[tex]$ \\
\hline SG\&A Expense: & $[/tex]\[tex]$ 27.7 \text{ B}$[/tex] \\
\hline R\&D Costs: & [tex]$\$[/tex] 24.5 \text{ B}[tex]$ \\
\hline Income Taxes: & $[/tex]\[tex]$ 11.0 \text{ B}$[/tex] \\
\hline Capital Expenditures: & [tex]$\$[/tex] 23.9 \text{ B}[tex]$ \\
\hline
\end{tabular}

Select one:
A. $[/tex]\[tex]$ 107.9 \text{ B}$[/tex]
B. [tex]$\$[/tex] 83.4 \text{ B}[tex]$
C. $[/tex]\[tex]$ 81.4 \text{ B}$[/tex]



Answer :

GinnyAnswer
To calculate Microsoft's (MSFT) operating income for FY2022, we need to follow these steps using the given financial data:

1. Identify the revenue:
- Revenue: \[tex]$198.3 billion 2. Identify and sum up the expenses that affect operating income: - Cost of Goods Sold (COGS): \$[/tex]62.7 billion
- SG&A Expense (Selling, General, and Administrative Expense): \[tex]$27.7 billion - R&D Costs (Research and Development Costs): \$[/tex]24.5 billion

3. Calculate the operating income:
- Operating Income = Revenue - COGS - SG&A Expense - R&D Costs

Now let's fill in the values and perform the calculation:

[tex]\[ \text{Operating Income} = 198.3 - 62.7 - 27.7 - 24.5 \][/tex]

Breaking it down:
- Subtract COGS from Revenue:
[tex]\[ 198.3 - 62.7 = 135.6 \][/tex]
- Subtract SG&A Expense from the result:
[tex]\[ 135.6 - 27.7 = 107.9 \][/tex]
- Subtract R&D Costs from the result:
[tex]\[ 107.9 - 24.5 = 83.4 \][/tex]

So, the Operating Income is:

[tex]\[ \text{Operating Income} = \$83.4 \text{ billion} \][/tex]

Therefore, the correct answer is:

B. \$83.4 billion

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