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Use the data from the attached chart to calculate MSFT's net profit for FY2022.

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

Select one:

A. \$[/tex]70.4 billion

B. \[tex]$74.4 billion

C. \$[/tex]46.5 billion



Answer :

GinnyAnswer
To determine Microsoft's net profit for FY2022, we need to follow these steps:

1. Identify the key financial figures provided:
- Revenue: \[tex]$198.3 billion - Cost of Goods Sold (COGS): \$[/tex]62.7 billion
- Interest Expense: \[tex]$2.0 billion - Selling, General, and Administrative (SG&A) Expense: \$[/tex]27.7 billion
- Research & Development (R&D) Costs: \[tex]$24.5 billion - Income Taxes: \$[/tex]11.0 billion

2. Calculate the total expenses by summing up the individual expense items:
- Total Expenses = Cost of Goods Sold + Interest Expense + SG&A Expense + R&D Costs + Income Taxes
- Total Expenses = \[tex]$62.7 billion + \$[/tex]2.0 billion + \[tex]$27.7 billion + \$[/tex]24.5 billion + \[tex]$11.0 billion 3. Adding up these expenses: - Total Expenses = \$[/tex]62.7 billion + \[tex]$2.0 billion + \$[/tex]27.7 billion + \[tex]$24.5 billion + \$[/tex]11.0 billion
- Total Expenses = \[tex]$127.9 billion 4. Subtract the total expenses from the revenue to find the net profit: - Net Profit = Revenue - Total Expenses - Net Profit = \$[/tex]198.3 billion - \[tex]$127.9 billion - Net Profit = \$[/tex]70.4 billion

Therefore, the correct answer is:

A. \$70.4 billion

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