After observing an annual report for MicrosoftCorporation, I saw that the company has more than enough assets to cover it’sliabilities. All of the information needed to calculate the shareholders equityis available on a balance sheet. Retain earning swill be a short-term asset,which means that it is held with stocks and bonds.  Over the years the common stock paid incapital in Microsoft Corporation has increased.

After subtracting theliabilities from the assets, you will get the shareholders equity. Once longterm and short term are figured out you will then subtract for commuting theshareholders’ section of the balance sheet. After observing this part of thebalance sheet, the numbers have risen with in a year.