After observing an annual report for Microsoft
Corporation, I saw that the company has more than enough assets to cover it’s
liabilities. All of the information needed to calculate the shareholders equity
is 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 in
capital in Microsoft Corporation has increased. After subtracting the
liabilities from the assets, you will get the shareholders equity. Once long
term and short term are figured out you will then subtract for commuting the
shareholders’ section of the balance sheet. After observing this part of the
balance sheet, the numbers have risen with in a year.