After observing an annual report of 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