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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: Charles Tutt who wrote (67442)	4/16/2002 4:10:24 PM
From: Brian Sullivan	Read Replies (2) \| Respond to of 74651

Retained earnings are just earnings that are due to be credited to a future quarter so they naturally decline towards zero. (Offset by any new credits for retained earnings) Cash accumulates interest so it grows.

To: Charles Tutt who wrote (67442)	4/16/2002 4:33:36 PM
From: Exacctnt	Read Replies (1) \| Respond to of 74651

<<<<Did you ever wonder how Microsoft ended up with so much less retained earnings than cash?>>>> Charles, If you look at MSFT's Stockholders' Equity Statements in the Form 10-K you'll notice a line in the Retained Earnings account attributable to Common stock repurchased in the amounts of -$2.9B, -$4.7B, -$5.7B for the respective 1999 2000 2001 periods. That's the reason the RE balance seems small. MSFT's equity section disclosure definitely needs to be improved.