10/06/2021
Théo BULGARELLI
Financial & Managerial Accounting | Loyola University New Orleans
Refer to Zoom Video Communications, Inc. Annual Report for Fiscal 2021. Answer the
following questions and perform the required analysis.
a. State the accounting equation at the beginning and end of the year and the changes
between the beginning and end of the year.
BEGINNING OF 2021
END OF 2021
CHANGES
ASSETS =
$1,289,845
$5,297,993
+ $4,008,148
LIABILITIES
$455,902
$1,437,226
+ $981,324
+ EQUITIES
$833,943
$3,860,767
+ $3,026,824
b. State the changes in the company’s equity during the year. Discuss any significant
changes.
The company’s equity increased by $3,026,824 during the year or +363%. This meteoric rise is
explained by an explosion of the company’s revenues. The crisis related to COVID19 and the
worldwide democratization of remote work is the major factor that explains this great
increase. Zoom has established itself as a leader.
These revenues have generated significant profits that have been converted into retained
