Refer to AP2€“ 5.

In Refer 5

Dell Inc. is a leading global provider of computer products and services for both the consumer and enterprise markets. Dell offers a full line of desktop and notebook PCs, network servers, workstations, storage systems, printers, handheld computers, digital music players, LCD and plasma televisions, and projectors. The following is Dell€™s (simplified) statement of financial position from a recent year:

Assume that the following transactions (in millions of dollars) occurred in fiscal year 2013 (ending on February 2, 2013):
a. Issued additional shares for $ 200 in cash.
b. Borrowed $ 300 from banks; due in two years.
c. Purchased additional investments for $ 7,500 cash; one- fifth were long term and the rest were short term.
d. Purchased property, plant, and equipment; paid $ 4,650 in cash and $ 850 with additional long-term bank loans.
e. Lent $ 250 to associated companies that signed a six- month note.
f. Sold short- term investments costing $ 5,000 for $ 5,000 cash.
Required:
Based on the transactions that occurred in fiscal year 2013, prepare the investing and financing sections of Dell€™s statement of cash flows for that year.

Transcribed Image Text:

DELL INC Statement of Financial Position At February 3, 2012 (in millions of U.S. dollars) ASSETS Current assets Cash and cash equivalents Short-term investments Receivables Inventories Other assets $13,852 966 9,803 1.404 3,423 29,448 Total current assets Non-current assets Property, plant, and equipment, net Long-term investments Long-term receivables Goodwill Other non-current assets 2,124 3,404 1,372 5,838 2.347 $44,533 Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Short-term borrowings Accounts payable Deferred services revenue Accrued liabilities 2,867 11,656 3,544 3.934 22,001 Total current liabilities Non-current liabilities Long-term borrowings Deferred services revenue Other liabilities 6,387 3,836 3,392 35,616 8,917 $44,533 Total liabilities Shareholders' equity Total liabilities and shareholders' equity