Hewlett-Packard and IBM are close competitors in the sale of computer products and technology consulting. Selected financial data for Hewlett-Packard and IBM are as follows:

Required:
1. Calculate the return on assets for both companies. Compare the ratios with those calculated for Apple and Dell in Illustration 11-21.
2. Calculate the cash return on assets for both companies. Compare the ratios with those calculated for Apple and Dell in Illustration 11-22.
3. Calculate the cash flow to sales ratio and the asset turnover ratio for both companies. Which company has the better ratios, Hewlett-Packard or IBM? Are Hewlett-Packard's and IBM's business strategies closer to Apple's or to Dell's?

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(S in millions) 2009 2008 Hewlett-Packard $114552 $1183 Net sales Net income Operating cash flows Total assets 7,660 13,379 114,799 $118,364 8,329 14,591 113,331 IBM Net sales Net income Operating cash flows 13,425 20,773 109,022 95,758 103,630 12,334 18,812 109,524 Total assets