Recent balance sheets are provided for Dell, Inc., a leading producer and marketer of a broad range of personal computers, mobility products, software, and related tools and services.

Required:

1. Is Dell a corporation, sole proprietorship, or partnership? Explain the basis of your answer.

2. Use the company’s balance sheet (consolidated statement of financial position) to determine the amounts in the accounting equation (A = L + SE) at the end of the most recent year.

3. Calculate the company’s current ratio on February 3, 2012. Interpret the ratio that you calculated. What other information would make your interpretation more useful?

4. Prepare the journal entry the company will make in 2012 when it pays its fiscal year 2011 accounts payable (fiscal year 2011 ends on February 3, 2012).

5. Does the company appear to have been profitable over its years in business? On what account are you basing your answer? Assuming no dividends were paid, how much was net income (or net loss) in the most recent year? If it is impossible to determine without an income statement, stateso.

DELL INC Consolidated Statements of Financial Position (dollars in millions) February 3,2012 January 28,2011 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities $2,867 11,656 3,934 3,544 22,001 6,387 3,836 3,392 $ 851 11,293 4,181 3.158 19,483 5,146 3,518 2,686 30,833 Short-term debt Accounts payable Accrued and other liabilities Deferred service revenue Total current liabilities Long-term debt Long-term deferred service revenue Other noncurrent liabilities Total liabilities 35,616 Stockholders' equity Contributed capital Retained earnings Other 12,187 28,236 (31,506) 8,917 $44,533 11,797 24,744 28,775) 7,766 $ 38.599 Total stockholders' equity