Review the 2007 balance sheet data for Hewlett-Packard (HP) and Dell shown below.

1. Compute each company€™s current ratio for 2007. Based on the result, which company appears to be more liquid?
2. Compute each company€™s debt-to-equity ratio for 2007. Which company appears to have the most debt in relation to stockholders€™ equity?
3. Which company has a larger amount of long-term debt in its financing mix?
4. Why would HP have a larger amount in retained earnings at the end of 2007 relative to Dell?
5. How can Dell have $18,199 million in retained earnings and only $3,735 million of total stockholders€™equity?

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(in millions) Hewlett-Packard Dell Current assets.. Current liabilities Total liabilities Total stockholders' equity Retained earnings $47.402 39.260 50.173 38,526 21,560 $19,880 18,526 23,732 3,735 18,199