Review the 2007 balance sheet data for Hewlett-Packard (HP) and Dell shown below. 1. Compute each companys current ratio for
1. Compute each companys current ratio for 2007. Based on the result, which company appears to be more liquid?
2. Compute each companys 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 stockholdersequity?
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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