The following data (amounts in millions) are taken from the January 30, 2009, and February 1, 2008,

Question:

The following data (amounts in millions) are taken from the January 30, 2009, and February 1, 2008, comparative financial statements of Dell Inc. , a direct marketer and distributor of personal computers (PCs) and PC-related products:


The following data (amounts in millions) are taken from the



The following data (amounts in millions) are taken from the


At February 2, 2007, total assets were $25,635 and total stockholders' equity was $4,328.
a. Calculate Dell, Inc.'s , working capital, current ratio, and acid-test ratio at January 30, 2009, and February 1, 2008. Round your ratio answers to two decimal places.
b. Calculate Dell's ROE for the years ended January 30, 2009, and February 1, 2008. Round your ratio answers to two decimal places, and your percentage answers to one decimal place.
c. Calculate Dell's ROI, showing margin and turnover, for the years ended January 30, 2009, and February 1, 2008. Round your ratio answers to two decimal places and your percentage answers to one decimal place.
d. Evaluate the company's overall liquidity and profitability.
e. Dell, Inc. , did not declare or pay any dividends during the years ended January 30, 2009, or February 1, 2008. What do you suppose is the primary reason for this?
Optional continuation of Case 3.18'trend analysis
The following historical data were derived from Dell, Inc.'s, consolidated financial statements (in millions).


The following data (amounts in millions) are taken from the


f. Are the trends expressed in these data generally consistent with each other?
g. In your opinion, which of these trends would be most meaningful to a potential investor in common stock of Dell, Inc.? Which trend would be least meaningful?
h. What other data (trend or otherwise) would you like to have access to before making an investment in Dell,Inc.?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Accounting What the Numbers Mean

ISBN: 978-0073527062

9th Edition

Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,

Question Posted: