Following Are Dell's Condensed Consolidated Statement of Financial Position and Condensed

question 38

Essay

Following are Dell's condensed consolidated statement of financial position and condensed consolidated statement of operations, in millions (unaudited).


a. Assume all net revenue are from credit sales. Using the above information, calculate the following ratios for FY05 to FY02:
1. Current ratio
2. Quick ratio
3. Working capital
4. Days' sales in accounts receivable
5. Days' sales in inventory
6. Days' purchases in accounts payable
7. Net days' working capital
8. Long-term debt to assets ratio
9. Total debt-to-equity ratio
10. Total liabilities to total assets

Note: Use average inventory, average accounts receivable, and average accounts payable in the calculation of days' sales in inventory, days' sales in accounts receivable, and days' purchases in accounts payable respectively.

b. Comment on the changes to Dell's liquidity risk
c. Comment on the changes to Dell's solvency risk

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