HW2

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Unformatted text preview: indicated by a m inus sign. Om it the "$" sign in your response.) DELL INC. Balanc e Sheet at J anuary 29, 2010 (dollars in millions ) ASSETS Current As s ets Cas h Short­term inv es tments Rec eiv ables and other as s ets Inv entories Other c urrent as s ets Nonc urrent As s ets Property , plant, and equipment Long­term inv es tments Other nonc urrent as s ets Total as s ets LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Ac c ounts pay able $ Other s hort­term obligations Long­term liabilities Stockholders’ Equity Contributed c apital Retained earnings Other s toc k holders ' equity items Total s toc k holders ’ equity and liabilities 4,530 ± 0% 1,440 ± 0% 6,743 ± 0% 872 ± 0% 3,769 ± 0% 17,354 ± 0% 4,482 ± 0% 2,924 ± 0% 3,678 ± 0% $ 28,438 ± 0% $ 8,269 ± 0% 6,620 ± 0% 14,889 ± 0% 8,830 ± 0% 11,479 ± 0% 20,994 ± 0% ­27,754 ± 0% $ 28,438 ± 0% 5. awar d: 0.10 out of 0.10 points P2-5 Part 4 4. Compute Dell’s c urrent ratio for 2009 (y ear ending on J anuary 29, 2010). (Round your answer to 2 decim al places.) Current ratio 1.17 Worksheet Learning Objective: 02­02 Identify what constitutes a business transaction and recognize common balance sheet account titles used in business. Learning Objective: 02­05 Prepare a simple classified balance sheet and analyze the company using the current ratio. P2­5 Part 4 Learning Objective: 02­04 Determine the impact of business transactions on the balance sheet using two basic tools, journal entries and T­accounts. P2-5 Part 4 4. Compute Dell’s c urrent ratio for 2009 (y ear ending on J anuary 29, 2010). (Round your answer to 2 decim al places.) Current ratio 1.17 ± 0% Explanation: Current ratio = Current As s ets Current Liabilities = $17,354 = 1.17 $14,889 P3-4 Analyzing the Effects of T ransactions Using T -Accounts, Preparing F inancial Statements, and Evaluating the T otal Asset T urnover Ratio as a Manager [L O4 , 5 , 6 ] [The following information applies to the questions displayed below.] Brianna Webb, a c onnois s eur of fine c hoc olate, opened Bri’s Sweets in Collegetown on February 1, 2011. The s hop s pec ializ es in a s elec tion of gourmet c hoc olate c andies and a line of gourmet ic e c ream. You hav e been hired as manager. Your duties inc lude maintaining the s tore’s financ ial rec ords . The following trans ac tions oc c urred in February 2011, the firs t month of operations . a. Rec eiv ed four s hareholders ' c ontributions totaling $27,600 c as h to form the c orporation; is s ued s toc k . b. Paid three months ' rent for the s tore at $1,880 per month (rec orded as prepaid ex pens es ). c . Purc has ed and rec eiv ed c andy for $5,500 on ac c ount, due in 60 day s . d. Purc has ed s upplies for $1,430 c as h. e. Negotiated and s igned a two­y ear $11,000 loan at the bank . f. Us ed the money from (e) to purc has e a c omputer for $2,750 (for rec ordk eeping and inv entory trac k ing); us ed the balanc e for furniture and fix tures for the s tore. g. Plac ed a grand opening adv ertis ement in the loc al paper for $500 c as h....
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This homework help was uploaded on 02/23/2014 for the course BUSE 30000 taught by Professor N/a during the Winter '12 term at UChicago.

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