Dell Inc., headquartered in Austin, Texas, is the global leader in selling computer products and services. The following is Dell’s (simplified) balance sheet from a recent year (fiscal year ending on Friday nearest January 31).

Assume that the following transactions (in millions) occurred during the remainder of 2012 (ending on February 1, 2013):
a. Borrowed $50 from banks due in two years.
b. Lent $300 to affiliates, who signed a six-month note.
c. Purchased additional investments for $13,000 cash; one-fifth were long term and the rest were short term.
d. Purchased property, plant, and equipment; paid $875 in cash and $1,410 with additional long-term bank loans.
e. Issued 1,000 additional shares of stock for $400 in cash.
f. Sold short-term investments costing $11,000 for $11,000 cash.
g. Dell does not actually pay dividends; it reinvests its earnings into the company for growth purposes.
Assume instead for this problem that Dell declared and paid $60 in dividends during 2012.

Required:
1. Prepare a journal entry for each transaction. Use the account titles in the Dell balance sheet.
2. Create T-accounts for each balance sheet account and include the February 3, 2012, balances. Post each journal entry to the appropriate T-accounts.
3. Prepare a balance sheet from the T-account ending balances for Dell at February 1, 2013, based on these transactions.
4. Compute Dell’s current ratio for 2012 (year ending on February 1, 2013). What does this suggest about thecompany?

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DELL INC Balance Sheet at Fehruary 3, 2012 (dollars in millions) ASSETS Current assets Cash Short-term investments Receivables and other assets Inventories Other $13,852 966 9,803 1,404 3,423 29,448 2,124 3,404 9,557 $44,533 Total current assets Property, plant, and equipment Long-term investments Other noncurrent assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: $11,656 10,345 22,001 13,615 35,616 Accounts payable Other short-term obligations Total current liabilities Long-term liabilities Total liabilities Stockholders' equity: Common stock (S0.01 par value) Additional paid-in capital Retained earmings Other stockholders' equity items 34 12,153 28,236 (31,506) 8,917 S44,533 Total stockholders' equity Total stockholders' equity and liabilities