Refer to the financial statements and related disclosure notes of Dell located in the company's 2009 annual report included with all new copies of the text. They also can be found at www.dell.com. At the end of its 2009 fiscal year, Dell reported current liabilities of $14.9 billion in its balance sheet.

Required:

1. What are the four components of current liabilities?

2. Are current assets sufficient to cover current liabilities? What is the current ratio for 2009? How does the ratio compare with 2008?

3. Dell reported short-term deferred revenue among its current liabilities. That deferred revenue is associated with extended warranty and service contracts. Is that deferred revenue likely to require Dell to pay cash in order to reduce that liability? Explain.