Review the 2009 balance sheet data for Hewlett-Packard (HP) and Dell shown below.
(In mllllons)................................................................Hewlett-Packard.............Dell
Current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $52,539................$24,245
Current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . .43,003.................18,960
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .74,282.................28,011
Total stockholders' equity. . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . 40,517..................5,641
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . 29,936..................22,110
1. Compute each company's current ratio for 2009. Based on the result, which company appears to be more liquid?
2. Compute each company's debt-to-equity ratio for 2009. Which company appears to have the most debt in relation to stockholders' equity?
3. Which company has a larger amount of long-term debt in its financing mix?
4. Why would HP have a larger amount in retained earnings at the end of 2009 relative to Dell?
5. How can Dell have $22,110 million in retained earnings and only $5,641 million of total stockholders' equity?