The following information was taken from one of Hewlett-Packard Company’s recent balance sheets. Hewlett-Packard is a major designer and manufacturer of electronic measurement and computing equipment, including workstations, PCs, and laser printers.

Required:
1. Use the information in the problem to determine the missing amounts, and present Hewlett-Packard’s balance sheet in good form.
2. Does Hewlett-Packard obtain financing primarily from stockholders or from creditors?
Explain.
3. What is Hewlett-Packard’s largest current asset?
4. What is Hewlett-Packard’s largest current liability?

5. Calculate the ratio of Hewlett-Packard’s current assets to current liabilities, and comment on Hewlett-Packard’s short-term liquidity position.
6. Hewlett-Packard’s balance sheet lists an item called Other current assets. What assets might be included under this heading?

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($ in millions) Total liabilities and shareholders' equity Inventories: Finished goods Other current assets Employee compensation and benefits payable $ 1,100 347 837 Total current assets 6,716 Land ? Total shareholders' equity 7,269 Long-term debt Machinery and equipment 2,792 Taxes payable 381 Long-term receivables and other assets 1,912 Other long-term liabilities 210 Cash and cash equivalents 625 Total assets 11,973 Notes payable and short-term borrowings ? Deferred revenues (current) 375 Short-term investments 495 Buildings and leasehold improvements 2,779 Total current liabilities 4,063 Inventories: Purchased parts and fabricated assemblies 1,173 Deferred taxes payable 243 Common stock and capital in excess of $1 par value, 1,010 Accumulated depreciation 2,616 Other accrued liabilities 583 Retained earnings ? Accounts and notes receivable ? Accounts payable 686