*******Based on the information below are you optimistic or pessimistic regarding the future of Hewlett Packard and would you invest in stocks and/or bonds?Explain.

General Information:

1.What is the name of your corporation? Hewlett-Packard Company (HP INC.)

2.Where are the corporate headquarters? 1501 Page Mill Rd, Palo Alto, CA 94304

3.What is the corporations fiscal year end? October 31, 2015

4.What are the primary products or services of the corporation?

5.Graph the high and low price of the companys stock for each quarter of the last two years. What was the high and what was the low?

6.Who is the companys transfer agent and where are they located?

Wells Fargo Shareowner Services

P.O. Box 64874

South St. Paul, MN 55164-0874

800-286-5977 - U.S. callers

651-450-4064 - non-U.S. callers

7.Who are your companys competitors?

HP Incs two top competitors are International Business Machines Corporation and DELL Inc.

Market Information:

8.On which stock exchange is your corporations stock traded? New York Stock Exchange

9.What is the current market price of their stock? $14.07

10.What is the ticker symbol used to identify your corporation on the stock exchange? HPQ

Internet Information:

11.What is the Internet address of your corporation? Be sure it appears as a hyperlink. http://www.hp.com/

12.Is the corporations Annual Report online? Yes

13.Are its financial statements on-line? Yes

14.Is your company listed on Annualreports.com? Yes

15.How long is your companys 10-K report at the Securities and Exchange Commission website (Edgar Database)? 198 pages (https://www.sec.gov/Archives/edgar/data/47217/000104746915009251/a2226745z10-k.htm)

Cash Flow and Retained Earnings:

16.List the amount of cash flows from each of the 3 activities: Operating, Investing, and Financing for the 2 most recent years. What was the increase or decrease in cash for each of these years?

Operating: 2015- 6,490 million 2014- 12,333 million decrease

Investing: 2015- 5,534 million 2014- 2,792 million increase

Financing: 2015- 17,433 million 2014- 15,133 million increase

17.Were there any Non-Cash Investing/Financing Transactions? Describe the type and amount. Investment in property,plant,and equiptment: ($3603)

18.What is the dollar difference between accrual net income and Cash provided by Operations? Cash Provided by operations: $6490 Accrual Net Income: $4554

19.What investing activity provided the largest inflow of cash in the current year?

Land:$537

Buildings and leasehold improvements: $9,172

Machinery and equipment, including equipment held for lease: $16,766

20.What investing activity used the largest amount of cash in the current year? Machinery and equiptment including equiptment held for lease

21.What financing activity provided the largest inflow of cash in the current year? Minimum lease payments receivable: $7000

22.What financing activity used the largest amount of cash in the current year? Repayments of debt equally five billion.

23.Does the company have sufficient cash inflows from the appropriate category? Describe any problems the company many experience with cash flow from your analysis of the cash flow statement.

24.Show the change in Retained Earnings for the 2 most recent years. What was net income for each year? How much was paid out in dividends each year? Retained earnings $32,089-2015 $29,164-2014

Net Income:

Dividends 2015: 1250 2014: 1184 (in millions)

25.Were the dividends on common stock and/or preferred stock? What was the amount of each? The stockholders of HP common stock are entitled to receive dividends when and as declared by HP's Board of Directors. Dividends declared were $0.67 per common share in fiscal 2015, $0.61 per common share in fiscal 2014 and $0.55 per common share in fiscal 2013.

26.Did Retained Earnings change for any reasons other than net income or dividends? Explain. No

27.What classes of stock does your company have? Common and preferred

28.How many shares of each class of stock are authorized, how many are issued, and how many are outstanding? Authorized: 9600 million, Issued: 1804 million, and outstanding: 1839 million)

29.Does your company have any treasury stock? How many shares and what dollar amount?

30.What is the par or stated value of each of your companys stocks? $0.01

Footnote Disclosures:

31.How many footnote disclosures does your company have? none

32.How many significant accounting policies are listed under its Summary of Significant Accounting Policies? 30

33.What does it include as Cash and Cash Equivalents?

34.What method does it use to value Inventory? HP values inventory at the lower of cost or market. Cost is computed using standard cost which approximates actual cost on a first-in, first-out basis. Adjustments to reduce the cost of inventory to its net realizable value are made, if required, for estimated excess or obsolescence.

35.What method(s) does it use to depreciate its assets? Accumulated depreciation

36.Does it have any leased assets? If yes, describe them.Equiptment, property, properties

37.What policies does it have in regard to Foreign Currency Translations?

38.Describe any pending lawsuits in which it is involved.

Vincent Ho v. Margaret C. Whitman, et al. is a lawsuit filed on January 22, 2013 in California Superior Court alleging, among other things, that the defendants breached their fiduciary duties and wasted corporate assets in connection with HP's acquisition of Autonomy and by causing HP to repurchase its own stock at allegedly inflated prices between

Cook v. Whitman, et al. is a lawsuit filed on March 18, 2014 in the Delaware Chancery Court, alleging, among other things, that the defendants breached their fiduciary duties and wasted corporate assets in connection with HP's acquisition of Autonomy.

Autonomy Corporation Limited v. Michael Lynch and Sushovan Hussain. On April 17, 2015, four HP subsidiaries (Autonomy Corporation Limited, Hewlett Packard Vision BV, Autonomy Systems, Limited, and Autonomy, Inc.) initiated civil proceedings in the U.K. High Court of Justice against two members of Autonomy's former management, Michael Lynch and Sushovan Hussain.

39.Provide its Earnings per Share for the 2 most recent years?

For the fiscal years ended October 31
		2015			2014			2013
		In millions, except per share amounts
Numerator:
Net earnings(1)		$	4,554		$	5,013		$	5,113
Denominator:
Weighted-average shares used to compute basic net EPS			1,814			1,882			1,934
Dilutive effect of employee stock plans			22			30			16
Weighted-average shares used to compute diluted net EPS			1,836			1,912			1,950
Net earnings per share:
Basic		$	2.51		$	2.66		$	2.64
Diluted		$	2.48		$	2.62		$	2.62
Anti-dilutive weighted-average options(2)			23			26			52

Report of the Independent Auditor(s):

40.Who is/are your companys auditor(s)? Ernst & Young

41.Where are they located? London, United Kingdom

42.Does the auditor(s) give a qualified opinion, an unqualified opinion, a disclaimer of opinion, or an adverse opinion? What does that opinion mean? Is it good? They give a qualified opinion that all the materials covered and presented by HP are in conformity with the U.S. accounting principles.

43.What is the auditors responsibility in regard to the financial statements? To express an opinion on the financial statements based on their audits.

44.What is managements responsibility in regard to the financial statements? To maintain effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management's Report on Internal Control Over Financial Reporting.

45.What financial statements were included in the auditors opinion? Consolidated Statements of Earnings, Consolidated Statements of Comprehensive Income, Consolidated Balance Sheets, Consolidated Statements of Cash Flows, Consolidated Statements of Stockholders' Equity.

46.Did the auditor believe that the statements were presented fairly? Yes

Managements Report:

47.Who bears the responsibility for the integrity and the objectivity of the financial statements? Executive officers

48.What does management say they are doing to assure the public that the financial information is reliable? An audit committee is comprised of several members of the board of directors. The committee acts as the liaison between the independent auditor and the corporation.

49.What is the responsibility of the Audit Committee of the Board of Directors?

Discuss the audit report and verify its accuracy

I also have these completed in excel if needed.

Provide common-size analysis of your companys income statement and balance sheet for the 2 most recent years (must be done using Excel with formulas).

Provide horizontal analysis of your companys income statement and balance sheet, showing the dollar amount and percent of change using the 2 most recent years (you must use an Excel spreadsheet with formulas).

Perform ratio analysis on your company using the ratios listed in Exhibit 13.16 on page 529 of your text (these must be in an Excel spreadsheet, using formulas to calculate the ratios). You should present them in a similar format as the text: group by category, list name of ratio, formula in words, and the ratio calculation. Give a short explanation of your conclusions about your company after each category of ratios (i.e. How liquid is your company? How efficiently is it using its assets? etc.).