Use the following information from the financial statements of Hewlett-Packard Company (HP) to answer the questions: 1.

Question:

Use the following information from the of Hewlett-Packard Company (HP) to answer the questions:

Use the following information from the financial statements of Hewlett-Packard

1. Does HP have significant credit sales? If so, what evidence supports your opinion?
2. Sales for the fiscal year ending on October 31, 2008, were $117,994 (in millions). Compute the accounts receivable turnover ratio and comment on what it tells you about HP€™s credit and collection policies.
3. Can you tell what bad debts expense was for the fiscal year ending October 31, 2008?Explain.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...