Understanding and Analyzing Dell’s Fiscal Year 2013 Financial Reporting For over 30 years Dell Incorporation has been elite when it comes to growth and sales. It generates roughly a little over one million dollars a day in sales. Dell provides the health care to information technology of its product. Here is a snapshot of the company’s history. The company was launched back in 1984 by Michael Dell. He started with $1000 and followed his dream to success. He guided the company from 1000 dollars to 85 million in a period of three years. Dell made its fortune 500 debut in 1992. Dell.com was launched in 1996 bringing in over one million dollars a day from sales. Dell became the number one computer system provider in 2001. In 2005
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They are normally in order on the balance sheet based on how quickly a company expects to convert them to cash. Dell’s current assets are posted as cash and cash equivalents, short-term investments, accounts receivable, short-term financing receivables, inventories, and other. Based on the information above Dell’s current assets are listed in the proper order of what can be converted to cash the quickest.
Dell’s assets are classified into the following categories: * Current Assets * Property, plant, and equipment, net * Long-term investments * Long-term financing receivables, net * Goodwill * Purchased intangible assets, net * Other non-current assets
These groupings help readers determine such things as whether the company has enough assets to pay its debts as they come due, and the claims of short- and long-term creditors on the company’s total assets (Kimmel, Weygandt, Kieso, 2009). On a company’s balance sheet under current assets they report their cash and cash equivalents. Cash equivalents are usually short term, highly liquid investments that can be converted to a specific amount of cash. For Dell’s fiscal year ending February 1, 2013 their cash and cash equivalents were $12,569,000,000. Changes in cash can come from investments, issuance of common stock, proceeds and/or repayments of a debt, dividends paid. Current liabilities are a debt that a company reasonably expects to pay (1) from existing