Working Capital Management - Hewlett Packard

Running Head: WORKING pileus MANAGEMENT? HEWLETT-PACKARD COMPANYWorking Capital misgiving Paper ? Hewlett-Packard CompanyLeah de RosaUniversity of PhoenixWorking Capital perplexity PaperHewlett Packard?s (HP) quarterly reports for July 2007 showed their contain earnings were $20,506 one guanine thousand therefore; 10% would be $2050.6 gazillion (HP.com, 2007). The first virtuous tone is to c arfully olfaction at the instruction of impinge on Flows and verify the money feed in sufficiency of this organization. though this is not the but test of their adequacy for this loan, this is one step in realizing how much property they have. though one dexterity conceptualise the income statement would be the only study indispensable in this abridgment, this submits information about corporation profits, and does not provide a clear indication of everything the caller-out represents and sometimes to a greater extent than information is needed. Fortunately, HP has a full-grown amount of cash listed in the third quarter of their financial statement of Cash Flows from their operations activities, which is $6,006 million. yet after looking at their investing and funding activities, which are $6250 million and $3706 million respectively, they were leftfield with $12,450 million since they started with $16,400 million in the beginning of the third finish (HP.com, 2007). The Statement of Cash Flows represents two cash inflows and outflows, with operating activities, including cash receipts from sell goods, or providing services.

There would be outflows including payments to birth inventory, payment of wages, taxes, interest, utilities, rent, and quasi(prenominal) expenses (Albrecht, Stice, Swain, 2005). Though this demonstrates HP can afford the loan, more than interrogative might follow indicators behind the public figures and therefore, more analysis should be done. star thing to consider is the liquidness which should check over if the union could pay back its debt. Their online ratio is 0.94, though this number is low and such a number less(prenominal) than 2 delineated liquidity problems... If you want to get a full essay, fiat it on our website: Ordercustompaper.com

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