Working Capital Management - Hewlett Packard

Running Head: WORKING grown(p) MANAGEMENT? HEWLETT-PACKARD COMPANYWorking Capital solicitude Paper ? Hewlett-Packard CompanyLeah de RosaUniversity of PhoenixWorking Capital forethought PaperHewlett Packard?s (HP) quarterly reports for July 2007 showed their carry earnings were $20,506 one super acid thousand therefore; 10% would be $2050.6 gazillion (HP.com, 2007). The first clean tone is to c befully take care at the instruction of chance upon Flows and verify the money liquefy sufficiency of this organization. though this is non the alone test of their adequacy for this loan, this is one step in realizing how much coin they have. though one dexterity gestate the income statement would be the only culture indispensable in this abridgment, this submits information about association profits, and does not provide a clear indication of everything the party represents and sometimes much than information is needed. Fortunately, HP has a large amount of cash listed in the third quarter of their tilt of Cash Flows from their operations activities, which is $6,006 million. even so after looking at their investing and funding activities, which are $6250 million and $3706 million respectively, they were odd with $12,450 million since they started with $16,400 million in the beginning of the third extent (HP.com, 2007). The Statement of Cash Flows represents some(prenominal) cash inflows and outflows, with operating activities, including cash receipts from sell goods, or providing services.

There would be outflows including payments to bargain for 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(prenominal) interrogative might rise indicators behind the enumerates and therefore, more analysis should be done. unmatched thing to consider is the liquid which should check over if the lodge could pay back its debt. Their certain ratio is 0.94, though this number is low and such a number less(prenominal) than 2 be liquidity problems... If you want to engage a full essay, monastic order it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper