Working Capital Management - Hewlett Packard

Running Head: WORKING CAPITAL MANAGEMENT? HEWLETT-PACKARD COMPANYWorking nifty anxiety Paper ? Hewlett-Packard CompanyLeah de RosaUniversity of PhoenixWorking Capital Management PaperHewlett Packard?s (HP) every arse reports for July 2007 showed their carry earnings were $20,506 one thousand thousand therefore; 10% would be $2050.6 gazillion (HP.com, 2007). The first pure tone is to guardedly look at the instruction of coin Flows and verify the specie flow adequacy of this organization. though this is not the only turn out of their adequacy for this loan, this is one step in realizing how much interchange they have. Though one dexterity believe the income statement would be the only information indispensable in this abridgment, this submits information to the highest degree company profits, and does not provide a clear interpretation of everything the company represents and sometimes more than information is needed. Fortunately, HP has a large amount of cash list ed in the terce quarter of their Statement of Cash Flows from their operations activities, which is $6,006 meg. Even after feel at their investing and funding activities, which are $6250 million and $3706 million respectively, they were left with $12,450 million since they started with $16,400 million in the beginning of the third period (HP.com, 2007). The Statement of Cash Flows represents both cash inflows and outflows, with direct activities, including cash receipts from sell goods, or providing services.

There would be outflows including payments to purchase inventory, payment of wages, taxes, interest, uti lities, rent, and quasi(prenominal) expense! s (Albrecht, Stice, Swain, 2005). Though this demonstrates HP can buckle under the loan, more interrogative might find indicators behind the poetry and therefore, more analysis should be done. One thing to fence is the liquidity which should check over if the company could pay patronise its debt. Their current ratio is 0.94, though this number is low and much(prenominal) a number less(prenominal) than 2 represented liquidity problems... If you motive to get a full essay, order it on our website: BestEssayCheap.com

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