Dell's Case Dell's Income Statement Fiscal Year 1996 1995 1994 1993 1992
1. Standing in 1996 with growth at 50% can Dell internally fund 50% increase in sells in 1997? Sales $5,296 $3,475 $2,873 $2,014 $890
1997 Cost of Sales 4,229 2,737 2,440 1,565 608
So 5,296 Gross Margin 1,067 738 433 449 282 g 0.50 Operating Expenses 690 489 472 310 215
S1 7,944 Operating Income 377 249 (39) 139 67 g(s) 2,648 Financing & Other Income 6 (36) - 4 7
A*o 2,148 Income Taxes 111 64 (3) 41 23
A*o/So 0.41 Net Profit 272 149 (36) 102 51
Lo* 939
Lo*/So 0.18 Dell's Balance Sheet
PM 0.051359517 Year Ended
Retention 0.952206 January 28, January 29, January 30, 1996 1995 1994 Projected Current Assets:
Asset 1,085.68 Cash 55 43 3
Current Liabilities 476.64 Short Term Investments 591 484 334
Retained Earnings 378.22 Account Receivables, net 726 538 411
AFN 230.82 Inventories 429 293 220 Other 156 112 80 Total Current Assets 1,957 1,470 1,048 Property, Plant, & Equipment, net 179 117 87 Other 12 7 5 Total Assets 2,148 1,594 1,140 Current Liabilities: Account Payable 466 403 NA Accrued and Other Liabilites 473 349 NA Total Current Liabilities 939 752 538 Long Term Debt 113 113 100 Other Liabilities 123 77 31 Total Liabilities 1,175 942 669 1.50 Stockholders' Equity:
Pro forma Balance Sheet Adjusted Pro forma Preferred Stock 6 120 NA 1996 1997 for 1997 Common Stock 430 242 NA
Cash 55 83 83 Retained Earnings 570 311 NA
Short Term Investments 591 591 591 Other (33)