ACTIVITY 31 ANALYSIS OF HEWLETT-PACKARD COMPANY Purpose: - Understand and interpret amounts reported on the...
70.2K
Verified Solution
Link Copied!
Question
Accounting
ACTIVITY 31 ANALYSIS OF HEWLETT-PACKARD COMPANY Purpose: - Understand and interpret amounts reported on the income statement. Refer to the series of income stotements presented above to answer the following questions. Q1 Since 10/31/2007, sales revenue growth was $ million, which is a * change in sales revenue. The anhual revenue growth rate can be compared between companies. Assume less than 5W is low, 5 to 15N is moderate, ond mare than 15W is high The three year average revenue growh rate is considered (low / moderate / hich). Q2 Using 10/31/2007 as the base year, compute the trend index on 10/31/2010 for: a. Sales revenue trend index b. Cost of goods sold trend indes c. Gross profit trend index d. From 10/31/2007 to 10/31/2010, coos increased at a (creater / lesser) rate than sales revenue, which is considered (favorable / unfavorable). As a retult, gross profit margin will also (increase/decrease). Q3 Compute ROS (Net income / Sales revenue) for facal vears ended on: 10/31/2010 X; 10/31/2009 \& 10/31/2003 \$ 10/31/2007 8 The trend is (increasing / decreasing / steady, which is (favorable / unfavorable / neutral). Q4 Review all of the information presented above. If you had $10,000, would you consider investing in this compary? (Yes/No) Why
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!