Prepare the Cash Flow Statement for Dell Technologies Inc. for January 29th 2021 using the Direct Method. DELL TECHNOLOGIES INC. CONSOLIDATED STATEMENTS OF INCOME (LOSS) 29TH JANUARY 2021 (in millions) Net Revenue 94,224 Cost of Net Revenue (64,807) Gross Margin 29,417 Operating Expenses: Selling, General & Admin 18,998 Depreciation Expense 5,275 Total Operating Expenses (24,273) Operating Profit 5,144 Interest Expense (1,474) Pretax Income 3,670 Income Tax Expense (165) Net Profit 3,505 DELL TECHNOLOGIES INC. CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (partial in millions) 29TH JANUARY 2021 31ST JANUARY 2020 ASSETS: Cash and cash equivalents 12,791 9,302 Accounts Receivables 12,788 12,484 Inventory 3,402 3,281 Property, Plant and Equipment 6,431 6,055 Goodwill 40,829 41,691 LIABILITIES: Accounts Payable 21,696 20,065 Accrued Liabilities 9,549 9,773 Long-term Debt 41,622 44,319 ADDITIONAL INFORMATION: Purchase of Investments 338 Proceeds from the Issuance of Common Stock 452 Repurchase of Common Stock 1,604 Sale of Investments 169 Acquisition of Business and Assets 424 Proceeds from Debt 16,391 Repayment of Debt 20,919
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
- Prepare the Cash Flow Statement for Dell Technologies Inc. for January 29th 2021 using the Direct Method.
DELL TECHNOLOGIES INC.
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
29TH JANUARY 2021
(in millions)
Net Revenue 94,224
Cost of Net Revenue (64,807)
Gross Margin 29,417
Operating Expenses:
Selling, General & Admin 18,998
Total Operating Expenses (24,273)
Operating Profit 5,144
Interest Expense (1,474)
Pretax Income 3,670
Income Tax Expense (165)
Net Profit 3,505
DELL TECHNOLOGIES INC.
CONSOLIDATED
(partial in millions)
29TH JANUARY 2021 31ST JANUARY 2020
ASSETS:
Cash and cash equivalents 12,791 9,302
Inventory 3,402 3,281
Property, Plant and Equipment 6,431 6,055
LIABILITIES:
Accounts Payable 21,696 20,065
Accrued Liabilities 9,549 9,773
Long-term Debt 41,622 44,319
ADDITIONAL INFORMATION:
- Purchase of Investments 338
- Proceeds from the Issuance of Common Stock 452
- Repurchase of Common Stock 1,604
- Sale of Investments 169
- Acquisition of Business and Assets 424
- Proceeds from Debt 16,391
- Repayment of Debt 20,919
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