The purpose of this project is to practice the skill of reading, understanding and analyzing the balance sheet and related notes you have learned from Chapter 3. Please use the 1998 Hewlett Packard (HP) annual report for this assignment. Look it up on HP's web page. Please type and make your write-up as precise as possible!

1. What is the fiscal year-end for HP? Is HP's balance sheet in "account form" or "report form"? How do you know HP is a corporation by looking at its balance sheet?

2.Common Size Balance Sheet:
Please enter HP's1998 and 1997 balance sheet data into a spreadsheet and calculate the percentage of each item over total assets. Based on these percentages, please identify
a. the most significant asset item,
b. the most significant liability item, and
c. the most significant shareholders' equity item for HP.

3.Ratios Analysis:
Please use HP's 1998 data to calculate the following ratios:
current ratio
quick ratio
debt ratio
asset turnover ratio
return on equity
book-to-market ratio

For the market value, please use HP's closing price ($60.25) and number of outstanding shares at 1998 year-end. Comparing these ratios with industry averages, please discuss the overall financial condition and profitability of HP. (Note that HP belongs to the "computer and office equipment" industry with SIC being "3570".) You might find the following references in the library useful:
Industry norms and key business ratios, by Dun & Bradstreet Credit Services
Statement studies, by Robert Morris Associates
Almanac of business and industrial financial ratios, by Leo Troy

4. Notes and Supplementary information: Please give an example from HP's notes (including the title of the note and its page number) to financial statements for the following disclosures.
(1) summary of significant accounting policies
(2) additional information to support summary totals found on the financial statements
(3) information about items that are not reported on the financial statements
(4) supplementary information required by the FASB or the SEC

5.Subsequent events:
Does HP have any disclosure about subsequent events? If yes, what are they?