Valuation Techniques: Discounted Cash Flow, Earnings Quality, Measures of Value Added, and Real Options

APPENDIX 20A: SELECTED DISCLOSURES FROM DELL COMPUTER’S 2002 ANNUAL REPORT

Dell Computer Corporation

Consolidated Statement of Financial Position (in millions)

February 1, 2002	February 2, 2001
ASSETS
Current assets
Cash and cash equivalents	$3,641	$4,910
Short-term investments	273	525
Accounts receivable, net	2,269	2,424
Inventories	278	400
Other	1,416	1,467
Total current assets	7,877	9,726
Property, plant, and equipment, net	826	996
Investments	4,373	2,418
Other noncurrent assets	459	530
Total assets	$13,535	$13,670
LIABILITIES AND STOCKHOLDERS EQUITY
Current liabilities
Accounts payable	$5,075	$4,286
Accrued and other	2,444	2,492
Total current liabilities	7,519	6,778
Long-term debt	520	509
Other	802	761
Other commitments and contingent liabilities (Note 7)	—	—
Total liabilities	8,841	8,048
Stockholders equity
Preferred stock and capital in excess of $0.01 par value; shares issued and outstanding: none	—	—
Common stock and capital in excess of $0.01 par value; shares authorized: 7,000; shares issued: 2,654 and 2,601, respectively	5,605	4,795
Treasury stock, at cost; 52 shares and no shares, respectively	(2,249)	—
Retained earnings	1,364	839
Other comprehensive income	38	62
Other	(64)	(74)
Total stockholders equity	4,694	5,622
Total liabilities and stockholders equity	$13,535	$13,670

Dell Computer Corporation

Consolidated Statement of Income (in millions, ...