Question: Exercises in Assets, Liabilities, and Stockholders' Equity Hewlett-Packard (HP) is a leading direct marketer of computers and peripherals. The company made a profit of $7,074 million on sales of more than $127 billion in the year ended October 31, 2011.
1. On October 31, 2010, the end of HP's fiscal year, it had accounts receivable totaling $19,006 million on its books and, after subtracting estimated uncollectible accounts of $525 million, the company reported net accounts receivable of $18,481 million on its balance sheet. In fiscal 2011, accounts receivable before subtracting estimated uncollectibles decreased by $312 million and estimated uncollectible accounts decreased by $55 million. What amount was reported for net accounts receivable on HP's October 31, 2011, balance sheet?
2. HP began the 2011 fiscal year with approximately $2,447 million in its liabilities for warranties account. The company paid $2,653 million during the year to settle warranty claims, and it accrued warranty expenses of $2,657 million. What was the liability for warranties shown on HP's October 31, 2011, balance sheet?
3. Retained earnings at the end of fiscal 2010 were $32,695 million on HP's balance sheet. During fiscal 2011 HP's net income was $7,074 million and HP paid dividends of $834 million. In addition, repurchases of stock and other items decreased HP's retained earnings by $3,669 million. What was the balance in retained earnings in HP's October 31, 2011, balance sheet?