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