Name: Issam Tamer

ID number: 202472487
ENMG602 – Introduction to Financial Engineering

This assignment investigates the financial reports of Dell Technologies. The reports are available on the Securities
and Exchange Commission (SEC) website for Electronic Data Gathering and Reporting (EDGAR). The10-K annual
financing report for Dell Technologies, published on March 2023, is available here.

a. The auditor of Dell Technologies is PricewaterhouseCoopers (PwC). PwC served as Dell Technologies’ auditor
since 1986.
b. Yes, there are unusual statements in the auditor’s report. PwC mentioned that Dell Technologies’ contracts
with customers often included distinct promises to transfer multiple goods and services such as hardware,
software licenses, and support and maintenance agreements. Distinct promises in a contract are called
performance obligations and should be accounted for as separate units of accounts. Performance
obligations are sometimes separable from other aspects of the contractual relationship between the
company and its customers.
c. The balance sheet of Dell Technologies is called Consolidated Statement of Financial Position.
d. The date of the company’s most recent annual balance sheet is February 3, 2023.
e. The income statement of Dell Technologies is called Consolidated Statement of Income.
f. Dell Technologies’ most recent income statement covers the period from January 29, 2021, to February 3,
2023.
g. The cash flow statement of Dell Technologies is called Consolidated Statement of Cash Flows.
h. Dell Technologies’ most recent cash flow statement covers the period from January 29, 2021, to February 3,
2023.
i. The company’s major reported assets, listed from highest to lowest value, are as follows: goodwill, account
receivable, cash and cash equivalent, intangible assets, property, plant, and equipment, and short-term
financing receivables.
j. The company’s major reported liabilities, listed from highest to lowest value, are as follows: long-term debt,
accounts payable, short-term deferred revenue, long-term deferred revenue, accrued and other, and short-
term debt.
k. The company’s major sources of revenues are products, and services.

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l. The revenue recognition policy for Dell Technologies includes 5 steps: (1) Identify the contract with the
customer, (2) Identify the performance obligation in the contract, (3) Determine the transaction price, (4)
Allocate the transaction price to performance obligation in the contract, (5) Recognize revenue when the
performance obligation is satisfied. These steps are summarized below.

1. Identify the contract with the customer: The Company evaluates facts and circumstances regarding
sales transactions to identify contracts with its customers. An agreement must meet many criteria
to qualify as an eligible contract for revenue recognition.
2. Identify the performance obligation in the contract: The company's contracts often include the
promise to transfer multiple goods and services to the customer, and these promises are called
"performance obligations". Identifying these obligations in a contract is a subjective process, which
requires management to make judgment in assessing whether each promised good or service is
distinct and separable from other aspects of the contract.
3. Determine the transaction price: The transaction price represents the amount of consideration that
the Company anticipates receiving in return for delivering goods or services to its customer. If the
consideration promised in a contract includes a variable amount, the company should make an
estimation of the amount it expects to receive.
4. Allocate the transaction price to performance obligation in the contract: If a contract involves
multiple performance obligations, the transaction price is assigned to each performance obligation
in a way that reflects the consideration to which the Company anticipates receiving for providing
the specified goods or services.
5. Recognize revenue when the performance obligation is satisfied: Revenue is recognized when
obligations under the terms of the contract with the Company's customer are satisfied. This
recognition can occur either over a period or at a specific point in time, depending on when the
products or services are handed to customer.

m. The company’s major expenses are operating expenses which include selling, general, and administrative
expenses, as well as research and development costs.
n. The company’s total assets at the beginning of the year, as reported for January 28, 2022, is 92,735M$.
o. The company’s total assets at the end of the year, as reported for February 3, 2023, is 89,611M$.
92,735+89,611
p. The amount of average total assets is = 91,173M$.
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q. The amount of net income is 2,422M$.