The following schedule summarizes the noncurrent assets reported in the end of 1997 balance sheets of Hewlett
Packard, a company that designs, manufactures, and services electronic data and communications systems, and Bethlehem Steel, a major steel fabricator.
|
Hewlett |
Bethlehem |
|
|
Packard |
Steel |
|
|
(Dollars in millions) |
||
|
Current assets (total) |
$20,947 |
$1,464 |
|
Noncurrent assets |
||
|
Property, plant, and equipment (at cost) |
11,776 |
6,454 |
|
Less: Accumulated depreciation |
(5,464) |
(4,096) |
|
Net |
6,312 |
2,358 |
|
Long term receivables and other |
4,490 |
981 |
|
Total noncurrent assets |
10,802 |
3,339 |
|
Total assets |
$31,749 |
$4,803 |
Required
a. Identify the major differences between these two firms in the composition of noncurrent assets. Try to explain these differences based on the types of products that each company produces.
b. Based solely on the information provided here, which company appears to have the older assets?