Forcasted 1996 Balance Sheet Based on Various Assumptions 1995 Actual Forecast for 1996 with Actual 19 % of 1995

Fixed Current Assets: Sales Liabilities 52.4 Cash 43 1 66 Short-term Investments 484 14 484 Accounts Receivables, net 538 15 820 Inventories 293 8 447 Other 112 3 171 Total Current Assets 1470 42 1987 Property, Plant & Equipment, net 117 3 178 Other 7 0 11 Total Assets 1594 46 2176 Additional Funding Needed 582 355 227 Current Liabilities: Accounts Payable Accrued and Other Liabiltiies Total Current Liabilities Long-term Debt Other Liabilities Total Liabilities Stcokholders' Equity: Preferred Stock a Common Stock Retained Earnings Other Total Stockholders' Equity Total Balance

403 349 752 113 77 942

12 10 22 3 2 27

403 349 752 113 77 942

120 242 311 -21 652 1594

19 46

879 2176

0.04288

227.728 Competitive advantage=Dell's CoS*(Compaq's DSI-Dell's DSI)/360 Additional inventory

4.3

311.714 311.714

Extra Investment C&Sh term Shareholder's equity

312 21% 527 59% 48%

for 1996 with Actual 1996 Sales Prportional Liabilities 66 484 820 447 171 1987 178 11 2176 -139

582

227

614 532 1146 172 117 1436

88 139

494

879 2176

Actual 1996 Balance Sheet Compared to Projections Forecast for 1996 with Actual 1996 Sales Year Ended 01/28/96 Forecast for 1996 (Actual) Fixed Liabilities Variance Current Assets 55 66 -11 Short-term Investments 591 484 107 Accounts Receivables 726 820 -94 Inventories 429 447 -18 Other 156 171 -15 Total Current Assets 1957 1987 -30 Property, Plant & Equipment 179 178 1 Other 12 11 1 Total Assets 2148 2176 -28 Additional Funding Needed 355

Current Liabilities: Accounts Payable Accrued and Other Liabilities Total Current Liabilities Long-term Debt Other Liabilties Total Liabilities Stockholders' Equity Preferred Stock Common Stock Retained Earnings Other Total Stockholders' Equity

466 473 939 113 123 1175

403 349 752 113 77 942

63 124 187 0 46 233

6 430 570 -33 973 2148

879 2176

94 -28

h Actual 1996 Sales

Actual 1996 Balance Sheet Compared to Projections

Current Assets Short-term Investments Accounts Receivables Inventories Other Total Current Assets Property, Plant & Equipment Other Total Assets Additional Funding Needed

Year Ended 01/28/ 96 55 591 726 429 156 1957 179 12 2148

Year Ended 01/28/ 97 83 591 1089 644 234 2640 269 18 2927 779 373 405.1

Year Ended 01/28/ 97 83 591 1089 644 234 2640 269 18 2927 779 -214

Current Liabilities: Accounts Payable Accrued and Other Liabilities Total Current Liabilities Long-term Debt Other Liabilties Total Liabilities Stockholders' Equity Preferred Stock Common Stock Retained Earnings Other Total Stockholders' Equity

466 473 939 113 123 1175

466 473 939 113 123 1175

699 710 1409 169.5 184.5 1763 588

6 430 570 -33 973 2148

1378 2927

1378 2927

5296 14.71 22.07 11.75

Debt repaid & $500 Equity Buy back 83 591 1089 644 234 2640 269 18 2927 986 373

Sales 1997 Daliy sales COS Daily CoS 7944 22.1 6344 17.6 DSI Q4 1996 Actual Hypothetical 1997 Projected DSO 31 42 -17 -16 14 26 16 22.1 353.1

466 473 939 0 123 1062

Hypothetical improvements Daily savings ($m) Annual savings Total

17 17.6 299.6 987.4

878 2927

DPO CCC 33 40 19 -52 52 -12 19 17.6 334.8

Actual 1996 Balance Sheet Compared to Projections Year Ended 01/28/9 6 (Actual) 55 591 726 429 156 1957 179 12 2148

Current Assets Short-term Investments Accounts Receivables Inventories Other Total Current Assets Property, Plant & Equipment Other Total Assets Additional Funding Needed

1 11 14 8 3 37 3 0 41

Forecast for 1996 Proportional Liabilities Variance 66 -11 484 107 820 -94 447 -18 171 -15 1987 -30 178 1 11 1 2176 -28 -139

Current Liabilities: Accounts Payable Accrued and Other Liabilities Total Current Liabilities Long-term Debt Other Liabilties Total Liabilities Stockholders' Equity Preferred Stock Common Stock Retained Earnings Other Total Stockholders' Equity

466 473 939 113 123 1175

9 9 18 2 2 22

614 532 1146 172 117 1436

-148 -59 -207 -59 6 -261

6 430 570 -33 973 2148

879 2176

94 -28

Variance