Look at the four basic financial statements for Books-A-Million, found in Appendix A at the back of this book.

Find the total assets, liabilities, and shareholders’ equity for the two most recent years. As a group, discuss the change in the company’s financial position without looking at the income statement. Jot down your opinions. Then, study the income statement for the most recent year. Do the results support your opinions about the balance sheet changes? What information do these statements provide for your analysis? What additional information would be useful? After answering these questions as a group, look at the notes to the financial statements. Do the notes help answer any of your questions?
Make a list of 10 questions you have about the financial statements. Try to answer them and discuss why you would like answers to these questions. Save the list so you can check to see how many of the questions you are able to answer at the end of thecourse.

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In thousands, except per share cmounts, ratios and operational data) Statement of Income Data Net revenue Net income Eamings per share- diluted Weighted average shares diluted Capital investment Dividends per share -declared For the Fiscal Year Ended: 1/3109 2/2/08 2/3/07 2806 1/290S 52 weeks 52 weeks 53 weeks 52 weeks 52 weeks S513,271 $535,128 $520,416 $503,75 $474,099 10,574 16,522 8,887 13,067 0,199 0.59 15,609 16,302 16,805 6,888 17,178 19,806 6,878 14,907 ,297 14.923 0.23 0.68 1.01 0.28 3.36 0.33 0.23 Balance Sheet Data Property and equipment, net Total assets Long-term debt Stockholders' equity S 58,038 53,514 51,47 51,00 55,946 279,292 284,833 304,037 311,659 300,812 7,100 104,494 99,057,034 45,009 134,859 6,720 6,975 7,200 Other Data Working capital Debt to total capital ratio S 62,145 58,785 $117,737 106,637 0.05 95,382 0.18 0.26 0.04 Operational Data Total number of stores Number of superstores Number of traditional stores 206 179 27 220 200 208 184 3 3 173 168 38