Lets look again at Dicks Sporting Goods (Dicks). Think about Dicks. How did Dicks get the money
Question:
Let’s look again at Dick’s Sporting Goods (Dick’s). Think about Dick’s. How did Dick’s get the money to fund its operations? Return to Dick’s Annual Report and review the financial statements (see the Continuing Financial Statement Analysis Problem in Chapter 2 for instructions on how to access the Annual Report).
Now answer the following questions:
1. Look at Dick’s balance sheet. What different types of stockholders’ equity are reported on Dick’s balance sheet? Read the financial statements, including footnote 9 found on page 55. Describe each type of stockholders’ equity.
2. Review Dick’s January 28, 2017, Statement of Changes in Stockholders’ Equity (page 43 of Dick’s 2016 annual report). What happened during the year ending January 28, 2017?
3. What is Dick’s’ return on equity (ROE) for the year ending January 28, 2017? What does this ratio tell you?
4. Looking back over your answers to questions 1 through 3, how do you think Dick’s is performing? What do you think of Dick’s ROE?
Financial StatementsFinancial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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