You are interested in investing in Teddy Company, and you have obtained the following balance sheets for the company for the past two years:

The following amounts were reported on the income statement for the year ended June 30, 2011:
Sales ........... $ 450,000
Cost of goods sold.... 215,000
Net income ....... 80,000

1. Compute as many of the financial statement ratios you have studied as possible with the information provided for Teddy Company. Some ratios can be computed for both years and others can be computed for only one year.
2. Would you invest in Teddy Company? Why or why not? What additional information would be helpful in making thisdecision?

  • CreatedSeptember 01, 2014
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