Let's look at Dick's Sporting Goods (Dick's) some more. Think about Dick's. Think about accountants reporting what Dick's has, where Dick's got its money, and what Dick's has been doing to create value. Is Dick's earning net income or loss? What resources did Dick's need to operate? Think about the business of Dick's.

Return to Dick's Web site at www.dickssportinggoods.com. At the bottom of the page, click on "Investor Relations." The Investor Relations section of Dick's Web site contains a lot of information shareholders (also called stockholders) want and need. Next, click on "Financial Information" and then click on "Annual Report and Proxy." Finally, click on "2014 Annual Report." A lot of information is contained in the financial statements of Dick's. The financial statements are a part of the annual report. Look at Dick's 2014 financial statements contained in its 2014 annual report (for the year ended January 31, 2015). On page 44, you'll find Dick's income statement for the year ending January 31, 2015 (called the Consolidated Statement of Income). On page 46, you'll find Dick's balance sheet as of January 31, 2015. On page 47, you'll find Dick's statement of retained earnings for the year ending January 31, 2015. It's a part of Dick's statement titled Consolidated Statements of Changes in Stockholders' Equity. Look at the 2014 income statement and balance sheet of Dick's (for the year ended January 31, 2015) and answer the following questions:

a. What would happen to Dick's balance sheet if it borrowed $50 million in cash from a bank?

b. What would happen to Dick's balance sheet if it built a new store costing $50 million in cash?

c. What would happen to Dick's income statement and balance sheet if it had a big sale, increasing net income by $10 million which all ended up as cash?

d. What would happen to Dick's income statement and balance sheet if it hired more employees? The salaries of these employees cost Dick's $1 million paid in cash. The extra employees did not create any extra net income.