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 it got its money, and what it 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 financial statements contained in its Annual Report (see the Continuing Financial Statement Analysis Problem in Chapter 2 for instructions on how to access the Annual Report). Go to page 44 where you will 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.

Now answer the following questions:

1. Look at Dick's income statement. Is Dick's profitable? Does it have a positive net income or a negative net income (loss) for the year ending January 31, 2015? How does that compare with the previous year?

2. Look at Dick's statement of retained earnings, found in its Consolidated Statements of Changes in Stockholders' Equity. How does Dick's net income flow into its balance sheet?

3. Look at Dick's balance sheet. What assets does Dick's own? How much has Dick's invested in each type of assets and in total assets?

4. Look at Dick's balance sheet. How does Dick's finance its assets? How much liabilities and shareholders' equity does Dick's have?