Financial statement analysis (Learning Objective 2) 15–20 min.

Evaluate the common stock of Shamrock Incorporated as an investment. Utilize the four ratios that help determine if the business is generating enough net income to reward the stockholders for the use of their money; use this information to determine whether the stock increased or decreased in attractiveness during the past year. Round all ratios to two decimal places.

Net Income ..........................................................................

Total Dividends ....................................................................

Common Stockholders’ Equity at Year-End ....................................................................

Number of shares of common stock outstanding at year-end .........................................

$ 90,000 50,000 750,000 110,000 2014

$ 80,000 40,000 720,000 100,000 2013

$ 75,000 35,000 690,000 95,000 2012 AppendixLO1