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

Evaluate the common stock of Sharp Systems 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 ....................................................

$110,000 45,000 640,000 105,000 2014

$120,000 51,000 603,000 100,000 2013

$145,000 52,000 580,000 97,000 AppendixLO1