Let’s examine Dick’s Sporting Goods (Dick’s) again. Think about Dick’s. What liabilities might Dick’s need to finance its operations? Return to Dick’s Annual Report and look at the financial statements (see the Continuing Financial Statement Analysis Problem in Chapter 2 for instructions on how to access the Annual Report). 

Now answer the following questions:

1. Look at Dick’s balance sheet. Look at the liabilities Dick’s owes as of January 28, 2017, and January 30, 2016. For these two years, how much of Dick’s liabilities are current and how much are long-term, noncurrent?

2. Review Dick’s January 28, 2017, balance sheet. What are the different types of liabilities that Dick’s owes?

3. What is Dick’s debt ratio and interest coverage ratio for the year ending January 28, 2017? What do these ratios tell you?

4. Looking back over your answers to questions 1 through 3, how do you think Dick’s is performing? What do you think of how Dick’s finances its assets?