The following summary information is available regarding Robinson Sports Gear. The income statements are for the respective
Question:
a. What does this income statement information suggest to you about this firm and its attractiveness as a potential investment?
b. Compute the return on equity for each of the three years.
c. How does the return on equity information change your initial conclusion about the attractiveness of this company as an investment?
d. What do your responses to parts a and c suggest to you about evaluating acompany?
Transcribed Image Text:
Income Statements Net sales Cost of sales Other expenses Net income 2005 $53 $48 $45 Total current assets 2004 2003 Balance Sheets 2005 2004 2003 $26 $13 5 41 229 31 28 27 Tota ng-term assets 15 15 15 Total liabilities 12 8 S 7 Total stockholders' equity $55 $27 $12
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a The income statement information appears positive Sales are increasing each period as is net incom...View the full answer
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Related Book For
Financial Accounting Information For Decisions
ISBN: 978-0324672701
6th Edition
Authors: Robert w Ingram, Thomas L Albright
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