This and similar cases in each chapter are based on the consolidated financial statements of RadioShack Corporation , given in Appendix B at the end of this book. As you work with RadioShack Corporation, you will develop the ability to analyze the financial statements of actual companies.

Requirements
1. Read Note 1—(Description of Business) of RadioShack Corporation’s annual report. What do you learn here and why is it important?
2. Name two of RadioShack Corporation’s competitors. Why is this information important in evaluating RadioShack Corporation’s financial performance?
3. Write RadioShack Corporation’s accounting equation at December 31, 2010 (express all items in millions and round to the nearest $1 million). Does RadioShack Corporation’s financial condition look strong or weak? How can you tell?
4. What was the result of RadioShack Corporation’s operations during 2010? Identify both the name and the dollar amount of the result of operations for 2010. Does an increase (or decrease) signal good news or bad news for the company and its stockholders?
5. Examine retained earnings in the Consolidated Statements of Shareholders’ Equity. What caused retained earnings to increase during 2010?
6. Which statement reports cash as part of RadioShack Corporation’s financial position? Which statement tells why cash increased (or decreased) during the year? What two individual items caused RadioShack Corporation’s cash to change the most during 2010?