Chapter 11
Financial Statement Analysis
594
Case Study
CS-1(
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4
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Suppose that you have decided to invest some money in the stock market. After some
research online, you come across the financial statements of Research in Motion. Before you
can make a decision to invest in the company, you will need to calculate some key financial
ratios and then analyze them. The statements are presented below.
Research in Motion
Consolidated Balance Sheet (in thousands)
As at February 29, 2016 and February 28, 2015
2016
2015
Assets
Cash
$1,550,861
$835,546
Short-term Investments
360,614
682,666
Accounts Receivable
2,800,115
2,269,845
Inventory
621,611
682,400
Other Current Assets
479,455
371,129
Total Current Assets
5,812,656
4,841,586
Long-Term Investment
958,248
720,635
Property, Plant and Equipment
1,956,581
1,334,648
Intangible Assets
1,476,924
1,204,503
Total Assets
$10,204,409
$8,101,372
Liabilities
Accounts Payable
$615,620
$448,339
Accrued Liabilities
1,638,260
1,238,602
Income Taxes Payable
95,650
361,460
Other Current Liabilities
82,247
66,950
Total Current Liabilities
2,431,777
2,115,351
Non-Current Liabilities
169,969
111,893
Total Liabilities
2,601,746
2,227,244
Shareholders' Equity
Common Shares
2,113,146
2,208,235
Retained Earnings
5,489,517
3,665,893
Shareholders' Equity
7,602,663
5,874,128
Liabilities and Shareholders' Equity
$10,204,409
$8,101,372
