Chapter 11
Financial Statement Analysis
596
b) Based on the figures you calculated, has the company shown improvement in 2016
over 2015? Would you invest in Research in Motion? Explain.
CS-2 (
3
4
5
)
The following information has been taken from the financial statements of Ivory Inc.
Ivory Inc.
Current Assets, December 31, 2016
$175,000
Total Assets, January 1, 2016
500,000
Total Assets, December 31, 2016
575,000
Current Liabilities, December 31, 2016
75,000
Total Liabilities, December 31, 2016
175,000
Shareholders’ Equity, January 1, 2016
300,000
Shareholders’ Equity, December 31, 2016
400,000
Net Sales
900,000
Depreciation Expense
10,000
Interest Expense
20,000
Income Tax Expense
25,000
Net Income
40,000
