Lets look at Dicks Sporting Goods (Dicks) some more. Think about Dicks. What assets did Dicks need

Question:

Let’s look at Dick’s Sporting Goods (Dick’s) some more. Think about Dick’s. What assets did Dick’s need to operate? Return to Dick’s Annual Report (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. What long-term assets does Dick’s own? How much has Dick’s invested in each type of long-term assets as of January 28, 2017, and January 30, 2016?

2. Read through footnote 1 on page 45, footnote 2 on page 50, and footnote 4 on page 52 of Dick’s 2016 Annual Report. Why does Dick’s have tangible and intangible assets?

3. Look over footnote 1 on pages 45 and 46. Read about how Dick’s accounts for (1) property and equipment, and (2) intangible assets. How is Dick’s depreciating its property and equipment and amortizing its intangible assets?

4. What is Dick’s return on assets (ROA) and fixed asset turnover for the year ending January 28, 2017? What do these ratios tell you?

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

Intangible Assets
An intangible asset is a resource controlled by an entity without physical substance. Unlike other assets, an intangible asset has no physical existence and you cannot touch it.Types of Intangible Assets and ExamplesSome examples are patented... Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.

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