1. What is the par, or stated value of the common stock? $__________

2. How many shares of common stock have been issued?

Annual Report: Current year _________________ Last year __________________

3. How many shares of common stock are outstanding?

Annual Report: Current year _________________ Last year __________________

4. Does the company have any preferred stock? ______________________

If so, what is the: Par value _______ Dividend rate ___________

5. Does the company report any stockholders equity accounts other than contributed capital (capital stock), paid-in capital in excess of par (additional paid-in capital) and retained earnings?

List these accounts and their amounts (for example, treasury stock, accumulated other comprehensive income)

B. FURTHER ANALYSIS

1. Using the formula given in the textbook, calculate the following ratio for the last two years. You will find outstanding shares for multiple years in the stockholders equity statement:

Show your computations.

a) Basic Earnings per share:

Annual Report: Current year ____________ Last year _______________

b) Explain what information this ratio provides. Why do we use it?

c) How do the results for your company compare by year? Explain and give possible reasons for what youve found. (at least one paragraph)

C. INFORMATION FOR DECISION MAKING

1. Answer the following questions using the companys balance sheet in the annual report:

a) In which equity account does the company have the largest dollar amount?

b) In total dollar amounts, are the companys equity primarily contributed or retained earnings.