You already have a significant investment portfolio, funded in large part by proceeds of stock options received as compensation for your internship at Apple. You have recently received some additional funds and are now wondering how to invest them.

After doing some research, you decided that a good dividend-paying stock is the perfect investment for your new funds. Evaluating your options, you discovered an interesting company by the name of Bling Gold Mines. The companys stock is publicly traded under the ticker symbol: BLMS. You are particularly interested in this company given its stable history and attractive dividend. Last year BLMS paid a dividend of $3.90 per share, which at the stocks current price of $22 would give you an annual return of almost 18%. This return is over three times what you can obtain from most major gold mining stocks. In todays financial climate, a return of almost 18% is one which youd be very happy with.

Completing a Financial Accounting class has given you the skills to evaluate financial statements. Therefore, you download BLMSs latest annual report dated December 31, 2014 to evaluate it in order to make a decision on your possible investment. Relevant parts of this report are included below.

After a considerable time pouring through BLMSs annual report, you decide...

Instructions: Evaluate the excerpts from BLMSs annual report (shown below) and in two pages or less state whether as a result of your evaluation you invest your funds in BLMSs shares or not and why. Be decisive! Start by stating whether you would invest in BLMS following with the reason(s) that prompt your decision. HINT: This is not an extremely subjective case or one that easily lends itself to multiple interpretations. There is one fact that is of the utmost relevance and which should drive your decision. Find it!

Bling Gold Mines, Inc. CONSOLIDATED STATEMENTS OF INCOME (US dollars in thousands, except per share amounts) Bling Gold Mines, Inc. CONSOLIDATED BALANCE SHEETS (US dollars in thousands, except share amounts) Years ended December 31, As Of December 31, 2014 2013 2013 Revenue 134,255 Operating expenses: Cash and cash equivalents Accounts receivable, net Inventories Prepaids and other 17,932 23,522 15,814 16,145 16,847 14,220 984 48,196 Production costs Depreciation and depletion 15,014 37,125 37,867 Total cost of sales 54,082 52,139 58,432 1,810 24,153 Current assets Exploration, development, and land holding Corporate general and administrative Restricted cash Other assets, non-current Plant and equipment, net Mineral properties, net 11,762 2,962 17,647 17,299 Income from operations 74,427 58,506 50,907 92,341 Other income (expense) Total assets 158,985 186,505 Interest income Interest expense Foreign exchange gain, net Other income, net 648 6,102 269 45,645 lities: Accounts payable Interest payable Other liabilities, current Debt, current Deferred tax liabilities, current Income before income taxes 70,930 53,595 Income tax (expense) benefit 1,999 1,006 10,001 2,023 Net income 28,300 Current liabilities 9,381 Dividends paid Addition to retained earnings 39,000 4,977 29,000 4,229 Other liabilities, non-current Debt, non-current Deferred tax liabilities, non-current 11,788 74,004 3,300 54,068 1,026 Income per share: Total liabilities 65,132 96,149 3.32 2.75 Shareholders' Equity 10 Common stock, $0.001 par Shares issued and outstanding 2012-10,000,000 and 2011-10,000,000 Additional paid-in-capital Treasury stock Retained earnings 70,631 25,702 93,853 70,631 (1010) 20,725 90,356 186,505 Total shareholders' equity 2 Total liabilities and shareholders' equity 158,985