An investor may choose from several investment opportunities: the stocks of differ- ent companies; rental property or other real estate; or savings accounts, money mar- ket certificates, and similar financial instruments. When considering an investment in the stock of a particular company, comparative financial data presented in the an- nual report to stockholders helps an investor identify key relationships and trends. As an illustration, comparative operating results for Prime Properties, Inc., from its 2000 annual report are provided. (Dollars are presented in thousands except for earn- ings per share.) Revenues: Year Ended December 31 2000 1999 1998 Property management fees.. Appraisal fees... Total revenues. $ 58,742 55,641 $114,383 $ 63,902 60,945 $124,847 $ 66,204 62,320 $128,524 Year Ended December 31 2000 1999 1998 Expenses: Selling and advertising. Administrative expenses... Other expenses Interest expense. Total expenses. $ 64,371 30,671 9,265 2,047 $106,354 Income before taxes Income taxes..... Net income *Earnings per share... *2.5 million shares outstanding $ 75,403 31,115 9,540 $ 80,478 1,468 $117,526 $ 8,029 2,409 $ 7,321 2,196 $ 5,620 $2.25 $ 5,125 $2.05 31,618 9,446 26 $121,568 $ 6,956 2,087 $ 4,869 $1.95 What trends are indicated by the comparative income statement data for Prime Properties, Inc.? Which of these trends would be of concern to a potential investor? What additional information would an investor need in order to make a decision about whether to invest in this company?