Potential investor in common stock of gateway


Task: The following historical data were derived from Gateway, Inc.’s consolidated financial statements. (It should be noted that past data are not necessarily indicative of the results of future operations.).

 

1995

1996

1997

1998

1999

Net Sales

3,676,328

5,035,228

6,293,680

7,467,925

8,645,561

Net Income

172,981

250,679

109,797

346,399

427,944

Total Assets

1,124,011

1,673,411

2,039,271

2,890,380

3,954,688

Long Term Obligations net of current maturties

10,805

7,244

7,240

3,360

2,998

Q1. Are the trends expressed in the above data generally consistent with each other?

Q2. In your opinion, which of the above trends would be most meaningful to a potential investor in common stock of Gateway, Inc.? Which trend would be least meaningful?

Q3. What other data (trend or otherwise) would you like to have access to prior to making an investment in Gateway, Inc.?

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