What can the historical income statements and balance sheets tell you about the financial health and current condition of Krispy Kreme Doughnuts, Inc.?
How can financial ratios extend your understanding of financial statements? What questions do the time series of ratios in case Exhibit 7 raise? What
questions do the ratios on peer firms in case Exhibits 8 and 9 raise?
Is Krispy Kreme financially healthy at year-end 2004?
In light of your answer to question 3, what accounts for the firm’s recent share price decline?
What is the source of intrinsic investment value in this company? Does this source appear on the financial statements?
Sample Solution
