In its annual report, ABC Athletic Supply, Inc. includes the following five-year financial summary:

Requirements Analyze the company’s financial summary for the fiscal years 2020–2024 to decide whether to invest in the common stock of ABC. Include the following sections in your analysis.
1. Trend analysis for net sales revenue and net income (use 2020 as the base year).
2. Profitability analysis.
3. Evaluation of the ability to sell merchandise inventory.
4. Evaluation of the ability to pay debts.
5. Evaluation of dividends.
6. Should you invest in the common stock of ABC Athletic Supply, Inc.? Fully explain your final decision.

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(Dollar amounts in thousands except per share data) Net Sales Revenue Net Sales Revenue Increase ABC ATHLETIC SUPPLY, INC. Five-Year Financial Summary (Partial; adapted) 2024 2023 2022 $216,000 $191,000 13% Domestic Comparative Store Sales increase Other Income-Net Cost of Goods Sold Selling and Administrative Expenses Interest: Interest Expense Interest Income Income Tax Expense Net Income Per Share of Common Stock: Net Income Dividends Financial Position Current Assets, Excluding Merchandise Inventory Merchandise Inventory Property, Plant, and Equipment, Net Total Assets Current Liabilities Long-term Debt Stockholders' Equity Financial Ratios Acid-Test Ratio Rate of Return on Total Assets Rate of Return on Common Stockholders' Equity $ 250,000 16% 5% 2,110 189,250 41,210 (1,080) 125 4,470 16,225 1.60 0.40 1.0 19% 6% 4% 1,840 1,760 164,592 148,216 36,330 31,620 17.2% 33.5% (1,380) 165 3,900 11,803 1.30 0.38 1.0 14.4% 26.8% 1.20 0.34 (1,400) (1,020) 155 235 3,700 3,320 7,979 4,760 2021 2020 $161,000 $134,000 17% 9% 1,330 0.9 20% 7% 1,690 126,385 27,440 $ 30,700 $ 27,200 $ 26,700 $ 24,400 $ 21,500 24,500 22,600 21,700 19,000 17,500 45,200 40,000 35,100 51,400 106,600 32,300 95,000 88,400 78,500 28,000 28,300 25,000 23,000 21,500 17,600 19,100 51,300 45,500 42,500 34,400 11.2% 20.8% 1.00 0.30 106,396 22,540 1.0 8.1% 13.5% (830) 190 2,700 3,054 0.78 0.26 25,600 64,600 16,500 12,000 36,100 1.3 7.1% 13.0% 2019 $ 16,700