Haver Industries is a leading consumer products company. The company’s adapted comparative balance sheets and income statements (in $ millions) follow.

Required

a. In his letters to stockholders in 2016, Haver’s CEO stated that the company’s goal for the next five years was to achieve 4% to 6% sales growth each year and at least 10% growth in earnings per share. Based on the results shown here, did the company meet its targets? How do you know?

b. Managing a broad collection of brands is challenging. In its 2016 annual report, Haver Industries stated that acquisitions and divestitures “are part of the Company’s strategic focus on developing brands that offer the greatest potential for growth.” The report went on, “This requires some difficult decisions, including a restructuring program to reduce overhead and streamline manufacturing processes.” In other words, the company strives to use its assets to earn the greatest possible return. How well has the company managed its assets over the five-year period shown here?

c. Would you recommend Haver Industries shares to a friend who is interested in investing for growth potential? Why or why not?

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Haver Industries Comparative Income Statement For the Years Ended December 31 2020 2019 2018 2017 2016 Net sales revenue $68,222 $56,741 $51,407 $43,377 $40,238 Cost of goods sold 33,125 27,872 25,076 22,141 20,989 Gross profit Research & development 35,097 28,869 26,331 21,236 19,249 1,665 expenses Selling, general, & administrative expenses Non-operating income (expense) Interest expense 2,075 1,940 1,802 19,773 16,460 14,702 11,718 12,052 283 346 152 238 (211) 1,119 834 629 561 603 Income before taxes 12,413 9,981 9,350 7,530 6,383 Income taxes (30%) 3,729 3,058 2,869 2,344 2,031 Net income $ 8,684 $ 6,923 $ 6,481 $ 5,186 $ 4,352 Earnings per share Dividends per share $ 2.79 $ 1.15 $ 2.70 $ 1.03 $ 2.34 $ 0.93 $ 1.80 $ 0.82 $ 1.46 $ 0.76