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Analyzing a Company for Its Investment Potential In its annual report, WRS Athletic Supply, In, includes the following five-year financial summary WRS ATHLETIC SUPPLY, INC

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Analyzing a Company for Its Investment Potential In its annual report, WRS Athletic Supply, In, includes the following five-year financial summary WRS ATHLETIC SUPPLY, INC Five-Year Financial Seaman (Partiadapeed) 2015 | 2014-2013 2012 2011 2010 Net sales increase Ochet Cost of sales 21% 14% 16%| 20% | 17% 8%| 9% 2,001 1873 1,7 1615 1391 5% 41,236 36,356 31679 2740 22,516 Interest expense loterest income 1,063 1,3571,3831,04S (138(171)(18 204)(189 803 Income tax expense Net income Per share of common stock 4487 3,89736333 2740 8,029| 6871| 6295 5.77 4,430 1.81 0.30 0.99 149 141121 0.24 Net income 0.28 020 Financial Position S30483 277 265ss s 24356 5 21132 Current assets, excluding inventory Inventories at LIFOco Property plant, and equipanent, net 24891 22614 21,42 19793 17,06 $16,497 51304 457s0 4093433 94,6851 83,5271 78,1 30 | 70,M91 49,9% 32617 2728249 25803 16762 Current liabilities Long-term debe 22.731 21,143 17838 18,12 12122 39,337 35,102 31,343 25,834 21,112 Financial Ratios Acid-test ratio Rate of return on total assets 0.9 10.2% 21.6% | 1.0 9.9% 20.1%| 09 0.9 10.3% 220% | 13 96% 22,4% 10.7% 22.9% | Rate of return on shareholders' equity Requirement 1. Analyze the company's financial summary for the fiscal years 2011-2015 decide whether to invest in the common stock of WRS. Include the follow sections in your analysis, and fully explain your final decision. a. Trend analysis for net sales and net income (use 2011 as the base year) b. Profitability analysis. c. Evaluate the ability to sell inventory (WRS uses the LIFO method). d. Evaluate the ability to pay debts. Evaluate the dividends

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