Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can someone help me solve all of the requirement please? Thank you! In its annual report, WOR Athletic Supply, Inc. includes the following five-year financial

Can someone help me solve all of the requirement please? Thank you!image text in transcribedimage text in transcribedimage text in transcribed

In its annual report, WOR Athletic Supply, Inc. includes the following five-year financial summary: E (Click the icon to view the financial summary.) Read the requirements. . ( - . 2018 2017 2016 2015 2014 Requirements Net sales 205 % 165 % 148 % 129 % 100 % Net income 730 % 430 % 338 % 243 % 100 % Trends in net sales and net income are both upward which is positive. Requirement 2. Compute the profitability analysis. Begin by selecting the appropriate measurements that should be used to complete a profitability analysis Earnings per share of common stock Analyze the company's financial summary for the fiscal years 2014-2018 to decide whether to invest in the common stock of WOR. Include the following sections in your analysis. 1. Trend analysis for net sales revenue and net income (use 2014 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 WOR Athletic Supply, Inc.? Fully explain your final decision. Profit margin ratio Rate of return on total assets Rate of return on common stockholders' equity Select the formula reference in the last column of the table and enter the earnings per share for each year. (Round to the nearest cent, X.XX.) 5 (Click the icon to view the formulas.) Print Done 2018 2017 2016 2015 Formula Earnings per share Choose from any list or enter any number in the input fields and then click Check Answer. ? Financial Summary 2013 WOR Athletic Supply, Inc. Five-Year Financial Summary (Partial; adapted) (Dollar amounts in thousands except per share data) 2018 2017 2016 2015 2014 Net Sales Revenue $ 270,000 $ 218,000 $ 196,000 $ 170,000 $ 132,000 Net Sales Revenue Increase 24% 11% 15% 29% 17% Domestic Comparative Store Sales Increase 5% 7% 4% 8% 10% Other Income-Net 2,000 1,870 1,780 1,620 1,320 Cost of Goods Sold 204,660 166,334 151,704 133,110 104,544 Selling and Administrative Expenses 41,240 36,380 31,660 27,430 22,550 Interest: Interest Expense (1,020) (1,300) (1,330) (1,030) (810) Interest Income 130 160 180 140 Income Tax Expense 4,500 3,810 3,670 3,340 2,720 Net Income 20,710 12,206 9,581 6,890 2,836 Per Share of Common Stock: Net Income 1.30 1.00 0.90 0.70 0.48 Dividends 0.30 0.28 0.24 0.20 0.16 165 Financial Summary 130 T60 T65 180 140 2,720 4,500 20,710 3,810 12,206 3,670 9,581 3,340 6,890 2,836 1.30 1.00 0.48 0.90 0.24 0.70 0.20 0.30 0.28 0.16 $ 21,700 17,600 $ 17,000 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 Stockholders' Equity 30,000 $ 27,100 $ 24,600 23,000 52,000 45,600 106,600 95,700 32,200 27,400 22,900 21,700 51,500 46,600 26,800 $ 24,000 $ 22,000 20,100 41,000 35,000 89,800 79,100 28,800 25,800 17,500 18,500 43,500 34,800 25,000 64,300 16,800 12,800 34,700 0.9 1.0 0.9 0.9 1.3 21.5% 14.6% 11.0% 10.0% 12.9% 24.5% 42.2% 27.1% 19.8% 19.3% In its annual report, WOR Athletic Supply, Inc. includes the following five-year financial summary: E (Click the icon to view the financial summary.) Read the requirements. . ( - . 2018 2017 2016 2015 2014 Requirements Net sales 205 % 165 % 148 % 129 % 100 % Net income 730 % 430 % 338 % 243 % 100 % Trends in net sales and net income are both upward which is positive. Requirement 2. Compute the profitability analysis. Begin by selecting the appropriate measurements that should be used to complete a profitability analysis Earnings per share of common stock Analyze the company's financial summary for the fiscal years 2014-2018 to decide whether to invest in the common stock of WOR. Include the following sections in your analysis. 1. Trend analysis for net sales revenue and net income (use 2014 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 WOR Athletic Supply, Inc.? Fully explain your final decision. Profit margin ratio Rate of return on total assets Rate of return on common stockholders' equity Select the formula reference in the last column of the table and enter the earnings per share for each year. (Round to the nearest cent, X.XX.) 5 (Click the icon to view the formulas.) Print Done 2018 2017 2016 2015 Formula Earnings per share Choose from any list or enter any number in the input fields and then click Check Answer. ? Financial Summary 2013 WOR Athletic Supply, Inc. Five-Year Financial Summary (Partial; adapted) (Dollar amounts in thousands except per share data) 2018 2017 2016 2015 2014 Net Sales Revenue $ 270,000 $ 218,000 $ 196,000 $ 170,000 $ 132,000 Net Sales Revenue Increase 24% 11% 15% 29% 17% Domestic Comparative Store Sales Increase 5% 7% 4% 8% 10% Other Income-Net 2,000 1,870 1,780 1,620 1,320 Cost of Goods Sold 204,660 166,334 151,704 133,110 104,544 Selling and Administrative Expenses 41,240 36,380 31,660 27,430 22,550 Interest: Interest Expense (1,020) (1,300) (1,330) (1,030) (810) Interest Income 130 160 180 140 Income Tax Expense 4,500 3,810 3,670 3,340 2,720 Net Income 20,710 12,206 9,581 6,890 2,836 Per Share of Common Stock: Net Income 1.30 1.00 0.90 0.70 0.48 Dividends 0.30 0.28 0.24 0.20 0.16 165 Financial Summary 130 T60 T65 180 140 2,720 4,500 20,710 3,810 12,206 3,670 9,581 3,340 6,890 2,836 1.30 1.00 0.48 0.90 0.24 0.70 0.20 0.30 0.28 0.16 $ 21,700 17,600 $ 17,000 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 Stockholders' Equity 30,000 $ 27,100 $ 24,600 23,000 52,000 45,600 106,600 95,700 32,200 27,400 22,900 21,700 51,500 46,600 26,800 $ 24,000 $ 22,000 20,100 41,000 35,000 89,800 79,100 28,800 25,800 17,500 18,500 43,500 34,800 25,000 64,300 16,800 12,800 34,700 0.9 1.0 0.9 0.9 1.3 21.5% 14.6% 11.0% 10.0% 12.9% 24.5% 42.2% 27.1% 19.8% 19.3%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions