Financial Position $ 22,000 30,500 $ 27,700 S 25,100 22,100 26,800 $ 24,600 S 21,500 19,600 16,000 Current Assets, Excluding Merchandise Inventory Merchandise Inventory Property, Plant, and Equipment, Net Total Assets 17,600 $ 25,500 51,500 46,100 40.800 36,700 95,900 89.100 80.900 65,100 Current Liabilities 107,100 32,800 22,200 26,000 27,300 21.900 46,700 28,000 17,500 16,000 12,700 Long-term Debt 18,600 Stockholders' Equity 52,100 43.600 36,300 36,400 Financial Ratios 0.9 1.0 1.0 0.9 1.4 Acid-Test Ratio Rate of Return on Total Assets Rate of Return on Stockholders' Equity 28.3% 13.5% 12.0% 10.0% 9.0% 56.1% 24.8% 22.3% 17.2% 16.7% Print Done In its annual report, WRN Athletic Supply, Inc. includes the following five-year financial summary: (Click the icon to view the financial summary:) Financial Summary -X Read the requirements Requirement 1. Compute the trend analysis for net sales and net income (use 2014 as the base year). (Round to the nearest whole percent.) 2018 2017 2016 2015 2014 Net sales % % % % % 2013 Net income % % % % Requirements - X WRN 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 $ 300,000 $ 215,000 S 192,000 $ 165,000 $ 141,000 Net Sales Revenue Increase 40% 12% 16% 17% 17% Domestic Comparative Store Sales Increase 4% 6% 4% 7% 10% Other Income-Net 2.030 1.830 1.740 1.710 1,380 Cost of Goods Sold 227,700 164,260 148,416 128,865 111,672 Selling and Administrative Expenses 41,260 36,360 31,630 27,408 22,580 Interest: Interest Expense (1,020) (1,300) (1,330) (1,030) (800) Interest Income 105 155 185 225 140 Income Tax Expense 4,450 3,890 3,650 3,370 2,790 Net Income 27.705 11,175 8,899 6,262 4.678 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 WRN. 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 WRN Athletic Supply, Inc.? Fully explain your final decision. Net Income 1.20 0.90 0.80 0.60 0.38 Dividends 0.30 0.28 0.24 0.20 0.16 S 26,800 $ 24,600 $ 22.000 Print Done Financial Position Current Assets, Excluding Merchandise Inventory Merchandise Inventory Property, Plant, and Equipment, Net Total Assets 30,500 S 27,700 S 25,100 22,100 21,500 19,600 16,000 51,500 46,100 40.800 36,700 17.600 $ 25,500 65,100 16,000 107,100 95,900 89,100 80.900 27,300 28,000 26,000 Current Liabilities Long-term Debt Stockholders' Equity 32,800 22,200 21.900 17,500 18,600 12.700 Enter any number in the edit fields and then click Check Answer. 52.100 46 700 13.600 36. 300 26.40 23 Pemaining Print Done Financial Position $ 22,000 30,500 $ 27,700 S 25,100 22,100 26,800 $ 24,600 S 21,500 19,600 16,000 Current Assets, Excluding Merchandise Inventory Merchandise Inventory Property, Plant, and Equipment, Net Total Assets 17,600 $ 25,500 51,500 46,100 40.800 36,700 95,900 89.100 80.900 65,100 Current Liabilities 107,100 32,800 22,200 26,000 27,300 21.900 46,700 28,000 17,500 16,000 12,700 Long-term Debt 18,600 Stockholders' Equity 52,100 43.600 36,300 36,400 Financial Ratios 0.9 1.0 1.0 0.9 1.4 Acid-Test Ratio Rate of Return on Total Assets Rate of Return on Stockholders' Equity 28.3% 13.5% 12.0% 10.0% 9.0% 56.1% 24.8% 22.3% 17.2% 16.7% Print Done In its annual report, WRN Athletic Supply, Inc. includes the following five-year financial summary: (Click the icon to view the financial summary:) Financial Summary -X Read the requirements Requirement 1. Compute the trend analysis for net sales and net income (use 2014 as the base year). (Round to the nearest whole percent.) 2018 2017 2016 2015 2014 Net sales % % % % % 2013 Net income % % % % Requirements - X WRN 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 $ 300,000 $ 215,000 S 192,000 $ 165,000 $ 141,000 Net Sales Revenue Increase 40% 12% 16% 17% 17% Domestic Comparative Store Sales Increase 4% 6% 4% 7% 10% Other Income-Net 2.030 1.830 1.740 1.710 1,380 Cost of Goods Sold 227,700 164,260 148,416 128,865 111,672 Selling and Administrative Expenses 41,260 36,360 31,630 27,408 22,580 Interest: Interest Expense (1,020) (1,300) (1,330) (1,030) (800) Interest Income 105 155 185 225 140 Income Tax Expense 4,450 3,890 3,650 3,370 2,790 Net Income 27.705 11,175 8,899 6,262 4.678 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 WRN. 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 WRN Athletic Supply, Inc.? Fully explain your final decision. Net Income 1.20 0.90 0.80 0.60 0.38 Dividends 0.30 0.28 0.24 0.20 0.16 S 26,800 $ 24,600 $ 22.000 Print Done Financial Position Current Assets, Excluding Merchandise Inventory Merchandise Inventory Property, Plant, and Equipment, Net Total Assets 30,500 S 27,700 S 25,100 22,100 21,500 19,600 16,000 51,500 46,100 40.800 36,700 17.600 $ 25,500 65,100 16,000 107,100 95,900 89,100 80.900 27,300 28,000 26,000 Current Liabilities Long-term Debt Stockholders' Equity 32,800 22,200 21.900 17,500 18,600 12.700 Enter any number in the edit fields and then click Check Answer. 52.100 46 700 13.600 36. 300 26.40 23 Pemaining Print Done