Five-year financial summary (partial; adapted) 2015 2014 2013 2012 2011 2010 ($'000s) ($'000s) (S'000s) (S'000s) ($'000s) ($'000s) Net sales 244,524 217,799 191,329 165,013 137,634 20% Net sales increase 12% 14% 16% 17% Domestic comparative store 5% 6% 5% 8% 9% sales increase Other income-net 2,001 1,873 1,787 1,615 1,391 Cost of sales 191,838 171,562 150,255 129,664 108,725 Operating, selling and general 41,236 36,356 31,679 27,408 22,516 and administrative expenses Interest Interest expense 1,063 1,357 1,383 1,045 803 (138) (171) (188) (204) (189) Interest income Income tax expense 4,4873,897 3,692 3,338 2,740 Profit 8,039 6,671 6,295 5,377 4,430 Per ordinary share: (not in ($000s)) Profit 1.81 1.49 1.41 1.21 0.99 Dividends 0.30 0.28 0.24 0.20 0.16 2014 2012 Financial position 2015 2013 2011 2010 ($'000s) (S'000s) (S'000s) (S'000s) (S'000s) (S'000s) Current assets, excluding 30,483 27,878 26,555 24,356 21,132 inventory Inventories at cost 24,891 22,614 21,442 19,793 17,076 16,497 Property, plant and 51,904 45,750 40,934 35,96925,973 equipment, net Total assets 94,685 83,527 78,130 70,349 49,996 Current liabilities 32,617 27,282 28,949 25,803 16,762 Long-term debt 22,731 21,143 17,838 18,712 12,122 Shareholders' equity 39,337 35,102 31,343 25,834 21,112 Financial ratios Acid-test ratio Rate of return on total assets 10.2% 9.9% 10.3% 10.7% 9.6% Rate of return on 21.6% 20.1% 22.0% 22.9% 22.4% shareholders' equity Analyse the company's financial summary for the financial years 2011 to 2015 to enable you to advise a client whether they should invest in the ordinary shares of The Darwin Waterfront General Retail Supply Ltd Required Prepare a business report to your client containing your analysis with a full explanation of your final decision. The analysis should include the following sections a) Trend analysis for net sales and profit using 2011 as the base year b) Profitability analysis, including earnings per share and rate of return on net sales c) Evaluate the ability to sell inventory, including inventory turnover and average days held in inventory d) Evaluate the ability to pay debts, including acid test, debt ratio, time interest earned e) Evaluate the dividends Five-year financial summary (partial; adapted) 2015 2014 2013 2012 2011 2010 ($'000s) ($'000s) (S'000s) (S'000s) ($'000s) ($'000s) Net sales 244,524 217,799 191,329 165,013 137,634 20% Net sales increase 12% 14% 16% 17% Domestic comparative store 5% 6% 5% 8% 9% sales increase Other income-net 2,001 1,873 1,787 1,615 1,391 Cost of sales 191,838 171,562 150,255 129,664 108,725 Operating, selling and general 41,236 36,356 31,679 27,408 22,516 and administrative expenses Interest Interest expense 1,063 1,357 1,383 1,045 803 (138) (171) (188) (204) (189) Interest income Income tax expense 4,4873,897 3,692 3,338 2,740 Profit 8,039 6,671 6,295 5,377 4,430 Per ordinary share: (not in ($000s)) Profit 1.81 1.49 1.41 1.21 0.99 Dividends 0.30 0.28 0.24 0.20 0.16 2014 2012 Financial position 2015 2013 2011 2010 ($'000s) (S'000s) (S'000s) (S'000s) (S'000s) (S'000s) Current assets, excluding 30,483 27,878 26,555 24,356 21,132 inventory Inventories at cost 24,891 22,614 21,442 19,793 17,076 16,497 Property, plant and 51,904 45,750 40,934 35,96925,973 equipment, net Total assets 94,685 83,527 78,130 70,349 49,996 Current liabilities 32,617 27,282 28,949 25,803 16,762 Long-term debt 22,731 21,143 17,838 18,712 12,122 Shareholders' equity 39,337 35,102 31,343 25,834 21,112 Financial ratios Acid-test ratio Rate of return on total assets 10.2% 9.9% 10.3% 10.7% 9.6% Rate of return on 21.6% 20.1% 22.0% 22.9% 22.4% shareholders' equity Analyse the company's financial summary for the financial years 2011 to 2015 to enable you to advise a client whether they should invest in the ordinary shares of The Darwin Waterfront General Retail Supply Ltd Required Prepare a business report to your client containing your analysis with a full explanation of your final decision. The analysis should include the following sections a) Trend analysis for net sales and profit using 2011 as the base year b) Profitability analysis, including earnings per share and rate of return on net sales c) Evaluate the ability to sell inventory, including inventory turnover and average days held in inventory d) Evaluate the ability to pay debts, including acid test, debt ratio, time interest earned e) Evaluate the dividends