Homework: Chapter 15 Homework + 3 of 3 complete HW Score: 64.98%, 6.5 of 10 pts Question p o Score: 0.5 of 4 pts BP15-29A (similar to) In its annual report, WAM Athletic Supply, Inc. Includes the following five-year financial summary (Click the icon to view the financial summary) Read the requirements 2015 2018 220 343 2017 161 % 341 2016 40 % 234 Ne income l i Trends in 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 profitabi Promarginato Rate of retum en totalasses Rate of return on common stockholders'uty Camins per share of common ock Select the formula reference in the last column of the table and entert 2018 2017 2016 2015 2014 Formula Earings are Choose from any store any number is the input folds and then click Check Answer Check Awe parts nework 3 of 3 (3 complete) g five-year financial summary: yuuu u Requirements 18 % 148 % positive Analyze the company's financial summary for the fiscal years 2014-2018 to decide whether to invest in the common stock of WAM. Include the following sections in your analysis. 1. Trend analysis for net sales revenue and net income (use 2014 as the base sed to co 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 WAM Athletic Supply, Inc. Fully explain your final decision ter the eal Print Done nd then click Check Answer Clear All * Financial Summary 2013 2014 137,000 17% WAM Athletic Supply, Inc. Five-Year Financial Summary (Partial; adapted) (Dollar amounts in thousands except per share data) 2018 2017 2016 2015 Net Sales Revenue $ 310,000 $ 221,000 $ 192,000 $ 162,000 $ Net Sales Revenue Increase 15% 19% 18% Domestic Comparative Store Sales Increase 6% 5% 7% Other Income-Net 1,800 1,770 1,650 Cost of Goods Sold 360 168,844 148,608 126,522 Selling and Administrative Expenses 230 36,340 31,690 27,430 Interest: Interest Expense (1.040) (1,400) (1,390) (1.100) Interest Income 145 180 Income Tax Expense 4 440 3,800 3,630 3,340 Net Income Per Share of Common Stock Net Income Dividends 9% 1,320 108,641 22,550 (860) 190 12.500 Print Done ply * Financial Summary interest income 745 4440 THU 3,800 12,596 190 205 3,6303,340 8,642 5,463 2,710 3,694 31,155 1.80 0.98 1.50 0.38 1.40 0.34 1.20 0.30 0.40 0.26 16,000 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 30,200 $ 24,300 51,500 106,000 32,900 2,500 28,000 $ 22,800 45,900 96,700 28,100 21.200 47.400 26,200 $ 24,000 $ 22,100 19,600 4 0,900 36,700 89,200 80,300 28,200 25,200 17,900 43,100 36,100 22,100 18,000 $ 25.400 65,500 16,900 12,100 36,500 7800 19,000 21,200 7,400 50.600 0.9 1.0 0.9 11.8% 21,8% 15.1% 27.8% 1.0 9.0% 15.0% 1.3 8.0% 14.5% 31. 63.6% humi Print Done