Homework: Chapter 15 Project Save Score: 0 of 100 pts HW Score: 0%, 0 of 100 pts 1 of 1 (0 complete) P15-29A (similar to) Question Help In its annual report, WRN Athletic Supply, Inc. includes the following five-year financial summary: EEB(Click the icon to view the financial summary.) 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 % % % Net income Requirements 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 Enter any number in the e Print Done parts remaining 23 WRN Athletic Supply, Inc. Five-Year Financial Summary (Partial; adapted) (Dollar amounts in thousands except per share data) 2018 2017 2016 2015 2014 2013 $ 270,000 S 221,000 S195,000 170,000 $ Net Sales Revenue 139,000 Net Sales Revenue Increase 22% 13% 15% 22% 17% Domestic Comparative Store Sales Increase 5% 6% 4% 7% 10% 2,040 1,770 1,340 Other Income--Net 1.810 1,610 Cost of Goods Sold 168,623 150.930 132,770 110,227 204,120 Selling and Administrative Expenses 41,220 31,650 22,580 36,320 27,450 Interest Interest Expense (790) (1,000) (1,350) (1,300) (1,060) Interest Income 150 175 185 195 180 Income Tax Expense 3,690 2,730 4.480 3,820 3,380 7,145 Net Income 21,370 12,872 9,385 4,193 Per Share of Common Stock: Net Income 0.90 0.60 0.38 1.20 0.80 Dividends 0.35 0.33 0.29 0.25 0.21 Financial Pos ition Current Assets, Excluding Merchandise Inventory S 30,300 $ 27,600 $ 26,100 $ 24,100 S 21,100 Merchandise Inventory 17,900 S 24,200 22,900 22,000 20,100 16,000 Property, Plant, and Equipment, Net 36,100 51,900 46,200 40,500 25,500 Total Assets 106,400 96,700 88,600 80,300 64,500 Current Liabilities 32,100 27,500 25,700 16,700 28,200 Long-term Debt 23,100 21,200 17,700 18,000 12,100 Stockholders' Equity 48,000 42,700 36,600 35,700 51,200 Financial Ratios Acid-Test Ratio 0.9 1.0 0,9 1.3 0.9 Rate of Return on Total Assets 22.0% 15.4% 12.7% 11.3% 10.3% Rate of Return on Stockholders' Equity 19.3% 43.1% 28.4% 23.7% 19.8%