In its annual report, WRN Athletic Supply, Inc. includes the following five-year financial summary EEB (Click the icon to view the financial summary) Requirement 1. Analyze the company's financial summary for the fiscal years 2016-2020 to decide whether to invest in the commotn stock of WRN. Include the following sections in your analysis, and fully explain your final decision. a. Trend analysis for net sales and net income (use 2016 as the base year) b. Profitability analysis. c. Evaluation of the ability to sell merchandise inventory (WRN uses the LIFO method) d. Evaluation of the ability to pay debts e. Evaluation of dividends. Requirement 1a. Compute the trend analysis for net sales and net income (use 2016 as the base year) (Round to the nearest whole percent) 2020 2018 2017 2016 Net sales WRN Athletic Supply, Inc. Five Year Financial Summary (Partial: adapted) 2015 (Dollar amounts in thousands except per share data) Net Sales Net Sales Increase Domestic Comparative Store Sales Increase Other Income- Net Cost of Goods Sold Selling and Administrative Expenses Interest 2020 2019 20182017 2016 $ 310000 s 214000 S 193.000 S 161,000 $ 133,000 17% 9% 2010 1,800 1,760 1,680 1,350 234 980 162 640 150,154 126.224 105,070 45% 11.111% 6% 20% 5% 21% 7% 5% 41 240 36,310 31,690 27430 22.520 (1110)(1,350) (1.380) (1,000)(900) 105 155200 180 170 4.490 3,900 3,650 3.330 2,700 0 295 11,755 8,086 4 876 3.330 Interest Expense Interest Income Income Tax Expense Net Income Per Share of Common Stock 120 0 90 0.80 060 0.38 Net Income 0.40 0.380.340.300.26 Dividends Financial Position Current Assets, Excluding Merchandise Inventory Merchandise Inventory at LIFO Cost Property, Plant, and Equipment, Not Total Assets Current Liabilities Long-term Debt Stockhoders Fn 30,000 S 27,800 26,500 24.200 s 21.100 24 500 22,700 21.900 19,80017.300 $16.900 51.700 45 700 41 100 35,800 26,000 106.200 96 200 89 500 79,80064,400 32,700 27,500 28.100 26,100 16,50 22.800 21,500 17.500 18.600 12.200 35.700 s0 700470.90035 100 Stockholders' Equity Financial Ratios Acid-Test Ratio Rate of Retun on Total Assets Rate of Return on Stockholders' Equity 50700 47 20043,900 35,100 35,700 1.3 310% 141% 112% 81% 71% 619% 258% 20 5% 13.8% 13.3% 0.9 1.0 0.9 0.9 PrintlDone