In its annual report, WRS Athletic Supply, Inc., includes the following five-year financial summary.
Requirement:
1. Analyze the compan's financial summary for the fiscal years 2011-2015 to decide whether to invest in the common stock of WRS. Including the following sections in your analysis, and fully explain your final decision.
A. Trend analysis for net sales and net income (use 2011 as base year)
B. Profitability analysis
C. Measuring abilitiy to sell inventory (WRS uses the LIFO method)
D. Measuring the ability to pay debts.
E Evaluate the dividends.
by clicking on(+ Learning Path nquiry WRS ATHLETIC SUPPLY IN Five-Year Financial Summary (Partial: adapted) 2011 2010 (Dollar amosents in thoNSands except per share data) 2015 2014 2013 2012 24 $217,79 Net sales increase 14% 16% 20% 17% Domestic comparative store sales increase 2,001 1,873 1,787 1,615 1,391 Cost of sal 191,838 171, S62 150,255 129,664 108,725 Operating, selling, and general and 41,236 36,356 31,679 27408 22,516 1,063 1,357 1,383 1,045 803 Interest expense (138) (171) (188) (204) (189) 4487 3,897 3,692 3,338 2,740 Income tax expense Net income 8,039 6,671 6,295 5,377 4,430 Per shi Net income 0.30 028 0.24 30A83 27,878 26,555 24,356 21,132 Current assets, excluding inventory 24,891 22,614 21,442 19,793 17,076 $16,497 Property, plant, and equipment, net 51,904 45,750 40,934 35,969 25,973 94,685 83,527 78,130 70,349 49,996 32,617 27,282 28,949 25,803 16,762 70352 322,7310 rt21.143 r 17,838 18 712 12,122 39.337 35.102 31.343 25.834 21.112 Shareholders' equity 10.7% 9 Rate of return on shareholders' equity Requirement 1. Analyze the company's financial summary for the fiscal years 2011-2015 to decide whether to invest in the common stock of WRS. Include the following sections in your analysis, and fully cxplain your final decision. a. Trend analysis for net sales and net income (use 2011 as the base ycar). b. Profitability analysis. the ability to scll inventory (WRS uscs the LIFO hod d. Evaluate the ability to pay debts by clicking on(+ Learning Path nquiry WRS ATHLETIC SUPPLY IN Five-Year Financial Summary (Partial: adapted) 2011 2010 (Dollar amosents in thoNSands except per share data) 2015 2014 2013 2012 24 $217,79 Net sales increase 14% 16% 20% 17% Domestic comparative store sales increase 2,001 1,873 1,787 1,615 1,391 Cost of sal 191,838 171, S62 150,255 129,664 108,725 Operating, selling, and general and 41,236 36,356 31,679 27408 22,516 1,063 1,357 1,383 1,045 803 Interest expense (138) (171) (188) (204) (189) 4487 3,897 3,692 3,338 2,740 Income tax expense Net income 8,039 6,671 6,295 5,377 4,430 Per shi Net income 0.30 028 0.24 30A83 27,878 26,555 24,356 21,132 Current assets, excluding inventory 24,891 22,614 21,442 19,793 17,076 $16,497 Property, plant, and equipment, net 51,904 45,750 40,934 35,969 25,973 94,685 83,527 78,130 70,349 49,996 32,617 27,282 28,949 25,803 16,762 70352 322,7310 rt21.143 r 17,838 18 712 12,122 39.337 35.102 31.343 25.834 21.112 Shareholders' equity 10.7% 9 Rate of return on shareholders' equity Requirement 1. Analyze the company's financial summary for the fiscal years 2011-2015 to decide whether to invest in the common stock of WRS. Include the following sections in your analysis, and fully cxplain your final decision. a. Trend analysis for net sales and net income (use 2011 as the base ycar). b. Profitability analysis. the ability to scll inventory (WRS uscs the LIFO hod d. Evaluate the ability to pay debts
