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In its annual report,WYZ Athletic Supply, Inc. includes the following five-year financial summary. Requirement 1. Analyze the company's financial summary for the fiscal years 2016-2020

In its annual report,WYZ Athletic Supply, Inc. includes the following five-year financial summary.

image text in transcribedRequirement

1.

Analyze the company's financial summary for the fiscal years 2016-2020 to decide whether to invest in the common stock of WYZ. Include the following sections in your analysis, and fully explain your final decision.

b.

image text in transcribed

Profitability analysis.

c.

Evaluation of the ability to sell merchandise inventory (WYZ uses the LIFO method).

d.

Evaluation of the ability to pay debts.

e.

Evaluation of dividends.

WYZ Athletic Supply, Inc. Five-Year Financial Summary (Partial; adapted) (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 2018 2017 2016 2015 $ 245,000 $ 219.000 $ 190,000 S 160,000 S 133.000 15% 6% 1,850 19% 17% 10% 1,290 184,730 166,878 147,250 125,440 105.469 41,290 36,330 31,690 27,440 22,530 12% 5% 2,120 20% 7% 1,610 1,700 Interest Expense (1,110) (1,310) 1,320) 1,020) 220 3,640 3,320 7,990 4,610 (820) 160 2.770 2,861 190 150 3.820 15,680 ,662 Interest Income 130 Income Tax Expense Net Income Per Share of Cormmon Stock: 4,440 Net Income 1.70 1.40 1.30 1.10 0.88 Dividends 0.45 0.43 0.39 0.35 0.31 Financial Position Current Assets, Excluding Merchandise Inventory $30,800 S 27,000 $ 27,000 S 24,100 Merchandise Inventory at LIFO Cost 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 21,400 25,100 22,600 21,600 20,000 17,000 $ 16,900 51,200 45,900 40,500 36,000 25,400 107,100 95.500 89,10080,100 63.800 32,200 27,800 28,600 25,700 16,100 22,900 20,800 17,400 19,000 .700 52,000 46,900 43,100 35,400 35,000 0.9 11.0% 20.4% 0.9 6.8% 12.6% 16.6% 15.1% 31.7% 28.1% 13.1%

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