Individual Project ACC 122 - Winter Individ CC 122 - Winter 2018 - Ford W ual Project -Analyzing the Investment Potential of a WRS ATHLETIC SUPPLY, INC. Fve-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 2013 2015 2018 2017 1244524 217,799 191,329 65,013 137 634 % 14% 16% -20% 17 191,833 171,562 150,255 129,664 108,725 Operating, Selling, and General and Administrative Expenses Interest: 41.236 36,356 31679 7408 22,516 11,063) (1.357) 1.383) 1.045) (803) 189 Interest Expense 204 138 Interest Income Ircome Tax Expense Net Income Per Share of Common Stock: 4,487 3.8973692 3.3382.74 8,0396,671 6,2955.3774.430 1.49 Net Ircome 0.300.280.240.20 0.16 Dividends Financial Position Current Assets, Excluding Merchandise Inventory Merchandise Inventory at LIFO Cost Property, Plant, and Equipment, Net Total Assets Current Liabilities 30,483 27,878 26,555 S 24,356S 21,132 24.891 22.61421.442 19.79317076 $16.497 1,904: 45,75040,93435,96925,973 94,685 83,527 78.130 70,34949.996 32,617 27,282 28,949 25,80316,762 22,731 21,14317,83818,712 12,122 39,337 35,10231,343 25,834 21,112 Shareholders' Equity Financial Ratios Acid-test Ratio Rate of Return on Total Assets Rate of Return on Shareholders' Equity 9.6% 10.7% 22 9% 10.2% 9.9% 10.3% 20.1% 22.0% , 22.4% 21.6% Requirements 1. Analyze the company's financial sumimary for the fiscal years 2014-2013 to decide whether to invest in the common stock of WRS. Include the following sections in your analysis, and fully explain your final decision. 1. Trend analysis for net sales and net income (use 2014 as the base ycar) 2. Prafitability analysis 3. Evaluation of the ability to sell merchandise inventory (WRS uses the LIFO method) 4. Evaluation of the ability to pay debts 5. Evaluation of dividends