M/2012021 Financial Summary XYZ Athletic Supply, Inc. Five-Year Financial Summary (Partial; adapted) (Dollar amounts in thousands except per share data) 2018 2017 2016 2015 2014 2013 Net Sales Revenue Net Sales Revenue Increase Domestic Comparative Store Sales Increase Other Income-Net Cost of Goods Sold Selling and Administrative Expenses Interest: Interest Expense Interest Income Income Tax Expense Net Income $ 275,000 $ 222,000 $ 199,000 $ 171,000 $ 131,000 24% 12% 16% 31% 17% 6% 6% 5% 8% 10% 2,090 1,780 1,770 1,700 1,310 208,725 169,386 154,822 134,235 103.883 41.280 36,340 31,670 27,450 22.540 (1,070) (1,370) (1,330) 150 (1.100) 230 (800) 140 140 155 3,610 3,390 2,730 4,420 21.735 3,900 12.939 9,488 6,755 2.497 Per Share of Common Stock: 0.70 0.50 0.28 0.39 0.35 0.31 21,800 16,800 26,800 $ 24,400 S 21,600 19,300 40,500 35,000 88,900 78,700 95,800 Net Income 1.10 0.80 Dividends 0.45 0.43 Financial Position Current Assets, Excluding Merchandise Inventory S 30,900 $ 27,200 S Merchandise Inventory 24,700 22,400 Property, Plant, and Equipment, Net 51,600 46,200 Total Assets 107,200 Current Liabilities 32,600 27,800 Long-term Debt 23,000 21,200 Stockholders' Equity 51,600 46,800 Financial Ratios Acid-Test Ratio 0.9 1.0 Rate of Return on Total Assets 22.5% 15.5% Rate of Return on Stockholders' Equity 44.2% 28.7% 17.000 $ 25,200 64,000 17,000 12.900 28,800 25,600 16,800 18.600 43,300 34,500 34.100 0.9 1.0 1.3 12.9% 11.0% 10.0% 24.4% 19.7% 19.2% https://www.mathxl.com/Student/PlayerHomework.aspx Thomeworkid=66609979&questionId=1&flushed=false&cd=6576592&back=https://www.math.co... VI In its annual report, XYZ Athletic Supply, Inc. includes the following five-year financial summary: B (Click the icon to view the financial summary.) Read the requirements Requirement 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 % % % Requirements % Net sales % Net income % Analyze the company's financial summary for the fiscal years 2014-2018 to decide whether to invest in the common stock of XYZ. 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 XYZ Athletic Supply, Inc.? Fully explain your final decision Print Print Done
