PC-29A Comple ting a comprehensive financial statement analysis In its annual report, ABC Athletic Supply, Inc. includes the following five-year financial summary: Learning Objectives 2, 4 3. 2018: Inventory turnover 8.04 ABC ATHLETIC SUPPLY, INC. Five-Year Financial Summary (Partial; adapted) 2013 2014 2015 2016 2017 2018 (Dollar amounts in thousands except per share data) $161,000 134,000 $191,000 $250,000 $216,000 Net Sales Revenue 17% 20% 19% 13% 16% Net Sales Revenue Increase 7% 9% 4% 6% 5% Domestic Comparative Store Sales Increase 1,690 1,330 1,760 1,840 2,110 Other Income-Net 106,396 126,385 164,592 148,216 189,250 Cost of Goods Sold 22,540 27,440 31,620 36,330 41,210 Selling and Administrative Expenses Interest: (1,400) (1,020) (830) (1,080) (1,380) Interest Expense 155 235 190 165 125 Interest Income 2,700 3.900 3,700 3,320 4,470 Income Tax Expense 3,054 7,979 4,760 16,225 11,803 Net Income Per Share of Common Stock: 1.20 1.00 0.78 1.30 1.60 Net Income 0.38 0.34 0.30 0.26 0.40 Dividends Financial Position Current Assets, Excluding Merchandise Inventory Merchandise Inventory $ 21,500 $26,700 $ 30,700 $27,200 $ 24,400 $16,700 17,500 21,700 19,000 24,500 22,600 45,200 25,600 40,000 35,100 Property, Plant, and Equipment, Net 51,400 78,500 64,600 Total Assets 106,600 95,000 88,400 16,500 28,300 28,000 25,000 Current Liabilities 32,300 12,000 Long-term Debt Stockholders' Equity 21,500 17,600 19,100 23,000 36,100 42,500 34,400 51,300 45,500 Financial Ratios Acid-Test Ratio 1.3 1.0 0.9 1.0 1.0 Rate of Return on Total Assets 8.1% 7.1% 14.4% 11.2% 17.2% Rate of Return on Common Stockholders' Equity 13.0% 20.8% 13.5% 33.5% 26.8% O XIaN3dd V Financ Requirements Analyze the company's financial summary for the fiscal years 2014-2018 to decide whether to invest in the common stock of ABC. 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 pay debts. to 5. Evaluation of dividends. 6. Should you invest in the common stock of ABC Athletic Supply, Inc.? Fully explain your final decision