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Please help with all requirements. Thank you! In its annual report, WZB Athletic Supply, Inc. includes the following five-year financial summary: (Click the icon to
Please help with all requirements. Thank you!
In its annual report, WZB Athletic Supply, Inc. includes the following five-year financial summary: (Click the icon to view the financial summary.) Read the requirements. Requirement 1. 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 Net sales 237 % 121 % 100 % 159 % 360 % 143 % 273 % Net income 928 % 176 % 100 % Trends in net sales and net income are both upward which is positive Requirement 2. Compute the profitability analysis. Begin by selecting the appropriate measurements that should be used to complete a profitability analysis. Profit margin ratio Rate of return on total assets Rate of return on common stockholders' equity Earnings per share of common stock Select the formula reference in the last column of the table and enter the earnings per share for each year. (Round to the nearest cent, X.XX.) (Click the icon to view the formulas.) 2018 2017 2016 2015 2014 Formula Earnings per share Choose from any list or enter any number in the input fields and then click Check Answer. 20 Pemaining Clear All - X Requirements Analyze the company's financial summary for the fiscal years 2014-2018 to decide whether to invest in the common stock of WZB. 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 WZB Athletic Supply, Inc.? Fully explain your final decision. print-out. WZB 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 $ 330,000 $ 221,000 $ 199,000 $ 168,000 $ 139,000 Net Sales Revenue Increase 49% 11% 18% 21% 17% Domestic Comparative Store Sales Increase 5% 7% 4% 7% 9% Other Income-Net 2,020 1.890 1.770 1,630 1,290 Cost of Goods Sold 250,470 167,960 154,026 131,376 110,505 41,250 36,350 31,640 27,420 22,570 Selling and Administrative Expenses Interest: Interest Expense (1,050) (1,330) (1,360) (1,090) (860) Interest Income 105 140 185 205 170 Income Tax Expense 4,420 3,850 3,650 3,340 2.760 Net Income 34,935 13,540 10,279 6,609 3,765 Per Share of Common Stock: Net Income 1.80 1.50 1.40 1.20 0.98 Dividends 0.30 0.28 0.24 0.20 0.16 Financial Position $ 30,300 $ 28,100 $ 26,900 $ 24,600 $ 21,200 Current Assets, Excluding Merchandise Inventory Merchandise Inventory Property, Plant, and Equipment, Net 24,700 23.000 21,400 19,900 17,100 $ 16,500 51,900 46,100 40,100 36,100 25.900 Total Assets 106,900 97,200 88,400 80,600 64,200 Current Liabilities 32,400 27,100 29.000 26,000 16,000 Long-term Debt 22,500 21,900 17,200 19,000 12,400 52,000 48,200 42,200 35,600 35,800 Stockholders' Equity Financial Ratios Acid-Test Ratio 0.9 1.0 0.9 0.9 1.3 Rate of Return on Total Assets 35.3% 16.0% 13.8% 10.6% 9.6% Rate of Return on Stockholders' Equity 69.7% 30.0% 26.4% 18.5% 18.0%Step by Step Solution
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