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Please provide work on how as well, thank you. Learning Objectives 2,4 PC-29A Completing a comprehensive financial statement analysis In its annual report, ABC Athletic
Please provide work on how as well, thank you.
Learning Objectives 2,4 PC-29A Completing a comprehensive financial statement analysis In its annual report, ABC Athletic Supply, Inc. includes the following five-year financial summary: 3. 2018: Inventory turnover 8.04 ABC ATHLETIC SUPPLY, INC. Five-Year Financial Summary (Partial; adapted) (Dollar amounts in thousands except per share data) 2013 Net Sales Revenue Net Sales Revenue Increase Domestic Comparative Store Sales Increase 2018 $ 250,000 16% 5% 2,110 189,250 2017 2016 $216,000 $191,000 13% 19% 6% 4% 1,840 1 ,760 164,592 148,216 36,33031,620 2015 $ 161,000 20% 7% 1,690 126,385 27,440 2014 $134,000 17% 9% 1,330 106,396 22,540 Other Income-Net 41,210 (1,380) Cost of Goods Sold Selling and Administrative Expenses Interest: Interest Expense Interest Income Income Tax Expense Net Income Per Share of Common Stock: Net Income Dividends 165 (1,080) 125 4,470 16,225 (1,400) 155 3,700 7,979 (1,020) 235 3,320 4,760 (830) 190 2,700 3,054 3,900 11,803 1.60 0.78 1.30 0.38 1.20 0.34 1.00 0.30 0.40 0.26 $ 16,700 Financial Position Current Assets, Excluding Merchandise Inventory Merchandise Inventory 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 Common Stockholders' Equity $ 30,700 24,500 51,400 106,600 32,300 23,000 51,300 $ 27,200 22,600 45,200 95,000 28,000 21,500 45,500 $ 26,700 21,700 40,000 88,400 28,300 17,600 42,500 $ 24,400 19,000 35,100 78,500 25,000 19,100 34,400 $ 21,500 17,500 25,600 64,600 16,500 12,000 36,100 10100.9. 17.2% 14.4% 11.2% 33.5% 26.8% 20.8% 1.0 8.1% 13.5% 1.3 7.1% 13.0% Requirements Analyze the company's financial summary for the fiscal years 20142018 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 to pay debts. 5. Evaluation of dividends. 6. Should you invest in the common stock of ABC Athletic Supply, Inc.? Fully explain your final decisionStep by Step Solution
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