PLEASE READ AND ANSWER ALL REQUIREMENTS, AS THIS IS ALL ONE QUESTION. THANK YOU!
Requirements - X Analyze the company's financial summary for the fiscal years 2014-2018 to decide whether to invest in the common stock of WRM. 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 WRM Athletic Supply, Inc.? Fully explain your final decision. Print Done i Financial Summary - X 2013 26% 2014 133,000 17% 9% 1,380 105,203 22,510 WRM Athletic Supply, Inc. Five-Year Financial Summary (Partial; adapted) (Dollar amounts in thousands except per share data) 2018 2017 2016 2015 Net Sales Revenue $ 270,000 $ 215,000 $ 197,000 $ 168,000 $ Net Sales Revenue Increase 9% 17% 26% Domestic Comparative Store Sales Increase 5% 6% 5% 7% Other Income-Net 2,020 1,810 1,770 1,700 Cost of Goods Sold 202,770 164,260 152,675 131,544 Selling and Administrative Expenses 41,240 36,350 31,670 27,408 Interest: Interest Expense (1,020) (1,310) (1,320) (1,060) Interest Income 140 140 180 200 Income Tax Expense 4,440 3,810 3,620 3,340 Net Income 22,690 11,220 9,665 6,548 Per Share of Common Stock: Net Income 1.90 1.60 1.50 1.30 Dividends 0.35 0.33 0.29 0.25 Financial Position Current Assets, Excluding Merchandise Inventory 31,100 $ 27,000 $ 27,100 $ 25,000 $ Merchandise Inventory 24,600 22,200 22,000 19,600 (850) 160 2,790 3,187 1.08 0.21 21,300 17,600 $ 16,600 Print Print Done Homework: Appendix D Homework 3 of 3 (1 complete) Score: 0 of 1 pt PD-29A (similar to) In its annual report, WRM 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 L % % % % % Net income % % % Requirements - X Analyze the company's financial summary for the fiscal years 2014-2018 to decide whether to invest in the common stock of WRM. 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 WRM Athletic Supply, Inc.? Fully explain your final decision. Print Done i Financial Summary - X 2013 26% 2014 133,000 17% 9% 1,380 105,203 22,510 WRM Athletic Supply, Inc. Five-Year Financial Summary (Partial; adapted) (Dollar amounts in thousands except per share data) 2018 2017 2016 2015 Net Sales Revenue $ 270,000 $ 215,000 $ 197,000 $ 168,000 $ Net Sales Revenue Increase 9% 17% 26% Domestic Comparative Store Sales Increase 5% 6% 5% 7% Other Income-Net 2,020 1,810 1,770 1,700 Cost of Goods Sold 202,770 164,260 152,675 131,544 Selling and Administrative Expenses 41,240 36,350 31,670 27,408 Interest: Interest Expense (1,020) (1,310) (1,320) (1,060) Interest Income 140 140 180 200 Income Tax Expense 4,440 3,810 3,620 3,340 Net Income 22,690 11,220 9,665 6,548 Per Share of Common Stock: Net Income 1.90 1.60 1.50 1.30 Dividends 0.35 0.33 0.29 0.25 Financial Position Current Assets, Excluding Merchandise Inventory 31,100 $ 27,000 $ 27,100 $ 25,000 $ Merchandise Inventory 24,600 22,200 22,000 19,600 (850) 160 2,790 3,187 1.08 0.21 21,300 17,600 $ 16,600 Print Print Done Homework: Appendix D Homework 3 of 3 (1 complete) Score: 0 of 1 pt PD-29A (similar to) In its annual report, WRM 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 L % % % % % Net income % % %
