Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Requirements Analyze the company's financial summary for the fiscal years 2014-2018 to decide whether to invest in the common stock of WILWIL. Include the following

image text in transcribed

Requirements

Analyze the company's financial summary for the fiscal years

2014-2018image text in transcribed

to decide whether to invest in the common stock of

WILWIL.

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

WILWIL

Athletic Supply, Inc.? Fully explain your final decision.
Homework: ACC-260 Benchmark - Topic 7 Assignment Save Score: 0 of 30 pts 5 of 6 (5 completa) HW Score: 32.63%, 32.63 of 100 pts PC-29A (similar to) oration Financial Suruary In its annual report, WIL Alloc Supply, Turcludes the following live your financial summary: (Click the icon to view the financial summary: Read the requirements 2013 Requirement 1. Complete trend analysis for nel salice and retineamus fuxe 2014 as the base yuar). (Round to the nearest whole percent) 2018 2017 2018 2015 2014 Natale 5 $ Natiname 55 Requirements Aralyze the company's finanna ummary for the fiscal years 2014-2018 ha dando whathar to invest in the common stock of WIL. Include the following sections in your analysis 1. Trend analysis forme des revenue and relincome (use 2014 as the 1959 Five-Year Financial Summary (Partial; adapted (Dollar amounts in thousands except per share data) 2018 2017 2018 2015 2014 Net Sales Revenue $ 270.000 $ 220,000 3 193,000 S 163,000 5 132,000 Net Sales Revenue Increase 14% 18% 2355 17% Domestic Camarahin Star Halasin Dar income Na 2080 1,700 1,770 1.610 1,340 Cost of Goods Sold 204.680 180,000 149,981 127.792 104,940 Saling and Administrative Expenses 41.280 38,356 31,870 27.400 22,570 Indret Inter! Ewenee (1,010) (1,330) 11.380 (1.070) (870) Interest Income 115 150 185 205 180 Income Tax ExD 4.490 3,640 3360 2,780 Notinem 200 5518 Per Share of Carmen Sock Net Income 1.70 1.40 1.30 1.10 0.00 Dividends 0.40 0.38 0.34 0:30 0.26 Financial Position Current Asants, Excluding Merchandise Inventory S 30.800 $ 27,300 $ 28,900 S 25,100 $ 21,600 Murchandise Invertory 24 200 23,000 21,900 19.500 17,700 3 Properly, Plari, and Equimoni, Nel 51.000 45,800 40,400 35.600 25,300 Total Assets 106,00 85,600 83,200 80,200 34,800 Current Liabile 32.700 27,600 28,000 25,300 16,700 Long-hom Daly 226 21,100 16,00 18300 12,700 Storkholdiers' Equity 51,1001 41.00 25,400 Financial Ratios Ald-Test Ratio 019 10 11 10 13 Hate of Rotum on Total Assets 21.14 14.8% 11.49 Rate of Rulum on Stockholders Equily 42.4% 27.3% 20.8% 14.45 13.9% 2. Profitability anayo 3. Evluation of the ability to 991 merchandise inwertory 4. Evaluation of the abiity to pay debts 5. Evaluation of Man 6. Should you invest in the common stock of WL Ashchi: Supay inc? Fuly explain your final deciso 17.100 Print Done Print Done Enter any number in the edit fields and then click Check Answer. i Financial Summary - X 2013 Five-Year Financial Summary (Partial; adapted) (Dollar amounts in thousands except per share data) 2018 2017 2016 2015 2014 Net Sales Revenue $ 270,000 $ 220,000 $ 193,000 $ 163,000 $ 132,000 Net Sales Revenue Increase 23% 14% 18% 23% 17% Domestic Comparative Store Sales Increase 5% 7% 5% 7% 9% Other Income-Net 2,060 1,790 1,770 1,610 1,340 Cost of Goods Sold 204,660 168,080 149,961 127,792 104,940 Selling and Administrative Expenses 41,260 36,356 31,679 27,408 22,570 Interest: Interest Expense (1,010) (1,330) (1,380) (1,070) (870) Interest Income 115 150 195 205 180 Income Tax Expense 4,490 3,850 3,640 3,360 2,780 Net Income 20,755 12,324 8,305 5,185 2,360 Per Share of Common Stock: Net Income 1.70 1.40 1.30 1.10 0.88 Dividends 0.40 0.38 0.34 0.30 0.26 Financial Position Current Assets, Excluding Merchandise Inventory $ 30,600 $ 27,300 $ 26,900 $ 25,100 $ 21,800 Merchandise Inventory 24,200 23,000 21,900 19,500 17,700 $ Property, Plant, and Equipment, Net 51,600 45,300 40,400 35,600 25,300 Total Assets 106,400 95,600 89,200 80,200 64,800 Current Liabilities 32,700 27,600 29,000 25,300 16.700 Long-term Debt 22,600 21,100 16,800 18,300 12,700 Stockholders' Equity 51,100 46,900 43,400 36,600 35,400 Financial Ratios Acid-Test Ratio 0.9 1.0 0.9 1.0 1.3 Rate of Return on Total Assets 21.5% 14.8% 11.4% 8.6% 7.6% Rate of Return on Stockholders' Equity 42.4% 27.3% 20.8% 14.4% 13.9% 17,100 Print Done Homework: ACC-260 Benchmark - Topic 7 Assignment Save Score: 0 of 30 pts 5 of 6 (5 completa) HW Score: 32.63%, 32.63 of 100 pts PC-29A (similar to) oration Financial Suruary In its annual report, WIL Alloc Supply, Turcludes the following live your financial summary: (Click the icon to view the financial summary: Read the requirements 2013 Requirement 1. Complete trend analysis for nel salice and retineamus fuxe 2014 as the base yuar). (Round to the nearest whole percent) 2018 2017 2018 2015 2014 Natale 5 $ Natiname 55 Requirements Aralyze the company's finanna ummary for the fiscal years 2014-2018 ha dando whathar to invest in the common stock of WIL. Include the following sections in your analysis 1. Trend analysis forme des revenue and relincome (use 2014 as the 1959 Five-Year Financial Summary (Partial; adapted (Dollar amounts in thousands except per share data) 2018 2017 2018 2015 2014 Net Sales Revenue $ 270.000 $ 220,000 3 193,000 S 163,000 5 132,000 Net Sales Revenue Increase 14% 18% 2355 17% Domestic Camarahin Star Halasin Dar income Na 2080 1,700 1,770 1.610 1,340 Cost of Goods Sold 204.680 180,000 149,981 127.792 104,940 Saling and Administrative Expenses 41.280 38,356 31,870 27.400 22,570 Indret Inter! Ewenee (1,010) (1,330) 11.380 (1.070) (870) Interest Income 115 150 185 205 180 Income Tax ExD 4.490 3,640 3360 2,780 Notinem 200 5518 Per Share of Carmen Sock Net Income 1.70 1.40 1.30 1.10 0.00 Dividends 0.40 0.38 0.34 0:30 0.26 Financial Position Current Asants, Excluding Merchandise Inventory S 30.800 $ 27,300 $ 28,900 S 25,100 $ 21,600 Murchandise Invertory 24 200 23,000 21,900 19.500 17,700 3 Properly, Plari, and Equimoni, Nel 51.000 45,800 40,400 35.600 25,300 Total Assets 106,00 85,600 83,200 80,200 34,800 Current Liabile 32.700 27,600 28,000 25,300 16,700 Long-hom Daly 226 21,100 16,00 18300 12,700 Storkholdiers' Equity 51,1001 41.00 25,400 Financial Ratios Ald-Test Ratio 019 10 11 10 13 Hate of Rotum on Total Assets 21.14 14.8% 11.49 Rate of Rulum on Stockholders Equily 42.4% 27.3% 20.8% 14.45 13.9% 2. Profitability anayo 3. Evluation of the ability to 991 merchandise inwertory 4. Evaluation of the abiity to pay debts 5. Evaluation of Man 6. Should you invest in the common stock of WL Ashchi: Supay inc? Fuly explain your final deciso 17.100 Print Done Print Done Enter any number in the edit fields and then click Check Answer. i Financial Summary - X 2013 Five-Year Financial Summary (Partial; adapted) (Dollar amounts in thousands except per share data) 2018 2017 2016 2015 2014 Net Sales Revenue $ 270,000 $ 220,000 $ 193,000 $ 163,000 $ 132,000 Net Sales Revenue Increase 23% 14% 18% 23% 17% Domestic Comparative Store Sales Increase 5% 7% 5% 7% 9% Other Income-Net 2,060 1,790 1,770 1,610 1,340 Cost of Goods Sold 204,660 168,080 149,961 127,792 104,940 Selling and Administrative Expenses 41,260 36,356 31,679 27,408 22,570 Interest: Interest Expense (1,010) (1,330) (1,380) (1,070) (870) Interest Income 115 150 195 205 180 Income Tax Expense 4,490 3,850 3,640 3,360 2,780 Net Income 20,755 12,324 8,305 5,185 2,360 Per Share of Common Stock: Net Income 1.70 1.40 1.30 1.10 0.88 Dividends 0.40 0.38 0.34 0.30 0.26 Financial Position Current Assets, Excluding Merchandise Inventory $ 30,600 $ 27,300 $ 26,900 $ 25,100 $ 21,800 Merchandise Inventory 24,200 23,000 21,900 19,500 17,700 $ Property, Plant, and Equipment, Net 51,600 45,300 40,400 35,600 25,300 Total Assets 106,400 95,600 89,200 80,200 64,800 Current Liabilities 32,700 27,600 29,000 25,300 16.700 Long-term Debt 22,600 21,100 16,800 18,300 12,700 Stockholders' Equity 51,100 46,900 43,400 36,600 35,400 Financial Ratios Acid-Test Ratio 0.9 1.0 0.9 1.0 1.3 Rate of Return on Total Assets 21.5% 14.8% 11.4% 8.6% 7.6% Rate of Return on Stockholders' Equity 42.4% 27.3% 20.8% 14.4% 13.9% 17,100 Print Done

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting A Business Perspective

Authors: Roger H. Hermanson, James Don Edwards

7th Edition

0072289988, 978-0072289985

More Books

Students also viewed these Accounting questions