Requirements Analyze the company's financial summary for the fiscal years 2014-2018 to decide whether to invest in the common stock of XYZ. 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 XYZ Athletic Supply, Inc.? Fully explain your final decision. Print Done Clear All Financial Summary 2013 5% XYZ Athletic Supply, Inc. Five-Year Financial Summary (Partial; adapted) (Dollar amounts in thousands except per share data) 2018 2017 2016 2015 Net Sales Revenue $ 275,000 $ 222,000 $ 199,000 $ 171,000 $ Net Sales Revenue Increase 24% 12% 16% 31% Domestic Comparative Store Sales Increase 6% 6% 8% Other Income-Net 2,090 1,780 1,770 1,700 Cost of Goods Sold 208,725 169,386 154,822 134 235 Selling and Administrative Expenses 41,280 36,340 31,670 27,450 Interest: Interest Expense (1,070) (1,370) (1,330) (1.100) Interest Income 140 155 150 230 Income Tax Expense 4,420 3,900 3,610 3,390 Net Income 21,735 12,939 9,488 6,755 Per Share of Common Stock: Net Income 1.10 0.80 0.70 0.50 Dividends 0.45 0.43 0.39 0.35 2014 131,000 17% 10% 1,310 103,883 22,540 (800) 140 2,730 2.497 0.28 0.31 Print [Done i Financial Summary 155 T4U 4,420 3,900 12,939 150 3,610 9,488 230 3,390 6,755 2,730 2,497 21,735 1.10 0.45 0.80 0.43 0.70 0.39 0.50 0.35 0.28 0.31 interest income Income Tax Expense Net Income Per Share of Common Stock: Net Income Dividends 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 1.200 30.900 $ 24.700 51,600 107 200 32.600 23,000 51,600 27.200 S 22.400 46,200 95,800 27 800 21,200 46,800 26,800 $ 24,400 $ 21,600 19,300 40,500 35,000 88,900 78.700 28,800 25,600 16,800 18,600 43,300 34,500 21,800 17.000 $ 25 200 64,000 17,000 12,900 34,100 Acid-Test Ratio Rate of Return on Total Assets Rate of Return on Stockholders' Equity 0.9 22.5% 44.2% 0 1. 15.5% 28.7% 0 .0 12.9% 24.4% 1.0 11,0% 19.75 92% Print Done Requirements Analyze the company's financial summary for the fiscal years 2014-2018 to decide whether to invest in the common stock of XYZ. 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 XYZ Athletic Supply, Inc.? Fully explain your final decision. Print Done its annual report, XYZ Athletic Supply, Inc. includes the following five-year financial summary: (Click the icon to view the financial summary.) ead the requirements Eequirement 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 Net income % % Question Viewer Enter any number in the edit fields and then click Check Answer Clear A 23 parts 23 remaining inancial Summary 2013 2014 131,000 XYZ Athletic Supply, Inc. Five-Year Financial Summary (Partial; adapted) (Dollar amounts in thousands except per share data) 2018 2017 2016 2015 Net Sales Revenue $ 275,000 $ 222,000 $ 199,000 $ 171,000 $ Net Sales Revenue Increase 24% 12% 16% 31% Domestic Comparative Store Sales Increase 6% 6% 5% 8% Other Income-Net 2,090 1,780 1,770 1,700 Cost of Goods Sold 208,725 169,386 154,822 134,235 Selling and Administrative Expenses 41,280 36,340 31,670 27,450 Interest: Interest Expense (1.070) (1,370) (1,330) (1.100) Interest Income 155 150 230 Income Tax Expense 4,420 3,900 3,610 3,390 Net Income 21,735 12,939 9,488 6,755 Per Share of Common Stock Net Income 1.10 0.80 0.70 0.50 Dividends 0.45 0.43 0.39 0.35 10% 1,310 103,883 22,540 (800) 140 140 2.730 2.497 0.28 0.31 Print Done 740 ou 4,420 21.735 3,900 12,939 750 3,610 9,488 230 3,390 6,755 2,730 2,497 interest income Income Tax Expense Net Income Per Share of Common Stock: Net Income Dividends 0.80 0.70 1.10 0.45 0.50 0.35 0.28 0.31 0.43 0.39 Financial Position 16,800 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 Stockholders' Equity 30,900 $ 24,700 51,600 107,200 32,600 23,000 51,600 27,200 $ 22,400 46,200 95,800 27,800 21,200 46,800 26,800 $ 24,400 $ 21,600 19,300 40,500 35,000 88,900 78,700 28,800 25,600 16,800 18,600 43,300 34,500 21,800 17,000 $ 25,200 64,000 17,000 12,900 34,100 0.9 0.9 1,0 22.5% 44.2% 15.5% 28.7% 12.9% 24.4% 11.0% 19.7% 1.3 10.0% 19.2% Print Done