Scenaria 2 On a whim you buy a scrach-of iotlery tcoks and win sio coo. Wou decide that the prudent welion woud be to invest thit meney by purchasing shares in a publicly traded company. Your triend, Nutale. recommended that you shoud look at Escalade. internstional because she beleves that is ifock is a sale investenent with sonificant relaled is Escalade from the illemet 1 at 3 2Additond intomation 1. Cash devidendi of $9,000 mere declared and pad in ated. 2. Wrightedaverage number of shares of comeron stock aussanding duing 202was 30.000 shures. 3. Market value of common slack en Decanber 3t, zotid was 521 per shave 4. Industry averbges for comparison: - Curent rimo-41 - Return en common docinoider s ecuely - 1647 - Proe edrings ratio -18.4 times - Earnings per share-5135 2 of 3 - Average Collection Puriod-31 2 days - Average dars in imentory - 27.t dipa - Quick rabo -2.1 - Tines inserest eirned- 60 times - Prefir merein - 10.2 - Fefurn on assets -7.9\% - Debt rafo - fet. - Equity ratio - 48y - Debt to-ogerty ratio - 1.0g - Average Collection Period-31.2 days - Average days in inventory - 27.1 days - Quick ratio - 2:1 - Times interest earned-6.0 times - Profit margin - 10.2% - Return on assets 7.9% - Debt ratio - 52% - Equity ratio - 48% - Debt-to-equity ratio - 1.08 Required Analyze the financial statements and make a determination about whether you would purchase shares of Escalade? Be sure to provide justification for your decision. My expectation is that you perform a ratio analysis and, in your justification, discuss the results of that analysis in relation to the industry averages. On a whim, you buy a scratch-off lottery ticket and win $10,000. You decide that the prudent action would be to invest this money by purchasing shares in a publicly-traded company. Your friend, Natalie, recommended that you should look at Escalade, International because she believes that its stock is a safe investment with significant growth potential. You decide to pull the following, abbreviated financials and information related to Escalade from the internet: 2Additional information ESCALADE, NCORPORATED Comparative Balance Sheet Enr the Vear Fnilad Neramher 21 on>? ESCALADE, INCORPORATED Income Statement For the Year Ended December 31. 2023 1. Cash dividends of $9,000 were declared and paid in 2023. 2. Weighted-average number of shares of common stock outstanding during 2023 was 30,000 shares. 3. Market value of common stock on December 31, 2023, was \$21 per share 4. Industry averages for comparison: - Current ratio - 4:1 - Return on common stockholder's equity - 16.4% - Price-earnings ratio - 18.4 times - Earnings per share $1.35 - Average Collection Period-31.2 days - Average days in inventory - 27.1 days - Quick ratio - 2:1 - Times interest earned-6.0 times - Profit margin - 10.2% - Return on assets 7.9% - Debt ratio - 52% - Equity ratio - 48% - Debt-to-equity ratio - 1.08 Required Analyze the financial statements and make a determination about whether you would purchase shares of Escalade? Be sure to provide justification for your decision. My expectation is that you perform a ratio analysis and, in your justification, discuss the results of that analysis in relation to the industry averages
