Select the formula reference in the last column of the table and enter the eamings per share for each year. (Round to the nearest cent, X.XX.) (Click the icon to view the formulas.) 2018 2017 2016 2015 2014 Formula Earnings per share Choose from any list or enter any number in the input fields and then click Check Answer JU in its annual report WAM Athletic Suply, Inc. includes the following five-year financial summary: Click the icon to view the financial summary) Read the regulaments 228 875 163 % 374 145 254 100 % Requirement Compute the trend analysis for net sales and net income (use 2014 as the base yaw) (Round to the nearest whole percent) 2018 2017 2016 2015 2014 Net sales 120 Net Income 163 100 % Trends in not sales and not income are both uward which is positive Requirement 2. Compute the profitability analysis Begin by selecting the appropriate measurement that should be used to completo a prottability analyut. Camings per share of common stock Profit margin ratio Rate of return on total ansat Rate of return on common stockholders' equity Select the formula reference in the last column of me table and enter the earnings per share for each year (Round to the nearestent, XXX) Click the icon to view the formulas) 2018 2017 2016 2015 2014 Formula Earnings per share Choose from any list or anter any number in the input fields and then click Check Answer Financial Summary 2013 20% WAM Athletic Supply, Inc. Five-Year Financial Summary (Partial; adapted) (Dollar amounts in thousands except per share data) 2018 2017 2016 2015 2014 Net Sales Revenue $ 310,000 $ 222,000 $ 197,000 $ 163,000 $ 136,000 Net Sales Revenue Increase 40% 13% 21% 17% Domestic Comparative Store Sales Increase 4% 6% 5% 7% 9% Other Income-Net 2,090 1,850 1,710 1,630 1,340 Cost of Goods Sold 234,980 169,386 152,281 127,303 107,848 Selling and Administrative Expenses 41,240 36,356 31,660 27,408 22,580 Interest: Interest Expense (1,000) (1,370) (1,390) (1,090) (840) Interest Income 120 175 180 200 145 Income Tax Expense 4,480 3,860 3,660 3,360 2,730 Net Income 30,510 13,053 9,899 5,669 3,487 Per Share of Common Stock: 1.70 1.40 1.30 1.10 0.88 Net Income 0.45 0.43 0.39 0.35 0.31 Dividends Financial Position $ 30,200 $ 28,000 $ 27,100 $ 24,700 $ 21,700 Current Assets, Excluding Merchandise Inventory Print Done (1,000) 120 (1,390) 180 (1.090) 200 (1.370) 175 3,860 13,053 (840) 145 2,730 3,487 4,480 30,510 3,660 9,899 3,360 5,669 1.40 1.30 0.88 1.70 0.45 1.10 0.35 0.43 0.39 0.31 $ 30,200 $ 28,000 $ Interest Expense 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 Acid-Test Ratio Rate of Return on Total Assets Rate of Retum on Stockholders' Equity 16,000 24,200 51,700 106,100 32,700 22,500 50,900 22,300 45,500 95,800 27.300 20,800 47.700 27,100 $ 24,700 $ 21.400 19.100 40,800 35,700 89,300 80,500 29,000 25,700 16,800 18.400 43,500 36,400 21,700 18,100 $ 25.700 65,500 16,600 12,300 38,600 0.9 1.0 0.9 1.0 1.3 13.3% 8.3% 31.2% 61.9% 15.6% 28.6% 9.3% 15.5% 24.8% 15.0% ..... Requirements Analyze the company's financial summary for the fiscal years 2014-2018 to decide whether to invest in the common stock of WAM. 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 WAM Athletic Supply, Inc.? Fully explain your final decision. Print Done
