Requirements Analyze the company's financial summary for the fiscal years 2020-2024 to decide whether to invest in the common stock of WZB. Include the following sections in your analysis. 1. Trend analysis for net sales revenue and net income (use 2020 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 WZB Athletic Supply, Inc.? Fully explain your final decision. Print Done Financial summary - 2019 4% WZB Athletic Supply, Inc. Five-Year Financial Summary (Partial; adapted) (Dollar amounts in thousands except per share data) 2024 2023 2022 2021 2020 Net Sales Revenue $ 310,000 $ 222.000 $ 200,000 $ 164,000 $ 140,000 Net Sales Revenue Increase 40% 11% 22% 17% 17% Domestic Comparative Store Sales Increase 5% 7% 7% 10% Other Income-Net 2,020 1,800 1,730 1,660 1,320 Cost of Goods Sold 234.980 169,608 155,600 128,412 111,300 Selling and Administrative Expenses 41,280 36,390 31.660 27.450 22,580 Interest: Interest Expense (1,090) (1.330) (1,340) (1.010) (870) Interest Income 140 185 200 180 140 Income Tax Expense 4,400 3,840 3,670 3,390 2,790 Net Income 30,410 12,817 9,660 5,578 3,920 Per Share of Common Stock Net Income 1,50 1.20 1.10 0.90 0.68 Dividends 0.45 0.43 0.39 0.35 0.31 Financial Position Current Assets. Excluding Merchandise Inventory S 30.100 S 28.100 S 26.000 $24.000 S 21.300 1.20 1.10 1.50 0.45 0.90 0.35 0.68 0.31 0.43 0.39 $ 21,300 17,000 $ 16.400 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 Return on Stockholders' Equity 30,100 S 28,100 $ 24,100 22,100 52,000 45,800 106,200 96,000 32,400 27.700 22,600 21.000 51,200 47.300 26,000 $ 24,000 $ 21,800 20,000 40,500 36,700 88,300 80,700 28,800 25,500 17,800 18,600 41,700 36,600 25,500 63,800 16,200 12.900 34,700 0.9 1.0 0.9 0.9 1.3 31.2% 61.7% 15.4% 28.8% 13.0% 24.7% 9.1% 15,6% 8.1% 15.1% Formulas Ref. Formula (a.) 365 days + Inventory turnover (6.) Annual dividend per share + Earnings per share (c.) Annual dividend per share + Market price per share (d.) (Cash including cash equivalents + Short-term investments + Net current receivables) + Total current liabilities (e.) Cost of goods sold + Average merchandise inventory (f.) Current assets - Current liabilities (9.) Gross profit + Net sales revenue (h.) Market price per share of common stock Earnings per share (i.) Net credit sales + Average net accounts receivables 0.) (Net income + Income tax expense + Interest expense) + Interest expense (k.) Net income + Net sales (L.) (Net income + Interest expense) + Average total assets (m) (Net income - Preferred dividends) + Average common stockholders equity (n.) (Net income - Preferred dividends) + Weighted average-number of common shares outstanding (0) Total current assets - Total current liabilities (p.) Total liabilities. Total assets (9.) Total liabilities - Total equity Requirement 1. Computo the trend analysis for net sales and net income (use 2020 as the base year). (Round to the nearest whole percent.) % % % % % 2024 2023 2022 2021 2020 Net sales % % % Net Income Trends in net sales and net income are both V. which is Requirement 2. Compute the profitability analysis Begin by selecting the appropriate measurements that should be used to complete a profitability analysis. Select the formula reference in the last column of the table and enter the earnings per share for each year. (Round to the nearest cent, X.XX.) Click the icon to view the formulas.) 2024 2023 2022 2021 2020 Formula Earnings per share Select the formularence in the last count of the table and compute the profit margin ratio for at five yours. (En your pre rounded to the percent XXX the cow the form 2004 2023 2002 2021 2020 Formula Select the forma orice column of the table and enter the rate om onts and the role of mon commodo equity for each yew (Enter your page to the XX1 Con to view the fuls) 2024 2023 2022 2021 2020 Formula Remonto Rate of return on comment The margin reunondum erity over the years the moderatum inoyath yow we both tve the wing prihari Requirement to that we Bagn Byg pro should be the wolventory and the procesove come 2023 Select the formula reference in the last column of the table and enter the the gross profit percentage for each year. (Round your answers to the nearest tent (Click the icon to view the formulas.) 2024 2022 2021 2020 Formula Gross profit percentage % % % Select the formula reference in the last column of the table and compute the inventory turnover for each year. (Round the intermediary calculation to the nea (Click the icon to view the formulas.) 2024 2023 2022 2021 2020 Formula Inventory tumover Select the formula reference in the last column of the table and compute the days' sales In Inventory for each year. (Round intermediary calculations to two du below to one decimal place, XX) (Click the icon to view the formulas.) 2024 2023 2022 2021 2020 Formula Days' sales in inventory Inventory turnover has over the period examined, which is a sign. The company is seling inventory rapidly Requirement 4. Evaluate the ability to pay debts. Begin by selecting the appropriate measurements that should be used to measure the ability to pay debts. Select the formula reference in the last column of the table and enter the acid-test ratio for each year. (Round the ratio to one decimal place, X.X. (Click the icon to view the formulas.) 2024 2023 2022 2021 2020 Formula Acid-test ratio Select the formula reference in the last column of the table and compute the current ratio for each year. (Round the ratio to two decimal places, (Click the icon to view the formulas.) 2024 2023 2022 2021 2020 Formula Current ratio Now compute the debt ratio. (Round your answers to the nearest tenth percent, XX%.) (Click the icon to view the formulas.) 2024 2023 2022 2021 2020 Formula Debt ratio % % % % % SERRURIER PRyeol CN, AMI de forma 2024 2023 2022 2021 2020 Formule Send a loma netrance in the last column of the table and compute the time teamed to for each year(Round the nation to two decimal places, XBOX) Gia the conto the form 2024 2023 2012 2021 2030 Formula Timescamoto we u o 0 0 1.00 comptable in ment notre Acument to for companies on our around 1.80 The were de rito termost companies ranges from 57% 100% Whey variation from cong A The way The com py is obitel. The company's do so wetu (de) www andnaily Ngh, which the company making pay for the medias om 2000 2038 which Regiments. Even Bici e mette is evidente Er der har for each year onde Xxx) 2024 2022 2021 2020 Owend or share Select the forma reference in the last column of the table and collate the dividend payout for each year Round yours to the nearest while percent XS) Celoon to view the outs) 2024 2023 2022 2021 2020 Ond you 1% The dividend per share testheses Sequirement. Show with cook of WZDA Swely you wonders overy moves per hand have in WC divided w A move There roolin Wanda Theron Requirements Analyze the company's financial summary for the fiscal years 2020-2024 to decide whether to invest in the common stock of WZB. Include the following sections in your analysis. 1. Trend analysis for net sales revenue and net income (use 2020 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 WZB Athletic Supply, Inc.? Fully explain your final decision. Print Done Financial summary - 2019 4% WZB Athletic Supply, Inc. Five-Year Financial Summary (Partial; adapted) (Dollar amounts in thousands except per share data) 2024 2023 2022 2021 2020 Net Sales Revenue $ 310,000 $ 222.000 $ 200,000 $ 164,000 $ 140,000 Net Sales Revenue Increase 40% 11% 22% 17% 17% Domestic Comparative Store Sales Increase 5% 7% 7% 10% Other Income-Net 2,020 1,800 1,730 1,660 1,320 Cost of Goods Sold 234.980 169,608 155,600 128,412 111,300 Selling and Administrative Expenses 41,280 36,390 31.660 27.450 22,580 Interest: Interest Expense (1,090) (1.330) (1,340) (1.010) (870) Interest Income 140 185 200 180 140 Income Tax Expense 4,400 3,840 3,670 3,390 2,790 Net Income 30,410 12,817 9,660 5,578 3,920 Per Share of Common Stock Net Income 1,50 1.20 1.10 0.90 0.68 Dividends 0.45 0.43 0.39 0.35 0.31 Financial Position Current Assets. Excluding Merchandise Inventory S 30.100 S 28.100 S 26.000 $24.000 S 21.300 1.20 1.10 1.50 0.45 0.90 0.35 0.68 0.31 0.43 0.39 $ 21,300 17,000 $ 16.400 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 Return on Stockholders' Equity 30,100 S 28,100 $ 24,100 22,100 52,000 45,800 106,200 96,000 32,400 27.700 22,600 21.000 51,200 47.300 26,000 $ 24,000 $ 21,800 20,000 40,500 36,700 88,300 80,700 28,800 25,500 17,800 18,600 41,700 36,600 25,500 63,800 16,200 12.900 34,700 0.9 1.0 0.9 0.9 1.3 31.2% 61.7% 15.4% 28.8% 13.0% 24.7% 9.1% 15,6% 8.1% 15.1% Formulas Ref. Formula (a.) 365 days + Inventory turnover (6.) Annual dividend per share + Earnings per share (c.) Annual dividend per share + Market price per share (d.) (Cash including cash equivalents + Short-term investments + Net current receivables) + Total current liabilities (e.) Cost of goods sold + Average merchandise inventory (f.) Current assets - Current liabilities (9.) Gross profit + Net sales revenue (h.) Market price per share of common stock Earnings per share (i.) Net credit sales + Average net accounts receivables 0.) (Net income + Income tax expense + Interest expense) + Interest expense (k.) Net income + Net sales (L.) (Net income + Interest expense) + Average total assets (m) (Net income - Preferred dividends) + Average common stockholders equity (n.) (Net income - Preferred dividends) + Weighted average-number of common shares outstanding (0) Total current assets - Total current liabilities (p.) Total liabilities. Total assets (9.) Total liabilities - Total equity Requirement 1. Computo the trend analysis for net sales and net income (use 2020 as the base year). (Round to the nearest whole percent.) % % % % % 2024 2023 2022 2021 2020 Net sales % % % Net Income Trends in net sales and net income are both V. which is Requirement 2. Compute the profitability analysis Begin by selecting the appropriate measurements that should be used to complete a profitability analysis. Select the formula reference in the last column of the table and enter the earnings per share for each year. (Round to the nearest cent, X.XX.) Click the icon to view the formulas.) 2024 2023 2022 2021 2020 Formula Earnings per share Select the formularence in the last count of the table and compute the profit margin ratio for at five yours. (En your pre rounded to the percent XXX the cow the form 2004 2023 2002 2021 2020 Formula Select the forma orice column of the table and enter the rate om onts and the role of mon commodo equity for each yew (Enter your page to the XX1 Con to view the fuls) 2024 2023 2022 2021 2020 Formula Remonto Rate of return on comment The margin reunondum erity over the years the moderatum inoyath yow we both tve the wing prihari Requirement to that we Bagn Byg pro should be the wolventory and the procesove come 2023 Select the formula reference in the last column of the table and enter the the gross profit percentage for each year. (Round your answers to the nearest tent (Click the icon to view the formulas.) 2024 2022 2021 2020 Formula Gross profit percentage % % % Select the formula reference in the last column of the table and compute the inventory turnover for each year. (Round the intermediary calculation to the nea (Click the icon to view the formulas.) 2024 2023 2022 2021 2020 Formula Inventory tumover Select the formula reference in the last column of the table and compute the days' sales In Inventory for each year. (Round intermediary calculations to two du below to one decimal place, XX) (Click the icon to view the formulas.) 2024 2023 2022 2021 2020 Formula Days' sales in inventory Inventory turnover has over the period examined, which is a sign. The company is seling inventory rapidly Requirement 4. Evaluate the ability to pay debts. Begin by selecting the appropriate measurements that should be used to measure the ability to pay debts. Select the formula reference in the last column of the table and enter the acid-test ratio for each year. (Round the ratio to one decimal place, X.X. (Click the icon to view the formulas.) 2024 2023 2022 2021 2020 Formula Acid-test ratio Select the formula reference in the last column of the table and compute the current ratio for each year. (Round the ratio to two decimal places, (Click the icon to view the formulas.) 2024 2023 2022 2021 2020 Formula Current ratio Now compute the debt ratio. (Round your answers to the nearest tenth percent, XX%.) (Click the icon to view the formulas.) 2024 2023 2022 2021 2020 Formula Debt ratio % % % % % SERRURIER PRyeol CN, AMI de forma 2024 2023 2022 2021 2020 Formule Send a loma netrance in the last column of the table and compute the time teamed to for each year(Round the nation to two decimal places, XBOX) Gia the conto the form 2024 2023 2012 2021 2030 Formula Timescamoto we u o 0 0 1.00 comptable in ment notre Acument to for companies on our around 1.80 The were de rito termost companies ranges from 57% 100% Whey variation from cong A The way The com py is obitel. The company's do so wetu (de) www andnaily Ngh, which the company making pay for the medias om 2000 2038 which Regiments. Even Bici e mette is evidente Er der har for each year onde Xxx) 2024 2022 2021 2020 Owend or share Select the forma reference in the last column of the table and collate the dividend payout for each year Round yours to the nearest while percent XS) Celoon to view the outs) 2024 2023 2022 2021 2020 Ond you 1% The dividend per share testheses Sequirement. Show with cook of WZDA Swely you wonders overy moves per hand have in WC divided w A move There roolin Wanda Theron
