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Trend analysis for net sales and net income Analyzing a company for iu investment potential In its annual report, WRM Athletic Supply, Inc. includes the
Trend analysis for net sales and net income
Analyzing a company for iu investment potential In its annual report, WRM Athletic Supply, Inc. includes the following five-year financial WRM ATHLETIC SUPPLY, fiveYear financial Summary (Partial' adapted) (Doffer amounts thousands except per Share data) 2020 2019 2018 Net Sales Domtic Comiratil? Store Sales Other IncomeNet C of Goods Sold Selling and Admntstratl'& Expenses Interest Interest' Expense Interest Income Income Tax net Income Per Common Stcxk: net Income Dividencis Financial Cwrent Asset% Inventory at LIFO Property, Plant, and Equipment. Net ictal Assets Cutient Liabilities Long-term Debt Egoity Financial Ratios Nod-lest te 01 on Total 01' Return on Cornrnrn Equity Requiremenu 290.000 S 50,900 09 3,330 12,024 Boo 194,030 t 390 31,679 165 3.690 8.866 26200 aoroo es-300 42500 2017 s 165.000 1*660 129,360 27,408 226 3,380 5.677 030 24.900 19.900 35,200 sc.ooo 25,800 18,300 35,900 2016 139,000 j 3CO (870) 55 2,760 4,082 026 17,no 25,900 12, 2015 S '16*00 L fiscal years 2016-2020 to decidewhethectoinvestinthe common stock of WRM, Include the following sections in your analysis, and fully explain your final decision. a. b. d. e. Trend analysis for net sales and net income (use 2016 as the base year), Profitability analysis. Evaluation of the ability to sell merchmdise inventory (WRM uses the LIFO method). Evaluation ofthe ability to pay debts. Evaluation of dividends.
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