WAM Athletic Supply, Inc. Five-Year Financial Summary (Partial; adapted) 2018 2017 2016 2015 2014 2013 (Dollar amounts in thousands except per share data) Net Sales Revenue $ 260,000 $ 222,000 $ 195,000 $ 170,000 $ 17% 14% 15% 22% 139,000 17% Net Sales Revenue Increase 6% 7% 4% 8% 9% 2,120 1,810 1,720 1.700 1,350 Domestic Comparative Store Sales Increase Other IncomeNet Cost of Goods Sold Selling and Administrative Expenses Interest: 150,930 133,620 110,505 196,560 41,240 169,830 36,310 31,670 27,408 22,560 Interest Expense (1,330) (1,320) (900) (1,110) 145 (1,040) 190 Interest Income 180 195 145 Income Tax Expense 3,870 3,680 3,300 2,720 4,480 18,875 Net Income 12,650 9,315 6,522 3,810 Per Share of Common Stock: Net Income 1.70 1.40 1.30 1.10 0.88 Dividends 0.40 0.38 0.34 0.30 0.26 Financial Position $ 30,600 $ 27,100 $ 26,400 $ 24,500 $ 21,800 24,100 23,000 21,600 19,900 16,400 Current Assets, Excluding Merchandise Inventory Merchandise Inventory Property, Plant, and Equipment, Net Total Assets 17,100 $ 26,000 52,000 45,700 40,600 35,300 106,700 95,800 88,600 79,700 64,900 Current Liabilities 32,200 27,500 28,200 25,200 16,000 Print Done Domestic comparative swore Sales Tcrease 0% 7% 4% 0% 97 Other Income-Net 2,120 1,810 1,720 1,700 1,350 196,560 150,930 133,620 110,505 Cost of Goods Sold Selling and Administrative Expenses 169,830 36,310 41,240 31,670 27,408 22,560 Interest: Interest Expense (1,330) (1,320) (900) (1,110) 145 (1,040) 190 Interest Income 180 195 145 Income Tax Expense 4,480 3,870 3,680 3,300 2,720 Net Income 18,875 12,650 9,315 6,522 3,810 Per Share of Common Stock: Net Income 1.70 1.40 1.30 1.10 0.88 Dividends 0.40 0.38 0.34 0.30 0.26 Financial Position $ 26,400 $ 24,500 $ 21,800 30,600 $ 27,100 $ 24,100 23,000 17,100 $ 16,400 Current Assets, Excluding Merchandise Inventory Merchandise Inventory Property, Plant, and Equipment, Net Total Assets 52,000 45,700 21,600 40,600 88,600 19,900 35,300 79,700 26,000 64,900 106,700 95,800 Current Liabilities 32,200 27,500 25,200 16,000 28,200 17,800 Long-term Debt 22,400 21,900 18,100 13,000 Stockholders' Equity 52,100 46,400 42,600 36,400 35,900 Financial Ratios Acid-Test Ratio 1.0 1.0 0.9 1.0 1.4 Rate of Return on Total Assets 19.7% 15.2% 12.6% 10.5% 9.5% Rate of Return on Stockholders' Equity 38.3% 28.4% 23.6% 18.0% 17.5% Print Done In its annual report, WAM Athletic Supply, Inc. includes the following five-year financial summary: Click the icon to view the financial summary.) Read the requirements. Requirement 1. Compute the trend analysis for net sales and net income (use 2014 as the base year). (Round to the nearest whole percent.) 2018 2016 2015 2014 Net sales 187 % 2017 160 % 332 % 100 % 140 % 244 % 122 % 171 % Net income 495 % 100 % Trends in net sales and net income are both upward which is positive. Requirement 2. Compute the profitability analysis. Begin by selecting the appropriate measurements that should be used to complete a profitability analysis. Earnings per share of common stock Profit margin ratio Rate of return on total assets Rate of return on common stockholders' equity 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.) 2 (Click the icon to view the formulas.) 2016 2014 2018 2017 2015 $ 1.70 $ 1.40 $ 1.30 $ 1.10 Formula (n.) Earnings per share 0.88 Select the formula reference in the last column of the table and compute the profit margin ratio for all five years. (Enter your answers as percentages rounded to the nearest tenth percent, X.X%) (Click the icon to view the formulas.) 2018 2017 2016 2015 2014 Formula (k.) Profit margin ratio 7.3 % 5.7 % 4.8 % 3.8 % 2.7 % Choose from any list or enter any number in the input fields and then click Check Answer. In its annual report, WAM Athletic Supply, Inc. includes the following five-year financial summary: B Click the icon to view the financial summary.) Read the requirements. Requirement 2. Compute the profitability analysis. Begin by selecting the appropriate measurements that should be used to complete a profitability analysis. Earnings per share of common stock Profit margin ratio Rate of return on total assets Rate of return on common stockholders' equity 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.) .) 2017 2018 2016 2015 Earnings per share $ 1.70 $ 1.40 $ 1.30 $ 1.10 2014 0.88 Formula (n.) Select the formula reference in the last column of the table and compute the profit margin ratio for all five years. (Enter your answers as percentages rounded to the nearest tenth percent, X.X%.) (Click the icon to view the formulas.) ) 2018 2017 2016 2015 2014 Formula (k.) Profit margin ratio 7.3 % 5.7 % 4.8 % 3.8 % 2.7 % Select the formula reference in the last column of the table and enter the rate of return on total assets and the rate of return on common stockholders' equity for each year. (Enter your answe as percentages to the tenth percent, X.X%.) (Click the icon to view the formulas.) 2018 2017 2016 2015 2014 Formula % % % % Rate of return on total assets Rate of return on common stockholders' equity % % % % % % Choose from any list or enter any number in the input fields and then click Check