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What us the market price per share of common stock? Course Preiect - Comprehensive Problem for Chapter 17 Analyzing a company for its investment potential
What us the market price per share of common stock?
Course Preiect - Comprehensive Problem for Chapter 17 Analyzing a company for its investment potential In its annual report, WRM Athletic Supply, Inc. includes the following five-year financial summary: WRM ATHLETIC SUPPLY, INC. Five-year Financial Summary (Partial; adapted) (Dollar amounts in thousands except per share data) 2020 Net Sales Net Sales Increase Domestic Comparative Store Sales Increase Other Income_Net Cost of Goods Sold Selling and Administrative Expenses Interest: Interest Expense Interest Income ncome Tax Expense Net Income Per Share of Common Stock: Net Income Dividends Financial Position Current Assets, Excluding Merchandise Inventory Merchandise Inventory at LIFO Cost 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 Common Stockholders' Equity Requirements S 290,000 5% 2,050 218,660 2019 215,000 7% 1,810 163,400 36,356 (1 ,360) 160 3,830 12,024 1.50 0.38 27,500 22,500 45,600 95,600 27,100 21,700 46,800 1.0 14.6% 26.9% 2018 s 194,000 5% 1 ,790 1 50,350 31 ,679 (l ,370) 165 3,690 8,866 1.40 0.34 s 26,200 21,400 40,700 88,300 28,700 17,100 42,500 0.9 12.2% 22.6% 2017 s 165,000 19% 8% 1,660 129,360 27,408 (1 ,060) 225 3,380 5,677 1.20 0.30 s 24,900 19,900 35,200 80,000 25,800 18,300 35,900 1.0 9.3% 15.9% 2016 s 139,000 7% I ,300 110,227 s 41 ,236 (1,010) 120 4,430 26,834 I .80 0.40 30,400 24,200 51 , 100 105,700 32,200 22,600 50,900 0.9 27.7% 54.9% s 22,51 6 (870) 155 2,760 4,082 0.98 0.26 21,700 17,100 25,900 64,700 1 6,700 12,600 35,400 1.3 15.4% 2015 $ 16,400 1. Analyze the company's financial summary for the fiscal years 20162020 to decide whether to invest in the common stock of WRM. Include the following sections in your analysis, and fully explain your final decision. a. b. c. d. e. Trend analysis for net sales and net income (use 2016 as the base year). Profitability analysis Evaluation of the ability to sell merchandise inventory (WRM uses the LIFO method). Evaluation of the ability to pay debts. Evaluation of dividends.
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