WRM Athletic Supply, Inc. Five-Year Financial Sumary (partial; adapted)
Dollar amounts in thousands	2020	2019	2018	2017	2016	2015
Net Sales	$290000	$215000	$194000	$165000	$139000
Net Sales increase	35%	11%	18%	19%	17%
Domestic Comparative Store Sales Increase	5%	7%	5%	8%	10%
Other Income- Net	2050	1810	1790	1660	1300
Cost of Good Sold	218660	163400	150350	129360	110227
Selling and Administrative Expenses	41236	36356	31679	27408	22516
Interest:
Interest Expense	-1010	-1360	-1370	-1060	-870
Interest Income	120	160	165	225	155
Income Tax Expense	4430	3830	3690	3380	2760
Net Income	26834	12024	8866	5677	4082
Per Share of Common Stock:
Net income	1.80	1.50	1.40	1.20	.98
Dividends	.40	.38	.34	.30	.26
Financial position:
Current Assets, Excluding Merchandise Inventory	30,400	27,500	26200	24900	21700
Merchandise inventory at LIFO cost	24200	22500	21400	19900	17100	16400
Poperty, plant, and equipment, Net	51100	45600	40700	35200	25900
Total Assets	105700	95600	88300	80000	64700
Current Liabilites	32200	27100	28700	25800	16700
Long-term Debt	22600	21700	17100	18300	12600
Stockholders' Equity	50900	46800	42500	35900	35400
Fiancial Rations:
Acid-Test Ratio	.9	1.0	.9	1.0	1.3
Rate of return on total assets	27.7%	14.6%	12.2%	9.3%	8.3%
Rate of return on common stockholders' equity	54.9%	26.9%	22.6%	15.9%	15.4%

Analyze a company for its investment potential

Requirements:

1. Analyze the company's financial summary for the fiscal years 2016-2020 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. Trend analysis for net sales and net income (use 2016 as the base year).

b. Profitability analysis

c. Evaluation of the ability to sell merchandise inventory (WRM uses the LIFO method).

d. Evaluation of the ability to pay debts.

e. Evaluation of dividends

Please list the step-by-step process, thank you!