WRM ATHLETIC SUPPLY, INC. Five-Year Financial Summary (Partial; adapted) (Dollar amounts in thousands except per share data) Net Sales Net Sales Increase Domestic Comparative Store Sales Increase Other Income-Net Cost of Goods Sold Selling and Administrative Expenses Interest: 2020 2019 2018 2017 2016 2015 290,000 215,000 194,000 165,000 139,000 17% 10% 1,300 218,660 163,400 50,350 129,360 110,227 41,236 36,356 31,679 27,408 22,516 11% 7% 1,810 18% 19% 8% 1.660 2,050 1,790 (1,010 1,360) ,370) (1,060) 225 3.380 (870) 155 2,760 4,082 Interest Expense Interest Income Income Tax Expense Net Income Per Share of Common Stock: 165 3,690 8,866 4,430 3,830 26,834 12,024 Net Income 1.40 1.20 0.98 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 0.38 0.34 0.30 0.26 S 30,400 27,500 26,200 24,900 21,700 24,200 22,500 21,400 19,9007,100 16,400 51,100 45,600 40,700 35,200 25,900 105,700 95,600 88,300 80,000 64,700 32,200 27,100 28,700 25,800 16,700 22,600 21,700 17,100 18,300 12,600 50,900 46,800 42,500 35,900 35,400 14.6% 12.2% 277% 54.9% 9.3% 15.9% 8.3% 15.4% 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. E e. Evaluation of dividends valuation of the ability to pay debts