In its annual report, BALLI Supply includes the following five-year financial summary:

Requirement
1. Analyze the company€™s financial summary for the fiscal years 2008€“2012 to decide whether to invest in the common stock of BALLI. Include the following sections in your analysis, and fully explain your final decision.
a. Trend analysis for net sales and net income (use 2008 as the base year)
b. Profitability analysis
c. Measuring ability to sell inventory
d. Measuring ability to pay debts
e. Measuringdividends

BALLI Supply, Inc. Five-Year Financial Summary (partial) (Dollar Amounts in Thousands Except per Share Dala) Net Sales Net sales increase # of store increase Other Income, Net Cost of Goods Sold Selling, General, and 2008 S244,524 8217,799 S191 329 S165,013 S137,634 2012 2011 2010 2009 14% 6% 20% 8% 12% 16% 17% 1,391 191,838171,562 150,255 129.664108,725 2.001 1,873 1,787 1,615 Administrative Expenses 41,043 36,17331,550 27,040 22,363 Interest Costs Interest Expense Interest Income 1,383 (188) 6,295 1,045 (204) 5,377 1,063 1,357 803 (189) 4,430 8,039 Net Income Per Share of Common Stock: 6.671 Net Income 1.21 0.20 0.99 0.28 Dividends Financial Position Current Assets Inventories at LIFD Cost Net Property, Piant, and Ent51,9045750 Total Assets Current Liabilities Long-Term Debt 0.24 | S 26.555 40,934 0.30 S 30,483 | S 27,878 |$ 24,356 35,969 28,949 25,803 | $ 21,132 24.891 22614 21.442 19,793 17,076 25,973 94,685 83,52778,130 70,349 49,996 32,617 27,282 19,608 18,73215,655 16,674 39.337 35,102 9,607 21,112 Financial Ratios Current ratio Return on assets Return on shareholders' equity 0.9 9.2% 21.6% 8.5% 20 1% 8.7% 22.0% 9.5% 22.9% 9.6% 22.4%