In its annual report, WRM Athletic Supply, Inc. includes the following five-year financial summary: Requirements Analyze the
Question:
Requirements
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.
Transcribed Image Text:
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 2019 2018 2017 2016 2015 S 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 35% 5% 2,050 1896 5% 1,790 19% 8% 1,660 11% 1,810 (870) 155 4,4303,830 3,690 3,380 2,760 4,082 Interest Expense 1,010 360) ,370) 1,060) 225 Interest Income Income Tax Expense Net Income Per Share of Common Stock 120 160 165 26,834 2,024 8,866 5,677 Net Income 1.80 1.50 140 1.20 0.98 0.40 0.38 0.34 0.26 Financial Position Current Assets, Excluding Merchandise Inventory Merchandise Inventory at LIFO Cost Property, Plant, and Equipment, Net Total Assets Curent Liabilities Long-term Debt Stockholders Equity Financial Ratios Acid-Test Ratio Rate of Return on Total Assets Rate of Return on Common Stockholders' Equity $ 30,400 27,500 26,200 24,900 21,700 24,200 22,500 21,400 19,900 7,100 16,400 51,100 45,600 40,700 35,200 25,900 05,700 95,600 88,300 80,000 64,700 32,200 27,100 28,700 25,800 16,700 22,600 21,700 7,100 18,300 12,600 50,900 4,800 42,500 35,90035,400 9.3% 15.9% 8.3% 15.4% 27.7% 14.6% 26.9% 12.2% 22.6% 54.9%
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 85% (7 reviews)
Requirement a 2020 2019 2018 2017 2016 Net Sales 290000 215000 194000 165000 139000 Trend Percentages 209 155 140 119 1000 Net Income 26834 12024 8866 5677 4082 Trend Percentages 657 295 217 139 1000 ...View the full answer
Answered By
Sufiyan Ahmed Tariq
I am a Chartered Accountant and an Associate Public & Finance Accountant. I also hold a bachelors of Commerce degree. I have over 8 years of experience in accounting, finance and auditing. Through out my career, I have worked with many leading multinational organisation.
I have helped a number of students in studies by teaching them key concepts of subjects like accounting, finance, corporate law and auditing. I help students understanding the complex situation by providing them daily life examples.
I can help you in the following subject / areas:
a) Accounting;
b) Finance;
c) Commerce;
d) Auditing; and
e) Corporate Law.
4.90+
7+ Reviews
17+ Question Solved
Related Book For
Horngrens Accounting
ISBN: 978-0133866889
11th edition
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura
Question Posted:
Students also viewed these Managerial Accounting questions
-
In its annual report, WRS Athletic Supply, Inc. includes the following five- year financial summary. Requirements 1. Analyze the companys financial summary for the fiscal years 20142018 to decide...
-
Analyzing a company for its investment potential In its annual report, WRM Athletic Supply, Inc. includes the following five-year financial summary: Requirements Analyze the companys financial...
-
In its annual report, ABC Athletic Supply, Inc. includes the following five-year financial summary: Requirements Analyze the company's financial summary for the fiscal years 2014-2018 to decide...
-
1-Kristen prefaces her speech by talking about her inability to save or invest money. For that reason, she does her speech on an online money management course and focuses on the skills she learned...
-
After its second year of operations, the following amounts were taken from the accounting records of Lisko Services, Inc., as of December 31, 2008. Lisko Services began its operations on January 1,...
-
Over the past four years the gross profit rate for Simard Company was 26%. Last week a fire destroyed all of Simards inventory. Luckily, all the records for Simard were in a fireproof safe and...
-
Daphne Brown-Wright worked as a teacher for East St. Louis School District 189 from 1975 until 1998 and then returned as an administrator from 2002 until 2012, thus serving the District for 33...
-
Condensed balance sheet and income statement data for Kersenbrock Corporation appear below. Additional information: 1. The market price of Kersenbrocks common stock was $4.00, $5.00, and $8.00 for...
-
A contractor has to move 15 300 Bank m 3 of wet sandy material in rear dump trucks, which will be loaded by an excavator. Average face depth will be 2.4 m with 60-90 degree average swing angle. Ten...
-
The following data was taken from the production and accounting records for Casuccio Manufacturing, Inc. Required a. Calculate the following ratios for 2023, 2022, and 2021: 1. Sales to total assets....
-
Use Starbucks Corporation's Fiscal 2013 Annual Report to answer the following questions. Visit www.pearsonhighered.com/Horngren to view a link to the Starbucks Corporation Annual Report. Requirements...
-
Glass Doctor Company manufactures sunglasses. Following is a list of costs the company incurred during May. Use the list to calculate the total manufacturing overhead costs for the month. Glue for...
-
Refer to the information for Luisa Crimini above. Luisa Crimini has been operating a beauty shop in a college town for the past 10 years. Recently, Luisa rented space next to her shop and opened a...
-
7. A sample of a monatomic ideal gas containing 6.00 1023 atoms in a volume of 8.00 10-3 m is initially in thermal equilibrium with its surroundings at 300 K. The gas is made to expand until the...
-
1. Compare and contrast the 2 sections of the pituitary gland. a. tissue type? b. control? c. connection to hypothalamus? d. hormones? e. production of hormones? Storage? 2) Describe the target and...
-
An Introduction to Spatial Data Analysis in R and Visualisation in R- a newly finalized (May 2017) PDF document providing an excellent series of tutorials on the use of R for Spatial Data Analysis...
-
Are companies reporting under U.S. GAAP required to prepare statements of stockholders' equity? Explain.
-
Florence's Floral Designs has the following general ledger account balances as of August. Purchases $ 63,711 Freight in 4,500 Purchases returns and allowances 1,250 Purchases discounts 1,050...
-
Jennifer let her cousin use her computer during a recent visit. Without Jennifers permission the cousin visited several web sites that sold pornography. Now Jennifer is receiving spam from similar...
-
Vectors are drawn from the center of a regular n-sided polygon in the plane to the vertices of the polygon. Show that the sum of the vectors is zero.
-
Refer to Problem 12-33. To help pay for the pickup truck the Ogi Corp. obtained a $10,000 loan from the truck dealer, payable in four end-of-year payments of $2500 plus 10% interest on the loan...
-
The management of a private hospital is considering the installation of an automatic telephone switchboard, which would replace a manual switchboard and eliminate the attendant operator's position....
-
A contractor has to choose one of the following alternatives in performing earth-moving contracts: (a) Purchase a heavy-duty truck for $13,000. Salvage value is expected to be $3000 at the end of the...
-
2) Consider the following classes: public interface Vehicle{} public class Car implements Vehicle{} public class Toyota extends Car () and the following declarations: Object obj = null; Vehicle v =...
-
response. Design an adaptive filter and check the frequency Try different length of w(n), identify plant H. Try different input signals x(n), such as: white noise, chirp signal and other signals we...
-
8) Compute the tax liability for each of the following taxpayers, including any child tax credit: a) Norm and Nancy, both ages 46, are married, have two qualified children (ages 13 and 14), and file...
Study smarter with the SolutionInn App