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Financial Summary - 2013 WRN Athletic Supply, Inc. Five-Year Financial Summary (Partial; adapted) (Dollar amounts in thousands except per share data) 2018 2017 2016 2015 2014 Net Sales Revenue $ 245,000 $ 218,000 $ 193,000 $ 167,000 $ 131,000 Net Sales Revenue Increase 12% 13% 16% 27% 17% Domestic Comparative Store Sales Increase 5% 6% 4% 7% 9% Other Income --Net 2,000 1,800 1,800 1,710 1,380 Cost of Goods Sold 183,995 165,680 149,575 130,761 103,490 Selling and Administrative Expenses 41,270 36,390 31,660 27.470 22,580 Interest: Interest Expense (1,040) (1,310) (1,300) (1,060) (860) Interest Income 115 140 170 185 135 Income Tax Expense 4,500 3,800 3.610 3,400 2.780 Net Income 16,310 12,760 8,825 6,204 2,805 Per Share of Common Stock: Net Income 1.80 1.50 Dividends 1.40 1.20 0.98 7 0.45 0.43 Financial Position 0.39 0.35 0.31 Current Assets. Excludina Merchandise Inventory $ 31.100 $ 27.300 $ 26.600 $ 24.700 S as! 21.600 inancial Summary Interest Expense Interest Income (1,040) (1,310) (1,300) (1,060) 185 (860) 135 115 140 170 Income Tax Expense 4,500 3,800 3,610 3,400 2,780 Net Income 16,310 12,760 8,825 6,204 2,805 Per Share of Common Stock: Net Income 1.80 1.50 1.40 1.20 0.98 Dividends 0.45 0.43 0.39 0.35 Financial Position 0.31 $ 31,100 $ 27,300 $ 24,600 22,800 26,600 $ 24,700 $ 22,100 19,500 40,200 36,700 21,600 17,800 $ 16,600 51,600 45,300 25,800 107,300 95,400 88,900 80,900 65,200 32,500 Current Assets, Excluding Merchandise Inventory Merchandise Inventory 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 Stockholders' Equity 27,500 20,800 16,400 22,800 28.900 17,200 42,800 25,500 19,000 36,400 13,100 52,000 47,100 35,700 1.0 1.0 0.9 1.0 1.3 17.1% 11.9% 9.9% 15.3% 28.4% 8.9% 32.9% 22.3% 17.2% 16.7% Question 1 > Score: 0 of 30 points In its annual report, WRN Athletic Supply, Inc. includes the following five-year financial summary: B Click the icon to view the financial summary.) Read the requirements .... Requirement 1. Compute the trend analysis for net sales and net income (use 2014 as the base year), (Round to the nearest whole percent.) 2018 2017 2016 2015 2014 Net sales % % % Net income % % % % % Trends in net sales and net income are both which is Requirement 2. Compute the profitability analysis. Begin by selecting the appropriate measurements that should be used to complete a profitability analysis. Select the formula reference in the last column of the table and enter the earnings per share for each year. (Round to the nearest cent, X.XX.) (Click the icon to view the formulas.) 2018 2017 2016 2015 2014 Formula Earnings per share Submit Qulz In its annual report, WRN Athletic Supply, Inc. includes the following five-year financial summary: Click the icon to view the financial summary) Read the requirements Select the formula reference in the last column of the table and compute the profit margin ratio for all five years. (Enter your answers as percentages rounded to the nearest tenth percent, X.X%.) (Click the icon to view the formulas.) 2018 2017 2016 2015 2014 Formula Profit margin ratio % % % % % Select the formula reference in the last column of the table and enter the rate of return on total assets and the rate of return on common stockholders' equity for each year. (Enter your answers as percentages to the tenin percent. X.X%) Click the icon to view the formulas.) 2018 2017 2016 2014 Formula 2015 % Rate of return on total assets Rate of return on common stockholders' oquity % % % % % % % % % The profit margin ratio, return on assets, and return on equity are time so the stock is over the five years examined. The return an assets and the return on equity for each year are both The earrings per shares V over Requirement 3. Evaluate the ability to sell merchandise Inventory Begin by selecting the appropriate measurements that should be used to measure the ability to sell inventory and the profitablilty of each sales dollar above the cost of goods sold. Select the formula reference in the last column of the table and enter the the gross prolit percentage for each year. (Round your answers to the nearest tenth percent X.X%. Choose from any list or enter any number in the input fields and then continue to the next question Calculator vor 30 points In its annual report, WRN Athletic Supply, Inc. includes the following five-year financial summary: (Click the icon to view the financial summary) Read the requirements BERRI Select the formula reference in the last column of the table and enter the the gross profit percentage for each year. (Round your answers to the nearest tenth percent, XX%) (Click the icon to view the formulas. 2018 2017 2016 2015 2014 Gross profit percentage Formula % % % % % Select the formula reference in the last column of the table and compute the inventory tumover for each year. (Round the intermediary calculation to the nearest whole dollar and round the final answer to Iwo decimal places, X (Click the icon to view the formulas.) 2018 2017 2016 2015 2014 Formula Inventory turnover Select the formula reference in the last column of the table and compute the days' sales in Inventory for each year. (Round intermediary calculations to two decimal places, X.XX, and then round your final answers that you enter in below to one decimal place, XX) (Click the icon to view the formulas.) 2018 2017 2016 2015 2014 Formula Days' sales in Inventory Inventory turnover has over the period examined, which is a sign. The company is selling inventory rapidly Requirement 4. Evaluate the ability to pay debts. Bagin by selecting the appropriate measurements that should be used to measure the ability to pay debts. Requirement 4. Evaluate the ability to pay debts. Begin by selecting the appropriate measurements that should be used to measure the ability to pay debts. Select the formula reference in the last column of the table and enter the acid-test ratio for each year. (Round the ratio to one decimal place, X.X.) (Click the icon to view the formulas.) 2018 2017 2016 2015 2014 Formula Acid-test ratio Select the formula reference in the last column of the table and compute the current ratio for each year. (Round the ratio to two decimal places, X.XX.) = (Click the icon to view the formulas.) 2018 2017 2016 2015 2014 Formula Current ratio Now compute the debt ratio. (Round your answers to the nearest tenth percent. X.X%.) = (Click the icon to view the formulas.) .... Now compute the debt ratio. (Round your answers to the nearest tenth percent, X.X%.) (Click the icon to view the formulas.) 2018 2017 2016 2015 2014 Formula Debt ratio % % % % % Select the formula reference in the last column of the table and compute the debt to equity ratio for each year. (Round the ratio to two decimal places, X.XX.) (Click the icon to view the formulas.) 2018 2017 2016 2015 2014 Formula Debt to equity ratio Select the formula reference in the last column of the table and compute the times-interest-earned ratio for each year. (Round the ratio to two decimal places, X.XX.) (Click the icon to view the formulas.) 2018 2017 2016 2015 2014 Formula Times-interest-earned ratio (An acid-test ratio of 0.90 to 1.00 is acceptable in most industries. A current ratio for companies in most industries is around 1.50. The average debt ratio for most companies ranges from 57% to 67%, with relatively little variation from company to company.) The current and acid-test ratios are fairly This indicates that the company pay its liabilities. The company's debt to total assets (its debt ratio) extraordinarily high, which the company making all payments for debt. The times-interest-earned ratio has from 2014 to 2018 which is Requirement 5. Evaluate the dividends. Begin by selecting the appropriate measurements to evaluate dividends. Enter the dividends per share for each year. (Round to the nearest cent, X.XX.) 2018 2017 2016 2015 2014 Dividends per share Select the formula reference in the last column of the table and calculate the dividend payout for each year. (Round your answers to the nearest whole percent, X%) (Click icon to view the formulas.) 2018 2017 2016 2015 2014 Formula Dividend payout % % % % % The dividend per share is over time so the stock is Requirement 6. Should you invest in the common stock of WRN Athletic Supply, Inc.? Fully explain your final decision. . All other measures have There trouble spots in WRN's data. WRN's trend of net sales, net income, inventory turnover, earnings per share, and times-interest-earned have Therefore, invest in WRN for dividends and growth