FIVE YEAR FINANCIAL SUMMARY (PARTIAL, ADAPTED) Dollar amounts in thousands except for per share data

2018 2017 2016 2015 2014 2013

NET SALES $244,524 217,799 191,329 165,013 137,634

NET SALES INCREASE 12% 14% 16% 20% 17%

DOMESTIC COMPARITIVE...

STORE SALES INCREASE 5% 6% 5% 8% 9%

OTHER INCOME/NET 2,051 1,873 1,787 1,615 1,391

COGS $191,838 171,562 150,255 129,664 108,725

OPERATING/SELLING...

GENERAL ADMIN EXPENSES $41,236 36,356 31,679 27,408 108,725

INTEREST 2018 2017 2016 2015 2014 2013

INTEREST EXPENSE (0,163) (1,357) (1,383) (1,045) (803)

INTEREST INCOME 138 171 188 204 189

INCOME TAX EXPENSE 4,487 3,897 3,692 3,338 2,740

NET INCOME

PER COMMON SHARE OF STOCK 2018 2017 2016 2015 2014 2013

NET INCOME 1.81 1.49 1.41 1.21 0.99

DIVIDENDS 0.30 0.28 0.24 0.20 0.16

FINANCIAL POSITION

CURRENT ASSETS, EXCLUD

MERCHANDISE INVENTORY $30,843 $27,878 26,555 $24,356 $21,132

MERCH INVENT. AT LIFO COST 24,891 22,64 21,443 19,793 17,076 $16,497

PROPERTY, PLANT, & EQUIP NET 51,904 45,750 40,750 40,934 35,969

TOTAL ASSETS 94,685 83,527 78,130 70,349 49,996

CURRENT LIABILITIES 32,617 27,282 28,949 25,803 16,762

LONG-TERM DEBT 22,731 21,143 17,838 18,712 12,122

SHAREHOLDER'S EQUITY 29,337 35,102 31,343 25,834 21,112

FINANCIAL RATIOS

ACID-TEST RATIO 0.9 1.0 0.5 0.9 1.3

RATE OF RETURN/TOTAL ASSETS 10.2% 9.9% 10.3% 12.7% 9.6%

ROR ON SHAREHOLDER'S EQUITY 21.6% 20.1% 22.0% 22.9% 22.4%

Analyze the financial summary for the fiscal years 2014-2018 to decide whether to invest in the common stock of this company. Include the following in the analysis, and fully explain the final decision.

1. Trend analysis for net sales and net income(Use 2014 as the base year) 2. Profitability analysis 3. Evaluation of the ability to sell merchandise inventory (Using LIFO). 4. Evaluation of the ability to pay debts 5. Evaluation of the dividends.

FINANCIAL RATIOS

ACID-TEST RATIO

RATE OF RETURN ON TOTAL ASSTS

ROR ON SHAREHOLDER'S EQUITY