Learning Objectives 2, 4 P-F:17-29A Completing a comprehensive financial statement analysis In its annual report, ABC Athletic Supply, Inc. includes the following five-year 3. 2024: Inventory turnover 8.04 financial summary: Selling and Administrative Expenses Interest: Interest Expense Interest Income Income Tax Expense Net Income Per Share of Common Stock: Net Income Dividends 41,210 (1,080) 125 4,470 16,225 1.60 0.40 36,330 (1,380) 165 3,900 11,803 1.30 0.38 31,620 (1,400) 155 3,700 7,979 1.20 0.34 27,440 (1,020) 235 3,320 4,760 1.00 0.30 22,540 (830) 190 2,700 3,054 0.78 0.26 Financial Position \begin{tabular}{lrrrrrr} \hline Current Assets, Excluding Merchandise Inventory & $30,700 & $27,200 & $26,700 & $24,400 & $21,500 \\ Merchandise Inventory & 24,500 & 22,600 & 21,700 & 19,000 & 17,500 & $16,700 \\ Property, Plant, and Equipment, Net & 51,400 & 45,200 & 40,000 & 35,100 & 25,600 \\ Total Assets & 106,600 & 95,000 & 88,400 & 78,500 & 64,600 \\ Current Liabilities & 32,300 & 28,000 & 28,300 & 25,000 & 16,500 \\ Long-term Debt & 23,000 & 21,500 & 17,600 & 19,100 & 12,000 \\ Stockholders' Equity & 51,300 & 45,500 & 42,500 & 34,400 & 36,100 \\ Financial Ratios & & & & & & 1.3 \\ \hline Acid-Test Ratio & 1.0 & 1.0 & 0.9 & 1.0 & 1.3 \\ Rate of Return on Total Assets & 17.2% & 14.4% & 11.2% & 8.1% & 7.1% \\ Rate of Return on Common Stockholders' Equity & 33.5% & 26.8% & 20.8% & 13.5% & 13.0% \\ \hline \end{tabular} Requirements Analyze the company's financial summary for the fiscal years 2020-2024 to decide whether to invest in the common stock of ABC. Include the following sections in your analysis. 1. Trend analysis for net sales revenue and net income (use 2020 as the base year). 2. Profitability analysis. 3. Evaluation of the ability to sell merchandise inventory. 4. Evaluation of the ability to pay debts. 5. Evaluation of dividends. 6. Should you invest in the common stock of ABC Athletic Supply, Inc.? Fully explain your final decision.