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Analyzing a Company for its Investment Potential In its annual report, WRS Athletic Supply, Inc., includes the followin five-year financial summary. 2010 5% 2,001) 2011 5137534 17% 9% 1,391 108,725 WRS ATHLETIC SUPPLY, INC. Five-Year Financial Summary (Partial; adapted) (Dollar amounts in thousands except per share data 2015 2014 Net sales 2013 2012 5244,524 5217799 $191,329 5165,013 Net sales increase 12% 14% 16% 20% Domestic comparative store sales increase 8% Other income-net 1,873 1.787 1,615 Cost of sales 191,838 171,562 150,235 129,664 Operating, selling, and general and administrative expenses 41,236 36,356 31,679 27,408 Interest: Interest expense 1,063 1,357 1,045 Interest income (138) (170 (204) Income tax expense 4,487 3,897 3,692 3,338 8,039 Net income 5,377 Per share of common stock mmon stock 1.81 1.49 1.41 Net income 1.21 0.30 02 020 Dividends 22,516 1,383 (188) 803 (189) 2,740 4,430 6,671 0.99 0.16 $16,497 Financial Position Current assets, excluding inventory Inventories at LIFO cost Property, plant, and equipment, net Total assets Current liabilities Long-term debe Shareholders' equity Financial Ratios Acid-test ratio Rate of return on total assets $ 30,483 $ 27,878 $ 26,555 $ 24,356 24,891 22,614 21,442 19,793 51,904 45,750 40,934 35,969 94,685 83,527 78,130 70,349 32,617 27,282 28,949 25,803 22,731 21.143 17,838 18.712 39,337 35,102 31,343 25.834 $ 21,132 17,076 25,973 49.996 16,762 12,122 21,112 0.9 1.3 0. 91 10.2% 21.6% 1.0 10.9 9.9% 10.3% 20.1% 22.0% 9.6% Date of return on shareholders' equity 10.7% 22.9% 22.4% Requirement

Answer 1

1)

Particulars	2015	2014	2013	2012	2011
Net Revenue	$244,524	$217,799	$191,329	$165,013	$137,634
Trend %	177.66%	158.25%	139%	119.89%	100%
Net Income	$8,039	$6,671	$6,295	$5,377	$4,430
Trend %	181.47%	150.59%	142.10%	121.38%	100%

2) Profitability Analysis :-

Particulars	2015	2014	2013	2012	2011
Net Sales (A)	$244,524	$217,799	$191,329	$165,013	$137,634
Net Income (B)	$8,039	$6,671	$6,295	$5,377	$4,430
Profit Margin Ratio ((B/A)*100)	3.29%	3.06%	3.29%	3.26%	3.22%

3)

Particulars	2015	2014	2013	2012	2011
Net Sales (a)	$244,524	$217,799	$191,329	$165,013	$137,634
Cost Of Goods Sold (b)	$191,838	$171,562	$150,255	$129,664	$108,725
Gross Profit (c)= (a-b)	$52,686	$46,237	$41,074	$35,349	$28909
Gross Profit % ((c/a)*100)	21.55%	21.23%	21.47%	21.42%	21%
Beginning Inventory (d)	$22,614	$21,442	$19,793	$17,076	$16,497
Ending Inventory (e)	$24,891	$22,614	$21,442	$19,793	$17,076
Avg. Inventory (f) = ((d+e)/2)	$23,752.5	$22,028	$20,617.5	$18,434.5	$16,786.5
Inventory Turnover (g)=(b/f)	8.076	7.788	7.287	7.034	6.477
Days Sales in Inventory(h)= ((f/b)*365)	45 days	47 days	50 days	52 days	56 days