Analyzing a Company for Its Investment Potential In its annual report, WRS Athletic Sup...

Analyzing a Company for Its Investment Potential

In its annual report, WRS Athletic Supply, Inc., includes the following five-year financial summary.

Requirements

Analyze the company’s financial summary for the fiscal years 2011—2015 to decide whether to invest in the common stock of WRS. Include the following sections in your analysis, and fully explain your final decision.

1. Trend analysis for net sales and net income (use 2011 as the base year)

2. Profitability analysis

3. Measuring ability to sell inventory (WRS uses the LIFO method)

4. Measuring ability to pay debts

5. Measuring dividends