Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver

تمرين 27

Analyzing a Company for Its Investment Potential
In its annual report, WRS Athletic Supply, Inc., includes the following five-year financial summary.

Requirement
1. 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.
a. Trend analysis for net sales and net income (use 2011 as the base year).
b. Profitability analysis.
c. Evaluate the ability to sell inventory (WRS uses the LIFO method).
d. Evaluate the ability to pay debts.
e. Evaluate the dividends.