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Analyzing a company for its investment potential Requirements 1. Analyze the company's financial summary for the fiscal years 2014-2018 to decide...

Analyzing a company for its investment potential

Requirements

1. Analyze the company’s financial summary for the fiscal years 2014–2018 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 2014 as the base year).

2. Profitability analysis.

3. Evaluation of the ability to sell merchandise inventory (WRS uses the LIFO

method).

4. Evaluation of the ability to pay debts.

5. Evaluation of dividends.

Top Answer

Net Sales YEAR 2018 2017 2016 2015 2014 SALES 290,000 $215,000 $194,000 $165,000 $139,000... View the full answer

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PS3s_W011.doc

. Trend analysis for net sales taking 2014 as base year= Net sale C.Y-Net sale of base
year/net sale of base year*100
2014=137,634-137,634/137,634*100=100%
2015=165,013-137,634/137,634*100=19.89%...

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