1. Find the financial statements for NIKE and ADIDAS companies and calculate the following ratios for each (note whether a particular ratio is not applicable):
• Current Ratio
• Acid-Test Ratio
• Debt Ratio
• Equity Ratio
• Accounts Receivable Turnover
• Days Sales uncollected
• Inventory Turnover
• Days Sales in Inventory
2. Write in DETAIL describing the difference between the two companies for 3 of the ratios calculated.
3. Prepare common-size and trend percentages for the income statements for each company.
4. Write a DETAILED analysis and comparison of the income statement items and differences between the two. Be sure to explain why the common-size statement is helpful in this analysis.