Conduct a comprehensive financial analysis of Reebok International’s financial statements (see Appendix E).

Required:

a. Review Reebok International’s financial statements (see Appendix E) to determine whether any unusual or noteworthy events may limit the scope or comparability of financial statement analysis. Review Ernst & Young’s audit report. Determine whether any restatements might be necessary and whether any barriers would restrict the comparability of Reebok’s performance. In other words, conduct the first four steps in the financial statement analysis framework.

b. Prepare horizontal and vertical analyses of Reebok’s income statement for 1997 and 1996 (step 5 of our financial statement analysis framework).

c. Conduct an analysis of Reebok’s liquidity for 1997 and 1996 (step 6 of our financial statement analysis framework).

d. Conduct an analysis of Reebok’s profitability for 1997 and 1996 (step 7 of our financial statement analysis framework).

e. Analyze Reebok’s capital structure for 1997 and 1996 (step 8 of our financial statement analysis framework).

f. Calculate Reebok’s investor ratios for 1997 and 1996 (step 9 of our financial statement analysis framework).