Refer to Reebok’s financial statements in Appendix E.Review the financial statements to determine how and where current assets have been reported.

Required

a. Calculate the following accounts receivable ratios:

• Accounts receivable as a percentage of sales

• Average sales per day

• Collection period

• Allowance for uncollectible accounts as a percentage of accounts receivable

b. Based on these results, what conclusions can be drawn regarding Reebok’s accounts receivable?

c. Calculate the following inventory ratios:

• Gross profit percentage

• Cost of goods sold per day

• Number of days sales’ in ending inventory (NDS)

d. Based on these results,what conclusions can be drawn regarding Reebok’s inventories and cost of goods sold?

e. Discuss any other unusual concerns regarding Reebok’s current assets.What other related information might an external analyst require or prefer?