Comparative Analysis Case adidas and Puma The financial statements of adidas (DEU) and Puma (DEU) are presented in Appendices B and C, respectively.

The complete annual reports, including the notes to the financial statements, are available online.

Instructions Use the companies’ financial information to answer the following questions.

(a) What amount is reported in the statements of financial position as property, plant, and equipment

(net) of adidas at year-end 2012 and of Puma at year-end 2012? What percentage of total assets is invested in property, plant, and equipment by each company?

(b) What depreciation methods are used by adidas and Puma for property, plant, and equipment?

How much depreciation was reported by adidas and Puma in 2012 and 2011?

(c) Compute and compare the following ratios for adidas and Puma for 2012.

(1) Asset turnover.

(2) Profit margin on sales.

(3) Return on assets.

(d) What amount was spent in 2012 for capital expenditures by adidas and Puma? What amount of interest was capitalized in 2012?