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’ fi nancial information to answer the following questions.

(a) What format(s) did these companies use to present their statements of financial position?

(b) How much working capital did each of these companies have at the end of 2012? Speculate as to their rationale for the amount of working capital they maintain.

(c) What are some of the significant differences in the asset structure of the two companies? What causes these differences?

(d) What were these two companies’ trends in net cash provided by operating activities over the period 2011 to 2012?

(e) Compute both companies’: (1) current cash debt coverage, (2) cash debt coverage, and (3) free cash flow. What do these ratios indicate about the financial condition of the two companies?