Refer to the financial statements of Nike and Adidas presented in PS-36. REQUIRED: a. Compute each company's

Question:

Refer to the financial statements of Nike and Adidas presented in PS-36.


REQUIRED:

a. Compute each company's current ratio and quick ratio for each year. Comment on any changes that you observe.

b. Compute each company's times interest earned ratio and debt-to-equity ratio for each year. Comment on any observed changes.

c. Compare these two companies on the basis of liquidity and solvency. Do you have any concerns about either company's ability to meet its debt obligations?


Data from PS-36:

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Financial Accounting

ISBN: 9781618533111

6th Edition

Authors: Michelle L. Hanlon, Robert P. Magee, Glenn M. Pfeiffer, Thomas R. Dyckman

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