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 were the cash and cash equivalents reported by adidas and Puma at the end of 2012? What does each company classify as cash equivalents?

(b) What were the accounts receivable (net) for adidas and Puma at the end of 2012? Which company reports the greater allowance for doubtful accounts receivable (amount and percentage of gross receivable) at the end of 2012?

(c) Assuming that all “Net sales” (adidas) and all “Sales” (Puma) were net credit sales, compute the accounts receivable turnovers for 2012 for adidas and Puma; also compute the days outstanding for receivables. What is your evaluation of the difference?