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 is the amount of inventory reported by adidas at December 31, 2015, and by Puma at December 31, 2015? What percent of total assets is invested in inventory by each company?
b. What inventory costing methods are used by adidas and Puma? How does each company value its inventories?
c. In the notes, what classifications (description) are used by adidas and Puma to categorize their inventories?
d. Compute and compare the inventory turnovers and days to sell inventory for adidas and Puma for 2015. Indicate why there might be a significant difference between the two companies.