IntroductionACC305Cost AccountingFall 2019AWR Step 1: Financial Statement Analysis Project This is not a group project. You are not allowed to share your project with other students or publicize your work in any public websites which other students can access with or without paying fees). Students involved in sharing projects will be prosecuted according to the Student Academic Honesty Policy and receive failure grades. PurposeThis project is aimed at familiarizing students with the basic skills and information needed for financial statement analysis. Also, students will learn how to use online databases for financial statement analysis. Step 1Use the following link to access the website of MergentOnline available in the library’s databases.http://webdb.plattsburgh.edu:2048/login?url=http://www.mergentonline.com/compsearch.aspSelect a firm you want to investigate (Firm A). Also, select a major competitor of this firm (Firm B). You may find the competitor’s information using the competitors tab.List the two firms you selected:Firm A:__________________________NIKEFirm B:__________________________ADIDASRead the Business Summary of Firm A. Copy and paste Business Summary here!NIKE is engaged in the design, development and marketing and selling of athletic footwear, apparel, equipment, accessories and services. Co. focuses its NIKE Brand product offerings in Running, NIKE Basketball, the Jordan Brand, Football (Soccer), Training and Sportswear categories. Co. markets products designed for kids, as well as for other athletic and recreational uses such as American football, baseball, cricket, golf, lacrosse, tennis, walking, and other outdoor activities. Co. has license agreements that permit unaffiliated parties to manufacture and sell, using Co.-owned trademarks, certain apparel, digital devices and applications and other equipment designed for sports activities. In the Ownership tab, find the percentages of shares owned by the institutional investors for Firm A and Firm B. Company ACompany B% of shares owned by the institutional investors62.50%% of shares owned by the institutional investorsN/AWhy is it important for investors to pay attention to institutional holdings?Institutional holdings reefer to the ownerhsip stake in a firm that is held by large financial organizations, endowments or pension funds.Institutional holdings create or destroy shareholders value depending to the extent of control or influence.In the Ownership tab, find the percentages of shares owned by the insiders for Firm A and Firm B. Company ACompany B% of shares owned by the insiders1.45% of shares owned by the insidersN/AWhy is it important for investors to pay attention to insiders' holdings?Need to address this question. http://webdb.plattsburgh.edu:2048/login?url=http://www.mergentonline.com/compsearch.asp Step 2In the Company Financials tab, download the most recent three years’ income statements of both firms in Excel format. Paste your downloaded income ...

1. IntroductionACC305Cost AccountingFall 2019AWR Step 1:
Financial Statement Analysis Project This is not a group
project. You are not allowed to share your project with other
students or publicize your work in any public websites which
other students can access with or without paying fees).
Students involved in sharing projects will be prosecuted
according to the Student Academic Honesty Policy and receive
failure grades. PurposeThis project is aimed at familiarizing
students with the basic skills and information needed for
financial statement analysis. Also, students will learn how to
use online databases for financial statement analysis.
Step 1Use the following link to access the website of
MergentOnline available in the library’s
databases.http://webdb.plattsburgh.edu:2048/login?url=http://w
ww.mergentonline.com/compsearch.aspSelect a firm you want
to investigate (Firm A). Also, select a major competitor of this
firm (Firm B). You may find the competitor’s information
using the competitors tab.List the two firms you selected:Firm
A:__________________________NIKEFirm
B:__________________________ADIDASRead the Business
Summary of Firm A. Copy and paste Business Summary
here!NIKE is engaged in the design, development and marketing
and selling of athletic footwear, apparel, equipment, accessories
and services. Co. focuses its NIKE Brand product offerings in
Running, NIKE Basketball, the Jordan Brand, Football (Soccer),
Training and Sportswear categories. Co. markets products
designed for kids, as well as for other athletic and recreational
uses such as American football, baseball, cricket, golf, lacrosse,
tennis, walking, and other outdoor activities. Co. has license
agreements that permit unaffiliated parties to manufacture and
sell, using Co.-owned trademarks, certain apparel, digital
devices and applications and other equipment designed for
sports activities.
In the Ownership tab, find the percentages of shares owned by

2. the institutional investors for Firm A and Firm B. Company
ACompany B% of shares owned by the institutional
investors62.50%% of shares owned by the institutional
investorsN/AWhy is it important for investors to pay attention
to institutional holdings?Institutional holdings reefer to the
ownerhsip stake in a firm that is held by large financial
organizations, endowments or pension funds.Institutional
holdings create or destroy shareholders value depending to the
extent of control or influence.In the Ownership tab, find the
percentages of shares owned by the insiders for Firm A and
Firm B. Company ACompany B% of shares owned by the
insiders1.45% of shares owned by the insidersN/AWhy is it
important for investors to pay attention to insiders'
holdings?Need to address this question.
http://webdb.plattsburgh.edu:2048/login?url=http://www.merge
ntonline.com/compsearch.asp
Step 2In the Company Financials tab, download the most recent
three years’ income statements of both firms in Excel format.
Paste your downloaded income statements from Mergentonline
here.2ADIDAS INCOME STATEMENT1NIKE INCOME
STATEMENTPowered by ClearbitPowered by ClearbitAdidas
AG (NBB: ADDY Y)NIKE Inc (NYS: NKE)Due to changes with
International Financial Reporting Standards (IFRS), recent
financials statement presentations have been adjusted to meet
this standard. Please note the original historical presentations
have remained in the original format Exchange rate used is that
of the Year End reported date Exchange rate used is that of the
Year End reported date As Reported Annual Income Statement
Report Date5/31/195/31/185/31/17As Reported Annual Income
Statement CurrencyUSDUSDUSDReport
Date12/31/1812/31/1712/31/16Audit StatusNot QualifiedNot
QualifiedNot
QualifiedCurrencyEUREUREURConsolidatedYesYesYesAudit
StatusNot QualifiedNot QualifiedNot
QualifiedScaleThousandsThousandsThousandsConsolidatedYes
YesYesRevenues391170003639700034350000ScaleMillionsMill

3. ionsMillionsCost of sales216430002044100019038000Net
sales219152121819291Gross
profit174740001595600015312000Cost of sales-10552-10514-
9912Demand creation expense375300035770003341000Gross
profit11363107039379Operating overhead
expense894900079340007222000Royalty & commission
income129115109Total selling & administrative
expense127020001151100010563000Income from release of
accrued liabilities & other provisions6-55Interest income
(expense), net-49000-54000-59000Income from accounts
receivable previously written off--3Other expense (income),
net-7800066000-196000Gains from disposal of fixed assets10-
4Income (loss) before income taxes - United
States5930007440001240000Reversals of impairment losses for
intangible & tangible assets--2Income (loss) before income
taxes - foreign420800035810003646000Income from the early
termination of promotion & advertising contracts--69Income
(loss) before income taxes480100043250004886000Income from
the divestiture of the Mitchell & Ness business--39Current
provision (benefit) for income taxes -
federal740001167000398000Sundry income32-94Current
provision (benefit) for income taxes -
state560004500082000Other operating income48133266Current
provision (benefit) for income taxes -
foreign608000533000439000Expenditure for marketing
investments---1981Total current provision (benefit) for income
taxes7380001745000919000Expenditure for point-of-sale
investments---540Deferred provision (benefit) for income taxes
- federal-33000595000-279000Marketing overhead---
684Deferred provision (benefit) for income taxes - state-
900025000-9000Sales force---2237Deferred provision (benefit)
for income tax - foreign760002700015000Logistics---967Total
deferred provision (benefit) for income taxes34000647000-
273000Research & development---164Income tax expense
(benefit)7720002392000646000Central administration---
1690Net income (loss)402900019330004240000Other operating

4. expenses-9172-8882-8263Weighted average shares outstanding
- basic157970016238001657800Marketing & point-of-sale
expenses-3001--Weighted average shares outstanding -
diluted161840016591001692000Distribution & selling
expenses-4450--Year end shares
outstanding156800016010001643000General & administration
expenses-1576--Net income (loss) per common share -
basic2.551.192.56Sundry expenses-105--Net income (loss) per
common share - diluted2.491.172.51Impairment losses (net) on
accounts receivable & contract assets-41--Dividends declared
per common share0.860.780.7Operating
profit236820701491Total number of
employees767007310074400Interest income from financial
instruments measured at amortized cost24-21Class A common
stockholders131515Interest income from financial instruments
at fair value through profit or loss0-0Class B common
stockholders233052227122698Interest income from non-
financial assets0--Foreign currency translation adjustments-
173000-600016000Net foreign exchange gains26-5Other
financial income7-1Financial income574628Interest expense on
financial instruments measured at amortized costs-42--
70Interest expense on financial instruments at fair value
through profit or loss0-0Interest expense on provisions & non-
financial liabilities0-0Other financial expenses-5--4Financial
expenses-47-93-74Income before taxes237820231444Income
taxes-669-668-426Net income from continuing
operations170913541019Income (losses) from discontinued
operations, net of tax-5-2541Net income170411001020Net
income attributable to shareholders170210971017Net income
attributable to non-controlling interests332Weighted average
number of shares outstanding -
basic201.759202.392200.188Weighted average number of
shares outstanding - diluted202.045204.241200.188Year end
shares outstanding199.171203.861201.489Earnings (loss) per
share from continuing operations - basic8.466.685.08Basic
earnings per share - discontinued operations--0.01Net earnings

5. (loss) per share - basic8.445.425.08Earnings (loss) per share
from continuing operations - diluted8.456.634.99Diluted
earnings per share - discontinued operations--0.01Net earnings
(loss) per share - diluted8.425.384.99Total number of
employees570165688857876
Step 3For both Firms, use the skills of vertical analysis to
convert the income statement items into the percentages of net
sales for each of the three years’ income statements,
respectively. Show your work belowADIDAS INCOME
STATEMENTPowered by ClearbitAdidas AG (NBB: ADDY
Y)Due to changes with International Financial Reporting
Standards (IFRS), recent financials statement presentations have
been adjusted to meet this standard. Please note the original
historical presentations have remained in the original format
Exchange rate used is that of the Year End reported date As
Reported Annual Income Statement As Reported Annual Income
Statement (percentage of sales)(percentage of sales)(percentage
of sales)Report Date5/31/19(percentage of
sales)5/31/18(percentage of sales)5/31/17(percentage of
sales)Report
Date12/31/1812/31/1712/31/16CurrencyUSDUSDUSDCurrency
EUREUREURAudit StatusNot QualifiedNot QualifiedNot
QualifiedAudit StatusNot QualifiedNot QualifiedNot
QualifiedConsolidatedYesYesYesConsolidatedYesYesYesScale
ThousandsThousandsThousandsScaleMillionsMillionsMillionsR
evenues39117000100.00%36397000100.00%34350000100.00%
Net sales21915100.00%21218100.00%19291100.00%Cost of
sales2164300055.33%2044100056.16%1903800055.42%Cost of
sales-10552-48.15%-10514-49.55%-9912-51.38%Gross
profit1747400044.67%1595600043.84%1531200044.58%Gross
profit1136351.85%1070350.44%937948.62%Demand creation
expense37530009.59%35770009.83%33410009.73%Royalty &
commission income1290.59%1150.54%1090.57%Operating
overhead
expense894900022.88%793400021.80%722200021.02%Income
from release of accrued liabilities & other provisions60.03%-

6. 0.00%550.29%Total selling & administrative
expense1270200032.47%1151100031.63%1056300030.75%Inco
me from accounts receivable previously written off-0.00%-
0.00%30.02%Interest income (expense), net-49000-0.13%-
54000-0.15%-59000-0.17%Gains from disposal of fixed
assets100.05%-0.00%40.02%Other expense (income), net-
78000-0.20%660000.18%-196000-0.57%Reversals of
impairment losses for intangible & tangible assets-0.00%-
0.00%20.01%Income (loss) before income taxes - United
States5930001.52%7440002.04%12400003.61%Income from the
early termination of promotion & advertising contracts-0.00%-
0.00%690.36%Income (loss) before income taxes -
foreign420800010.76%35810009.84%364600010.61%Income
from the divestiture of the Mitchell & Ness business-0.00%-
0.00%390.20%Income (loss) before income
taxes480100012.27%432500011.88%488600014.22%Sundry
income320.15%-0.00%940.49%Current provision (benefit) for
income taxes -
federal740000.19%11670003.21%3980001.16%Other operating
income480.22%1330.63%2661.38%Current provision (benefit)
for income taxes -
state560000.14%450000.12%820000.24%Expenditure for
marketing investments-0.00%-0.00%-1981-10.27%Current
provision (benefit) for income taxes -
foreign6080001.55%5330001.46%4390001.28%Expenditure for
point-of-sale investments-0.00%-0.00%-540-2.80%Total current
provision (benefit) for income
taxes7380001.89%17450004.79%9190002.68%Marketing
overhead-0.00%-0.00%-684-3.55%Deferred provision (benefit)
for income taxes - federal-33000-0.08%5950001.63%-279000-
0.81%Sales force-0.00%-0.00%-2237-11.60%Deferred provision
(benefit) for income taxes - state-9000-0.02%250000.07%-
9000-0.03%Logistics-0.00%-0.00%-967-5.01%Deferred
provision (benefit) for income tax -
foreign760000.19%270000.07%150000.04%Research &
development-0.00%-0.00%-164-0.85%Total deferred provision

7. (benefit) for income taxes340000.09%6470001.78%-273000-
0.79%Central administration-0.00%-0.00%-1690-8.76%Income
tax expense
(benefit)7720001.97%23920006.57%6460001.88%Other
operating expenses-9172-41.85%-8882-41.86%-8263-
42.83%Net income
(loss)402900010.30%19330005.31%424000012.34%Marketing
& point-of-sale expenses-3001-13.69%-0.00%-0.00%Weighted
average shares outstanding -
basic15797004.04%16238004.46%16578004.83%Distribution &
selling expenses-4450-20.31%-0.00%-0.00%Weighted average
shares outstanding -
diluted16184004.14%16591004.56%16920004.93%General &
administration expenses-1576-7.19%-0.00%-0.00%Year end
shares
outstanding15680004.01%16010004.40%16430004.78%Sundry
expenses-105-0.48%-0.00%-0.00%Net income (loss) per
common share -
basic2.550.00%1.190.00%2.560.00%Impairment losses (net) on
accounts receivable & contract assets-41-0.19%-0.00%-
0.00%Net income (loss) per common share -
diluted2.490.00%1.170.00%2.510.00%Operating
profit236810.81%20709.76%14917.73%Dividends declared per
common share0.860.00%0.780.00%0.70.00%Interest income
from financial instruments measured at amortized cost240.11%-
0.00%210.11%Total number of
employees767000.20%731000.20%744000.22%Interest income
from financial instruments at fair value through profit or
loss00.00%-0.00%00.00%Class A common
stockholders130.00%150.00%150.00%Interest income from
non-financial assets00.00%-0.00%-0.00%Class B common
stockholders233050.06%222710.06%226980.07%Net foreign
exchange gains260.12%-0.00%50.03%Foreign currency
translation adjustments-173000-0.44%-6000-
0.02%160000.05%Other financial income70.03%-
0.00%10.01%Financial income570.26%460.22%280.15%Interest

8. expense on financial instruments measured at amortized costs-
42-0.19%-0.00%-70-0.36%Interest expense on financial
instruments at fair value through profit or loss00.00%-
0.00%00.00%Interest expense on provisions & non-financial
liabilities00.00%-0.00%00.00%Other financial expenses-5-
0.02%-0.00%-4-0.02%Financial expenses-47-0.21%-93-0.44%-
74-0.38%Income before
taxes237810.85%20239.53%14447.49%Income taxes-669-
3.05%-668-3.15%-426-2.21%Net income from continuing
operations17097.80%13546.38%10195.28%Income (losses)
from discontinued operations, net of tax-5-0.02%-254-
1.20%10.01%Net income17047.78%11005.18%10205.29%Net
income attributable to
shareholders17027.77%10975.17%10175.27%Net income
attributable to non-controlling
interests30.01%30.01%20.01%Weighted average number of
shares outstanding -
basic201.7590.92%202.3920.95%200.1881.04%Weighted
average number of shares outstanding -
diluted202.0450.92%204.2410.96%200.1881.04%Year end
shares
outstanding199.1710.91%203.8610.96%201.4891.04%Earnings
(loss) per share from continuing operations -
basic8.460.04%6.680.03%5.080.03%Basic earnings per share -
discontinued operations-0.00%-0.00%0.010.00%Net earnings
(loss) per share - basic8.440.04%5.420.03%5.080.03%Earnings
(loss) per share from continuing operations -
diluted8.450.04%6.630.03%4.990.03%Diluted earnings per
share - discontinued operations-0.00%-0.00%0.010.00%Net
earnings (loss) per share -
diluted8.420.04%5.380.03%4.990.03%Total number of
employees57016260.17%56888268.11%57876300.02%
Step 4According to your vertical analysis in step 3, type in the
calculated percentage into the following table for both
firms.Firm AFirm B201720162015201720162015Net
Sales100%100%100%100%100%100%Cost of Goods

9. Sold55.33%56.16%55.42%48.15%49.55%51.38%Gross
Margin44.67%43.84%44.58%51.85%50.44%48.62%Selling &
Administrative
expenses32.47%31.63%30.75%27.40%0.00%0.00%Net
Income10.30%5.31%12.34%10.30%5.31%12.34%(You can
modify this table to accommodate your income statement
format)Report your observations in less than 100 wordsAnnual
Cost of sales seem to be highest in 2016 for Firm A registering
55.42% and firm B and 2015registering 51.38%.Cost of sales
for Firm B is gradual;ly decreasing from 2016-
2019(51.38%,49.55%, and 48.15%) respectively.For Firm A,
Gross margin is ranging from 44.58 in 2016 to 43.84% in 2017
and 44.67% in 2019.For Firm B,Gross margin ranges from
51.38% in 2015,50.44% in 2016 and 51.855 in 2017.The net
income for both firms is highest in 2015 and lowest in 2016
then rises again in 2017.You need to correct your grammatical
errors and make the writing here more clear. Your idea is okay
but the sentences do not flow well.
Step 5For both firms, use the skills of horizontal analysis to
compute the percentage changes across years for each income
statement item Show your work belowNIKE HORIZONTAL
ANALYSISAs Reported Annual Income Statement ADIDA
HORIZONTAL ANALYSISReport
Date5/31/195/31/185/31/17As Reported Annual Income
Statement CurrencyUSDUSDUSDReport
Date12/31/1812/31/1712/31/16Audit StatusNot
QualifiedPercentage change(Horizontal)Not
QualifiedPercentage change(Horizontal)Not
QualifiedCurrencyEUREUREURConsolidatedYes2018 VS
2017Yes2017 VS 2017YesAudit StatusNot QualifiedPercentage
change(Horizontal)Not QualifiedPercentage
change(Horizontal)Not
QualifiedScaleThousandsThousandsThousandsConsolidatedYes2
018 VS 2017Yes2017 VS
2017YesRevenues391170007.47%363970006.0%34350000Scale
MillionsMillionsMillionsCost of

10. sales216430005.88%204410007.4%19038000Net
sales219153.28%212189.99%19291Gross
profit174740009.51%159560004.2%15312000Cost of sales-
105520.36%-105146.07%-9912Demand creation
expense37530004.92%35770007.1%3341000Gross
profit113636.17%1070314.12%9379Operating overhead
expense894900012.79%79340009.9%7222000Royalty &
commission income12912.17%1155.50%109Total selling &
administrative
expense1270200010.35%115110009.0%10563000Income from
release of accrued liabilities & other provisions60.00%-
0.00%55Interest income (expense), net-49000-9.26%-54000-
8.5%-59000Income from accounts receivable previously written
off-0.00%-0.00%3Other expense (income), net-78000-
218.18%66000-133.7%-196000Gains from disposal of fixed
assets100.00%-0.00%4Income (loss) before income taxes -
United States593000-20.30%744000-40.0%1240000Reversals of
impairment losses for intangible & tangible assets-0.00%-
0.00%2Income (loss) before income taxes -
foreign420800017.51%3581000-1.8%3646000Income from the
early termination of promotion & advertising contracts-0.00%-
0.00%69Income (loss) before income
taxes480100011.01%4325000-11.5%4886000Income from the
divestiture of the Mitchell & Ness business-0.00%-
0.00%39Current provision (benefit) for income taxes -
federal74000-93.66%1167000193.2%398000Sundry
income320.00%-0.00%94Current provision (benefit) for income
taxes - state5600024.44%45000-45.1%82000Other operating
income48-63.91%133-50.00%266Current provision (benefit) for
income taxes -
foreign60800014.07%53300021.4%439000Expenditure for
marketing investments-0.00%-0.00%-1981Total current
provision (benefit) for income taxes738000-
57.71%174500089.9%919000Expenditure for point-of-sale
investments-0.00%-0.00%-540Deferred provision (benefit) for
income taxes - federal-33000-105.55%595000-313.3%-

11. 279000Marketing overhead-0.00%-0.00%-684Deferred
provision (benefit) for income taxes - state-9000-
136.00%25000-377.8%-9000Sales force-0.00%-0.00%-
2237Deferred provision (benefit) for income tax -
foreign76000181.48%2700080.0%15000Logistics-0.00%-
0.00%-967Total deferred provision (benefit) for income
taxes34000-94.74%647000-337.0%-273000Research &
development-0.00%-0.00%-164Income tax expense
(benefit)772000-67.73%2392000270.3%646000Central
administration-0.00%-0.00%-1690Net income
(loss)4029000108.43%1933000-54.4%4240000Other operating
expenses-91723.27%-88827.49%-8263Weighted average shares
outstanding - basic1579700-2.72%1623800-
2.1%1657800Marketing & point-of-sale expenses-30010.00%-
0.00%-Weighted average shares outstanding - diluted1618400-
2.45%1659100-1.9%1692000Distribution & selling expenses-
44500.00%-0.00%-Year end shares outstanding1568000-
2.06%1601000-2.6%1643000General & administration
expenses-15760.00%-0.00%-Net income (loss) per common
share - basic2.55114.29%1.19-53.5%2.56Sundry expenses-
1050.00%-0.00%-Net income (loss) per common share -
diluted2.49112.82%1.17-53.4%2.51Impairment losses (net) on
accounts receivable & contract assets-410.00%-0.00%-
Dividends declared per common
share0.8610.26%0.7811.4%0.7Operating
profit236814.40%207038.83%1491Total number of
employees767004.92%73100-1.7%74400Interest income from
financial instruments measured at amortized cost240.00%-
0.00%21Class A common stockholders13-
13.33%150.0%15Interest income from financial instruments at
fair value through profit or loss00.00%-0.00%0Class B common
stockholders233054.64%22271-1.9%22698Interest income from
non-financial assets00.00%-0.00%-Foreign currency translation
adjustments-1730002783.33%-6000-137.5%16000Net foreign
exchange gains260.00%-0.00%5Other financial income70.00%-
0.00%1Financial income5723.91%4664.29%28Interest expense

12. on financial instruments measured at amortized costs-420.00%-
0.00%-70Interest expense on financial instruments at fair value
through profit or loss00.00%-0.00%0Interest expense on
provisions & non-financial liabilities00.00%-0.00%0Other
financial expenses-50.00%-0.00%-4Financial expenses-47-
49.46%-9325.68%-74Income before
taxes237817.55%202340.10%1444Income taxes-6690.15%-
66856.81%-426Net income from continuing
operations170926.22%135432.88%1019Income (losses) from
discontinued operations, net of tax-5-98.03%-254-
25500.00%1Net income170454.91%11007.84%1020Net income
attributable to shareholders170255.15%10977.87%1017Net
income attributable to non-controlling
interests30.00%350.00%2Weighted average number of shares
outstanding - basic201.759-
0.31%202.3921.10%200.188Weighted average number of shares
outstanding - diluted202.045-1.08%204.2412.02%200.188Year
end shares outstanding199.171-
2.30%203.8611.18%201.489Earnings (loss) per share from
continuing operations - basic8.4626.65%6.6831.50%5.08Basic
earnings per share - discontinued operations-0.00%-
0.00%0.01Net earnings (loss) per share -
basic8.4455.72%5.426.69%5.08Earnings (loss) per share from
continuing operations -
diluted8.4527.45%6.6332.87%4.99Diluted earnings per share -
discontinued operations-0.00%-0.00%0.01Net earnings (loss)
per share - diluted8.4256.51%5.387.82%4.99Total number of
employees570160.23%56888-1.71%57876
Step 6According to your horizontal analysis in step 5, type in
the calculated percentage into the following table for both
firms.Firm AFirm AFirm BFirm B% change from 2017 to
2018% change from 2016 to 2017% change from 2017 to 2018%
change from 2016 to 2017Net
Sales7.47%6.00%3.28%9.99%Cost of Goods
Sold5.88%7.40%0.36%6.07%Gross
Margin9.51%4.20%6.17%14.12%Selling & Administrative

13. expenses10.35%9.00%0.00%0.00%Net Income11.01%-
11.50%0.00%0.00%EPS
diluted112.82%53.40%0.00%0.00%Please address this question.
(You can modify this table to accommodate your income
statement format)(You can select any income statement items
that matter for your analysis)Report your observations in less
than 100 words
Step 7Under the Company Financials Tab, click on ratios tab to
download 5 years’ financial ratios in Excel format for both
firms. Copy and Paste your 5 years’ financial ratios in Excel
format for both firms.Firm APowered by ClearbitNIKE Inc
(NYS: NKE)Exchange rate used is that of the Year End reported
date Profitability
Ratios5/31/195/31/185/31/175/31/165/31/15ROA %
(Net)17.428.4418.9917.4416.29ROE %
(Net)42.7417.434.3830.0427.82ROI %
(Operating)37.1129.3632.432.7432.36EBITDA Margin
%14.214.0816.4516.3415.81Calculated Tax Rate
%16.0855.3113.2218.6722.16Revenue per
Employee510000497907461694456684488834Liquidity
Ratios5/31/195/31/185/31/175/31/165/31/15Quick
Ratio1.141.451.81.621.47Current Ratio2.12.512.932.82.52Net
Current Assets % TA36.5140.3545.5245.1844.64Debt
Management5/31/195/31/185/31/175/31/165/31/15LT Debt to
Equity0.380.350.280.160.08Total Debt to
Equity0.380.390.310.170.1Interest
Coverage98.9881.0983.81244.32151.18Asset
Management5/31/195/31/185/31/175/31/165/31/15Total Asset
Turnover1.691.591.541.51.52Receivables
Turnover10.0710.159.939.799.01Inventory
Turnover3.983.963.853.793.99Accounts Payable
Turnover1616.8216.2114.9415.07Accrued Expenses
Turnover9.4511.5911.369.249.5Property Plant & Equip
Turnover8.518.629.159.8910.47Cash & Equivalents
Turnover8.989.039.899.2410.08Per
Share5/31/195/31/185/31/175/31/165/31/15Cash Flow per

14. Share3.743.052.21.822.72Book Value per
Share5.776.137.557.297.41Firm BPowered by ClearbitAdidas
AG (NBB: ADDY Y)Exchange rate used is that of the Year End
reported date Profitability
Ratios12/31/1812/31/1712/31/1612/31/1512/31/14ROA %
(Net)11.37.397.114.924.08ROE %
(Net)26.5416.9816.7111.238.82ROI %
(Operating)30.7926.4418.5314.1312.33EBITDA Margin
%13.129.539.428.187.95Calculated Tax Rate
%27.5933.0229.4833.9732.46Revenue per
Employee384366372978332405304473270496Liquidity
Ratios12/31/1812/31/1712/31/1612/31/1512/31/14Quick
Ratio0.820.690.70.760.92Current Ratio1.441.371.311.41.68Net
Current Assets % TA19.0816.2113.9815.9923.91Debt
Management12/31/1812/31/1712/31/1612/31/1512/31/14LT
Debt to Equity0.250.150.150.260.28Total Debt to
Equity0.260.170.250.320.33Interest
Coverage133.61270.4429.5523.5319.62Asset
Management12/31/1812/31/1712/31/1612/31/1512/31/14Total
Asset Turnover1.451.431.351.311.21Receivables
Turnover9.268.878.037.937.74Inventory
Turnover2.962.822.883.12.95Accounts Payable
Turnover10.259.498.519.28.36Accrued Expenses
Turnover9.779.599.3510.8412.13Property Plant & Equip
Turnover10.3410.8410.8310.9410.8Cash & Equivalents
Turnover10.3713.6513.3811.18.89Per
Share12/31/1812/31/1712/31/1612/31/1512/31/14Cash Flow per
Share13.118.146.725.413.36Book Value per
Share32.0231.6432.1228.327.52
Step 8Based on the ratios in step 7, comment on comparison
of:Liquidity of these two firms (less than 100 words)Liquidity
ratio (Current ratio)of frim A is positive and above one.This
shows currents assets are more thatn current liabilities and
therefore the firm is able to meet its short trm operating
obligations.Liquid Ratio(Current ratio) of fiem B is below
1.This shows that the firm current assets are not equal to its

15. short term liabilities and hence the firm is struggling to meet its
operating costs.there is a deficit in current assets.What is your
observation based on their historical patterns? Do you have
only one liquidity ratio??What is your conclusion by comparing
these two firms? Profitability of these two firms (less than 100
words)for Firm A(Nike), ROA is highest in yeat 2017 and ROE
highest in year 2019.This shows assets and Equity are being
utilised well to maximise on returns.For firm B,ROA and ROE
is highest in 2019 and lowest in 2015 respectively.However,
Both ROE abd ROE have consistently increase all through from
2015 to 2019 showung that the firm is increasing utilizing
assets and equity to maximise on returns.Why? You need to
improve your wiritng in this area. It does not flow well and
your wiritng is not clear for what you want to expressThere are
many typos and grammatical errors. What is your conclusion by
comparing these two firms? For Firm B, Solvency of these two
firms (less than 100 words)Solvency of these two firms A and
B(Indicate the financial health with regard to debt).Total to
equity for firm A, Highest in 2014(0.3) and lowest in
2017(0.17).This is a safe state.However, Interest charges appear
minimal at 2014(19.62) compared to 2017(210.44).The
unproportioanl interest can be due to inflation and rise in the
nterest rates.For Firm B, total Debt To equity is higest in 2017
and lowest in 2014.However, interest coverage is highest in
2015(151.18) and lowest at 2017(81.09).However, debt has not
suppirsed equity for both firms hence their solvency is sound
and above requirementIncomplete sentenceWhat is your
conclusion by comparing these two firms?
Step 9 Under Equity Pricing tab, produce a price change chart
including price changes of Firm A and Firm B in the past 3
yearsTake a screenshot of your chart and paste herePrice
changes for NikePrice Changes for AdidasNeed to address this
question. In Step 6 you compared the key income statement
items of Firm A and Firm B across three years using horizontal
analysis. Is the market performance of these two firms based
on the price change chart consistent with the result of your

16. horizontal analysis based on income statement items? (Less than
50 words)
Step 10 Under reports tab, download the most recent 10-K
report of firm A. Use the 10-K report to answer the following
questions for Firm A.Who is the auditor of the 10-K report?
Auditing Firm: (e.g., KPMG)Pricewatershouse Coopers
LLDRead the Auditors’ Report and indicate the major
conclusion in their opinions (less than 50 words)Major
Conclusions: Audit was perfomed to obtain reasonable
assurance about whether the consolidated financial statements
are free of material misstatement, whether due toerror or fraud,
and whether effective internal control over financial reporting
was maintained in all material respects.
Procedures peforemd included examining, on a test basis,
evidence regarding the amounts and disclosures in the
consolidated financial statements. Audits
also included evaluating the accounting principles used and
significant estimates made by management, as well as
evaluating the overall presentation of the consolidated financial
statements.The Company's sales-related reserve balance, which
includes returns, post-invoice sales discounts and miscellaneous
claims.The audit opinion was unqualified.OK
1. Label the box below to create a two-pass schedule legend.
Ans:
ES
EF
Float
Activity Name

17. Duration
LS
LF
3. In the example below, label which activities are predecessors
and which activities are successors.
Ans:
Predecessor: An activity which comes before another activity.
So, it is activity “A” and activity “B”.
Successor: An activity that must occur after another activity.
So, it is activity “C”.
5. Calculate early start, early finish, late start, late finish, and
float for each of the activities in the network below. The
duration of each activity is given.
Based on the analysis for the two-pass schedule:
A B
C D
Duration: 12 Duration: 4
Duration: 1 Duration: 7
Early start: 0 Early start: 12 Early
start: 16 Early start: 12

18. Early finish: 12 Early finish: 16 Early
finish: 17 Early finish:19
Late start: 0 Late start: 14 Late
start: 18 Late start: 12
Late finish: 12 Late finish: 18 Late
finish: 19 Late finish: 19
Float: 0 Float: 2
Float: 2 Float: 0
E
Duration: 3 Early finish: 22 Late finish:
22
Early start:19 Late start: 19 Float:
0
6. Identify the critical path for the network in Exercise 5. How
long should the project take?
Ans: The critical path is:
A – D – E, which has the longest path of 22 days.
9. Given the information below, create the project schedule
network. Then, using the enumeration method, calculate and
show all of the paths through the network. Show how long each
path will take. Identify the critical path. Show the schedule on a
Gantt chart showing critical and noncritical activities and float.
The critical path is
B – A – C – F – H – I, which takes 25 days.
Other paths:
B – E – H – I = 20 days
B – A – D – G – I = 23 days
Part 2 Scheduling Problem (50 points)
Complete the following:

19. Your child is a member of the school theater group and have
been asked to prepare the schedule, etc. for a skit to be
performed during the 4th of July celebration in the local village
square. As a volunteer, you offer to serve as the project
controller because of your expertise in schedule management.
1. Construct an AON diagram similar to the format used in the
Youtube videos found in the commentary using an MS Excel
spreadsheet. Ensure that you include a Start activity and a
Finish activity. Include a legend (example is the one completed
in Question 1, Part 1.
1. Calculate the estimated time for each activity using PERT
techniques for the 3 estimates provided. Include a sample
calculation.
1. Prepare a table that identifies all paths and their lengths.
Which path is the critical path?
1. During the execution phase of the skit project, one of the
activities on the critical path is delayed by one day. Is this
serious?
1. Using the activity estimates for optimistic, pessimistic and
most likely time to complete activities on the critical path,
qualitatively discuss the estimate uncertainty of the critical
path.
ANS: 1
2.
Different Paths are:
1. : 1-5-10-13-15
1. : 1-4-9-13-15
1. : 1-4-6-8-12-15
1. : 2-6-8-12-15
1. : 2-3-8-12-15
1. : 2-3-7-11
1. : 2-3-7-14

20. #
Optimistic
Most Likely
Pessimistic
1
39
44
55
2
39
48
63
3
41
52
63
4
37
43
49
5
35
42
49
6
32
37
42
7
29
34
39
3.
Activity

21. Duration
Early Start
Early Finish
Late Start
Late Finish
Float
1
4
0
4
0
4
0
2
5
0
5
0
5
0
3
5
10
15
15
20
5
4
10
4
14
4
14
0
5
12

22. 4
16
11
23
7
6
6
14
20
14
20
0
7
10
10
20
25
35
15
8
7
20
27
20
27
0
9
9
14
23
17
26
3
10
3
16

23. 19
23
26
7
11
17
20
37
35
52
15
12
8
27
35
27
35
0
13
9
23
32
26
35
3
14
14
20
34
38
52
18
15
17
35
52

24. 35
52
0
The critical path is 1-4-6-8-12-15 = 4+10+6+7+8+17 = 52
4.
If one activity in the critical path is delayed for one day, the
critical path will delay one day and the whole project will delay
for a day too.
5.
If we use optimistic time for the critical path, that is 41 days,
the pessimistic path is 63 days, which means 22 days of
uncertainty can be saved.