analyzing a companies’ financial reports and financial performance.

Favorite company Nike Competitor Adidas

write a written report that addresses the following:

Refer to the companies’ financial statements and the accompanying notes to answer the following questions.

Property, Plant, and Equipment

1. What descriptions are used by your favorite company in its 2023 balance sheet to classify its property, plant, and equipment? Compare with the competitor company.

2. What method or methods of depreciation does your favorite company use to depreciate its property, plant, and equipment in 2023? Compare with the competitor company.

3. Over what estimated useful lives does your favorite company depreciate its property, plant, and equipment in 2023? Compare with the competitor company.

4. What amounts for depreciation and amortization expense did your favorite company charge to its income statement in 2023, 2022, and 2021? Compare with the competitor company.

5. What were the capital expenditures for property, plant, and equipment made by your favorite company in 2023, 2022, and 2021? Compare with the competitor company.

Intangible Assets

1. Does your favorite company report any intangible assets, especially goodwill, in its 2023 financial statements and accompanying notes? Compare with the competitor company.

2. What was the change in the amount of intangibles from 2022 to 2023 for your favorite company? Compare with the competitor company.

3. On what basis and over what periods of time did your favorite company amortize its intangible assets in 2023? Compare with the competitor company.

4. How much research and development (R&D) cost was expensed by your favorite company in 2022 and 2023? What percentage of sales revenue and net income did your favorite company spend on R&D in 2022 and 2023? Compare with the competitor company.

Liabilities and Contingencies

1. What was your favorite company’s 2023 short-term debt and related weighted-average interest rate on this debt? Compare with the competitor company.

2. What types of commitments and contingencies has your favorite company reported in its 2023 financial statements? What is management’s reaction to these contingencies? Compare with the competitor company.

3. What cash outflow obligations related to the repayment of long-term debt does your favorite company have over the next 5 years? Compare with the competitor company.

4. Did your favorite company indicate that it believes that it can meet business requirements in the foreseeable future in its 2023 financial statements? Prepare an assessment of its liquidity, solvency, and financial flexibility using ratio analysis. Compare with the competitor company.

Leases

1.What types of leases are used by your favorite company and on what assets are these leases primarily used in 2023? Compare with the competitor company.

2.How long-term are some of your favorite company’s leases in 2023? What are some of the characteristics or provisions of your favorite company’s (as lessee) leases? Compare with the competitor company.

3.What did your favorite company report in 2023 as its future minimum annual rental commitments under non-cancelable leases? Compare with the competitor company.

4.At year-end 2023, what was the present value of the minimum rental payments under your favorite company’s capital leases? How much imputed interest was deducted from the future minimum annual rental commitments to arrive at the present value? Compare with the competitor company.

5.What were the amounts and details reported by your favorite company for rental expense in 2023, 2022, and 2021? Compare with the competitor company.

Investments

1.What investments does your favorite company report in 2023, and how are these investments accounted for in its financial statements? Compare with the competitor company.

2.How are your favorite company’s investments valued in 2023? How does your favorite company determine fair value? Compare with the competitor company.

3.How does your favorite company use derivative financial instruments in 2023? Compare with the competitor company.

4.What was cash used in (for) investing activities during 2023 (from the statement of cash flows)? Compare with the competitor company.

5.What was the total other comprehensive income for the year 2023? Compare with the competitor company.

6.What was the unrealized gains or losses reported as part of other comprehensive income in 2023? Compare with the competitor company.

The project analyzes a companies’ financial reports and financial performance. Submit a
final written report
COMPANY WILL BE NIKE & ADIDAS
•
Pick up your favorite company. Your favorite company should be a manufacturing
company, with securities publicly traded on a U.S. stock exchange.
•
Pick up a competitor company. The competitor company should be a public company,
with securities publicly traded on a U.S. stock exchange.
•
Please do NOT choose the Procter & Gamble Company as your favorite company or
competitor company.
•
submit a final written report (no more than ten pages) with answers to all questions by
Please write a written report that addresses the following:
Refer to the companies’ financial statements and the accompanying notes to answer the
following questions.
Property, Plant, and Equipment
1. What descriptions are used by your favorite company in its 2023 balance sheet to classify
its property, plant, and equipment? Compare with the competitor company.
2. What method or methods of depreciation does your favorite company use to depreciate
its property, plant, and equipment in 2023? Compare with the competitor company.
3. Over what estimated useful lives does your favorite company depreciate its property,
plant, and equipment in 2023? Compare with the competitor company.
4. What amounts for depreciation and amortization expense did your favorite company
charge to its income statement in 2023, 2022, and 2021? Compare with the competitor
company.
5. What were the capital expenditures for property, plant, and equipment made by your
favorite company in 2023, 2022, and 2021? Compare with the competitor company.
Intangible Assets
1. Does your favorite company report any intangible assets, especially goodwill, in its 2023
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financial statements and accompanying notes? Compare with the competitor company.
2. What was the change in the amount of intangibles from 2022 to 2023 for your favorite
company? Compare with the competitor company.
3. On what basis and over what periods of time did your favorite company amortize its
intangible assets in 2023? Compare with the competitor company.
4. How much research and development (R&D) cost was expensed by your favorite
company in 2022 and 2023? What percentage of sales revenue and net income did your
favorite company spend on R&D in 2022 and 2023? Compare with the competitor
company.
Liabilities and Contingencies
1. What was your favorite company’s 2023 short-term debt and related weighted-average
interest rate on this debt? Compare with the competitor company.
2. What types of commitments and contingencies has your favorite company reported in its
2023 financial statements? What is management’s reaction to these contingencies?
Compare with the competitor company.
3. What cash outflow obligations related to the repayment of long-term debt does your
favorite company have over the next 5 years? Compare with the competitor company.
4. Did your favorite company indicates that it believes that it has the ability to meet
business requirements in the foreseeable future in its 2023 financial statements? Prepare
an assessment of its liquidity, solvency, and financial flexibility using ratio analysis.
Compare with the competitor company.
Leases
1. What types of leases are used by your favorite company and on what assets are these
leases primarily used in 2023? Compare with the competitor company.
2. How long-term are some of your favorite company’s leases in 2023? What are some of
the characteristics or provisions of your favorite company’s (as lessee) leases? Compare
with the competitor company.
3. What did your favorite company report in 2023 as its future minimum annual rental
commitments under non-cancelable leases? Compare with the competitor company.
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4. At year-end 2023, what was the present value of the minimum rental payments under
your favorite company’s capital leases? How much imputed interest was deducted from
the future minimum annual rental commitments to arrive at the present value? Compare
with the competitor company.
5. What were the amounts and details reported by your favorite company for rental expense
in 2023, 2022, and 2021? Compare with the competitor company.
Investments
1. What investments does your favorite company report in 2023, and how are these
investments accounted for in its financial statements? Compare with the competitor
company.
2. How are your favorite company’s investments valued in 2023? How does your favorite
company determine fair value? Compare with the competitor company.
3. How does your favorite company use derivative financial instruments in 2023? Compare
with the competitor company.
4. What was cash used in (for) investing activities during 2023 (from the statement of cash
flows)? Compare with the competitor company.
5. What was the total other comprehensive income for the year 2023? Compare with the
competitor company.
6. What was the unrealized gains or losses reported as part of other comprehensive income
in 2023? Compare with the competitor company.
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