PART I
1. Prepare common-size balance sheets at the end of each year.
2. What do the common-size statements reveal about the company's financial structure?
3. Prepare a trend analysis of adidas-Salomon's balance sheets.
4. What does the trend analysis reveal about the company's financial structure?
5. Which approach - common-size or trend analysis - was most revealing? Why?
PART II
Now print out adidas-Salomon's income statement for the last five years.
Questions:
After having reported the comparative data on an Excel worksheet: