comparing financial statements for 2 related companies

1.Find the financial statements for 2 related/similar companies (Nike and reebok) and calculate the following ratios for each (note whether a particular ratio is not applicable):

· Current Ratio

· Acid-Test Ratio

· Debt Ratio

· Equity Ratio

· Accounts Receivable Turnover

· Days Sales uncollected

· Inventory Turnover

· Days Sales in Inventory

2.Write a paragraph describing the difference between the two companies for 3 of the ratios calculated.

3.Prepare common-size and trend percentages for the income statements for each company.

4.Write a brief (minimum 3 paragraphs) analysis and comparison of the income statement items and differences between the two. Be sure to explain why the common-size statement is helpful in this analysis.