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Financial analysis we were told to prepare a common

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Financial Analysis We were told to prepare a common-size income statement using only the most recent year of each corporation. As we found each companies income statement we came up with the following net income comparisons for 2012: The net income for each company was Polo Ralph Lauren $681; Nike $2,223; Adidas 68$. Below we will display each company’s income statement to give further explanation of where the numbers came from. Income Statements Polo Ralph Lauren Currency in Millions 31-May-2012 Revenues $ 6,859.50 TOTAL REVENUES $ 6,859.50 Cost Of Goods Sold $ 2,861.40 GROSS PROFIT $ 3,998.10 $ 2,915.20 4
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$ 28.90 OTHER OPERATING EXPENSES, TOTAL $ 2,944.10 OPERATING INCOME $ 1,054.00 Interest Expense $ (24.50) Interest And Investment Income $ 11.00 Other Non-Operating Expenses, Total $ (10.80) $ (12.40) Other Unusual Items, Total $ (2.20) EBT, INCLUDING UNUSUAL ITEMS $ 1,015.10 Income Tax Expense $ 334.10 Earnings From Continuing Operations $ 681.00 NET INCOME $ 681.00 NET INCOME TO COMMON INCLUDING EXTRA ITEMS $ 681.00 NET INCOME TO COMMON EXCLUDING EXTRA ITEMS $ 681.00 5
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Nike Inc. 12 months Ended 31-May- 2012 Revenues $ 24,128.00 Cost of sales $ (13,657.00) Gross margin $ 10,471.00 Demand creation expense $ (2,711.00) Operating overhead expense $ (4,720.00) Selling and administrative expense $ 7,431.00 Reconstructing charges $ - Goodwill impairment $ - Intangible and other asset impairment $ - Operating income $ 3,040.00 Interest income $ 30.00 6
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Interest expense $ (33.00) Interest income (expense), net $ (3.00) Other income (expense), net $ (54.00) Income before income taxes $ 2,983.00 Income taxes $ (760.00) Net income $ 2,223.00 Adidas Income Statement 2012 (currency in millions of U.S dollars) 31-December-2012 revenues $ 19,437.90 TOTAL REVENUES $ 19,437.90 cost of goods sold $ 10,161.10 GROSS PROFIT $ 9,276.90 selling general and admin expenses, total $ 2,542.90 other operating expenses 5232.O OTHER OPERATING EXPENCES, TOTAL $ 7,774.90 OPERATING INCOME $ 1,502.00 interest expense $ (126.70) interest and investment income $ 45.70 other Non-operating expenses, total $ (9.10) other non-operating income (expenses) $ - impairment of goodwill $ (346.10) gain (loss) on sale of assets $ 1.30 other unusual items, total $ 44.40 EBT, INCLUDING USUAL ITEMS $ 1,111.40 income tax expense $ 427.10 minority interest in earnings $ 2.60 earnings from continuing operations $ 684.40 NET INCOME $ 687.00 NET INCOME TO COMMON INCLUDING EXTRA ITEMS $ 687.00 7
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Balance Sheets We were then asked to compute balance sheet data in trend percent’s using the year 2009 as the base year. Balance sheet data from 2009-2011 will be displayed within each company as follows: Polo Ralph Lauren Period Ended 4/2/2011 4/3/2010 3/28/2009 In millions of USD (except for per share items) Cash and Short Term Investments 1,046.90 1,147.20 819.9 8
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Total Receivables, Net 500.6 383.2
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Financial Analysis We were told to prepare a common size...

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