REQUIRED: Identify the errors in the notes and correct them. Specifically: - If a wrong statement is made in a sentence,

[answerhappygod]

REQUIRED: Identify the errors in the notes and correct them.
Specifically: - If a wrong statement is made in a sentence, provide
a correct sentence. - If there is a wrong result of a calculation,
do the calculation by yourself and provide the correct result. -
List the corrections in the order the errors appear in the notes. -
Number your corrections consecutively, i.e. 1., 2., 3. etc

Required Identify The Errors In The Notes And Correct Them Specifically If A Wrong Statement Is Made In A Sentence 1 (41.64 KiB) Viewed 57 times

Ratio analysis Financial statements of adidas (directly copied from the annual report 2020): oddas AG Consolidated Statement of Rnancial Position (IFRS)Chions Note Dec. 31. 2020 Dec.31.2019 OS 06 07 2,220 292 09 Assets Cash and cash equivalents Short-term financial assets Accounts receivable Other current financial assets Inventories Income tax receivables Other current assets Assessed as held for sale Total current assets 3.994 0 1,952 702 4,397 109 999 564 4,095 09 36 10 1,076 0 12,154 10,934 Property, plant and equipment Right-of- usets Boodwill Trademarks Other intangible assets Long-term financial assets Other non-current financial assets Deferred to assets Other non-currents Total non-current assets 12 13 16 16 15 2,157 2,230 1,200 750 252 353 416 1,233 100 3,099 2,390 2,931 1,257 659 305 367 450 1,093 103 9,746 16 34 17 Total ansata 21,053 20,680 18 83 2.703 21 19 235 Liabilities and equity Short-term barrewing Accounts payable Current lease bibilities Other current financial abilities Income taxes Other current prions Current accrued liabilities Other current abilities Total current liabilities 686 2.390 563 466 512 1.109 2,192 398 3,627 20 22 2,439 538 3,754 18 21 24 Long-term borrowings Non-current lease listes Other non-current financial liabilities Persions and similar obligations Deferred tax bilis Other non current provisions Non-current accrued liabetes Other non current liabilities Total non-current liabilities 2,482 2.159 115 284 241 229 B 1,595 2,399 92 229 290 20 22 26 9 12 7 5,535 4,868 196 Share capital Reserves Retained earnings Shareholders' equity 195 14741 6,733 4,454 6,555 6,796 Non-controlling interests 232 261 Total equity 4,691 Total liabilities and equity 21,053 20,640
adides A Consoldated income Statement (IFRS) Chillons Note 31 11, 14, 32,30 Year ending Dec 31, 2020 19,844 9,990 9,855 49.7% 83 42 9,229 46.5% 2,573 13.09 4,962 25.0% 1,461 24% 119 Year ending Dec 31, 2019 23,640 11,347 12,293 52.0 154 56 9,863 41.6 3,042 12.9% 4,99% 21.15 1,652 7.05 134 Net sales Cost of sales Gross profit of net sales! Royalty and commission income Other operating income Other operating expenses 1% of tot sales! Marketing and point of sale expense 1% of sales Darbution and sing expenses 1% of sales General and ministration expenses 1% of net sales Sundry expenses 1% of net sales Impairment losses Intl on accounts receivable and contract assets Operating profit 1% of net sales! Financial income Financial expenses Income before taxes of tot sales come taxes 1% of income before taxes Net income from continuing operations 1% of net sales Gain from descontinued geration, not ofta Net income 0.69 116 36 34 751 38% 29 204 575 2.9% 166 25.4% 429 2.2% 13 463 2,640 11.3% 64 166 2,558 10.8% USD 25.0% 1,918 36 59 1,879 Note: For calculating return on equity, liabilities-to-equity ratio and debt-to-equity ratio, 'Total equity' from the balance sheet above must be used. Ratios: Ratio Return on equity Return on assets Net profit margin Asset turnover Current ratio Quick ratio Liabilities-to-equity ratio Debt-to-equity ratio 2020 6.69% 2.12% 2.23% 94.26% 1.38 0.67 214.6% 47.3% Interpretation: Current ratio decreased from 2019 to 2020. Liabilities-to-equity ratio increased from 2019 to 2020. Debt-to-equity ratio increased from 2019 to 2020. There are no major concerns regarding the company's liquidity. There are no major concerns regarding the company's solvency. There are no major concerns regarding the company's profitability. The quick ratio is a more conservative measure of liquidity than the current ratio.
Accounting adjustment: capitalising marketing expenditure Marketing expenditure (€ millions) 2020 2,573 2019 3,042 2018 3,001 2017 2,724 2016 2,410 Assumptions for capitalising marketing expenditure as an intangible asset: - Marketing spending occurs evenly throughout the year. - Only half a year's amortisation is taken on the latest year's spending. Average expected life of marketing investments is 4 years. Amortisation of the intangible asset using the straight-line method (with no residual value). Note: Assume that the table and text above do not contain any errors. Findings: Capitalising marketing expenditure results in a marketing asset of €2,573 million on 31 December 2020. Capitalising marketing expenditure results in a marketing amortisation expense of €2,573 million in 2020. Capitalising marketing expenditure increases total assets. Capitalising marketing expenditure results in a lower asset turnover. Capitalising marketing expenditure results in a lower debt-to-equity ratio. Capitalising marketing expenditure increases the gross profit margin.