Access the 2010 annual report for Nike, Inc , by clicking on the Investors and Annual Reports links at www nikebiz com Required a Examine the balance sheet and identify the name Nike uses for fixed assets Are fixed assets reported at net book value b Examine Note 3 and identify the original cost of...

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Access the 2010 annual report for Nike, Inc. , by clicking on the Investors and Annual Reports

Question:

Access the 2010 annual report for Nike, Inc. , by clicking on the Investors and Annual Reports links at www.nikebiz.com.
Required
a. Examine the and identify the name Nike uses for fixed assets. Are fixed assets reported at net book value?
b. Examine Note 3 and identify the original cost of Nike's fixed assets and the current balance in accumulated depreciation.
c. According to Note 1, what method of depreciation does Nike use?
d. According to the statement of cash flows, how much has Nike spent on fixed assets over the past three years? Does the company generate enough cash from operations to sustain that level of investment?
e. Calculate the average age and useful life of Nike's fixed assets. Use "Depreciation" on the statement of cash flows as depreciation expense for the year. What can you conclude from these calculations?
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...