Nike, Inc. , had the following condensed balance sheet on May 31, 2011 ($ in millions):

Suppose the following transactions occurred during the first 3 days of June ($ in millions):
1. Nike acquired inventories for cash, $28.
2. Nike acquired inventories on open account, $19.
3. Nike returned for full credit, $4, some unsatisfactory shoes that it acquired on open account in May.
4. Nike acquired $14 of equipment for a cash down payment of $5, plus a 2-year promissory note of $9.
5. To encourage wider displays, Nike sold some special store equipment to New York area stores for $40 cash. The equipment had cost $40 in the preceding month.
6. Clint Eastwood produced, directed, and starred in a movie. As a favor to a Nike executive, he agreed to display Nike shoes in a basketball scene. Nike paid no fee.
7. Nike disbursed cash to reduce accounts payable, $16.
8. Nike borrowed cash from a bank, $50.
9. Nike sold additional common stock for cash to new investors, $90.
10. The president of the company sold 5,000 shares of his personal holdings of Nike stock through his stockbroker.

Required
1. By using a format similar to Exhibit, prepare an analysis showing the effects of the June transactions on the financial position of Nike.

2. Prepare a balance sheet as of June 3.

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Assets Liabilities and Stockholders' Equity 5,155 9,843 $ 1,955 Total liabilities Cash Inventories Property, plant, and equipment Other assets Total assets 2,715 Stockholders' equity 2,115 8,213 Total liabilities and stockholders' equity$14,998 $14,998 Description of Transactions Assets Liabilities Owner's Equity Lopez, Cash nventory +EquipmentPayable Payable Capital Merchandise Store Note Accounts (1) Initial investment (2) Loan from ban!k (3) Acquire store equipment +400.000 +400.000 +100,000 = +100,000 15,000 (4) Acquire inventory for cash-120,000 for cash +15,000 = +120,000 +10,000 +30,000 (5) Acquire inventory on credit +10,000 (6) Acquire inventory for cash plus credit (7) Sale of equipment (8) Return of inventory -10,000 +1,000 +20,000 -1,000 acquired on January 6 (9) Payment to creditor Balance ,January 12, 20X2 -800 4,000 352,000 + -800 -4,000 25, 200+ 159,200 + 14.000 100.000 + 400.000 = 525,200 525,200