Nike reports 2008 net operating working capital of ($ 5,060) million and 2008 long-term operating assets of
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Nike reports 2008 net operating working capital of \(\$ 5,060\) million and 2008 long-term operating assets of \(\$ 2,139\) million.
a. Forecast Nike's 2009 net operating working capital assuming forecasted sales of \(\$ 19,372\) million, net operating working capital turnover of 3.68 times, and long-term operating asset turnover of 8.71 times. (Both turnover rates are computed here using year-end balances.)
b. Does it seem reasonable that Nike's operating working capital turnover is less than its long-term operating asset turnover? Explain.
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Related Book For
Financial Accounting For MBAs
ISBN: 9781934319345
4th Edition
Authors: Peter D. Easton, John J. Wild, Robert F. Halsey, Mary Lea McAnally
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