Suppose the following items were taken from the balance sheet of Nike, Inc. (All dollars are in millions.) (LO 3)

1. Cash $2,291.1 7. Inventory $2,357.0 2. Accounts receivable 2,883.9 8. Income taxes payable 86.3 3. Common stock 2,874.2 9. Equipment 1,957.7 4. Notes payable 342.9 10. Retained earnings 5,818.9 5. Buildings 3,759.9 11. Accounts payable 2,815.8 6. Mortgage payable 1,311.5 Instructions Perform each of the following.

(a) Classify each of these items as an asset, liability, or stockholders’ equity, and determine the total dollar amount for each classifi cation.

(b) Determine Nike’s accounting equation by calculating the value of total assets, total liabilities, and total stockholders’ equity.

(c) To what extent does Nike rely on debt versus equity fi nancing?