PREPARATION OF RATIOS. Use the NIKE financial statements in Problem 15-37 and the following data to respond to the requirements below.

REQUIRED:
- Prepare the 19 financial ratios for NIKE for 1993 and 1992.
Is NIKE’s short-term liquidity adequate?
Is NIKE operating efficiently?
Is NIKE profitable?
- Should long-term creditors regard NIKE as a high-risk or a low-risk firm?

Are NIKE’s shareholders earning an adequate return on their investment?

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ITEM Average number of common shares outstanding Accounts receivable Inventories Total assets Total common shareholders' equity Dividends per common share Market price per share: High Low 1993 1992 1991 77,063 76,602 76,067 $ 667,547 $ 596,018 $ 521,588 592,986 471,202 586,594 2,187,463 1,872,861 1,708,430 1,646,026 1,331,695 1,032,789 .75 .59 .52 90% 77% 54 55 35% 26 REQUIRED: 1. Prepare the 19 financial ratios for NIKE for 1993 and 1992. 2. Is NIKE's short-term liquidity adequate? 3. Is NIKE operating efficiently? 4. Is NIKE profitable? 5. Should long-term creditors regard NIKE as a high-risk or a low-risk firm? 6. Are NIKE's shareholders earning an adequate return on their investment?