1 A(n). a. qualified b. unqualified c. adverse d. disclaimer audit opinion was issued on Nike's financial statements and notes to the financial statements for the most recent reporting period. QUESTION 2 The independent accounting firm during its most recent reporting period. a. Deloitte and Touche b. PricewaterhouseCoopers c. Ernst & Young d. KPMG expressed an opinion as to whether Nike's financial statements present fairly, in all material respects, the company's financial position, results of operations, and cash flows QUESTION 3 As a percentage of total assets Nike's cash and equivalents: a. decreased from 5/31/2021 to 5/31/2022. b. increased from 5/31/2021 to 5/31/2022. c. did not change from 5/31/2021 to 5/31/2022. Od. cannot be determined QUESTION 4 Nike's balance sheet account that is increased for sales made on account (credit sales) is: a. Cash. b. Revenues. c. Accounts receivable. Od. Accounts payable. QUESTION 5 The amount of cash that Nike estimated it will collect from credit sales to customers at the most recent balance sheet date was (in millions): O a. $4,701. O b. $46,710. c. $21,479. d. $4,667. QUESTION 6 Over the last two balance sheet dates the total amount that Nike's customers owe the company from credit sales has: a. stayed the same b. decreased c. increased d. cannot be determined QUESTION 7 The financial statement impact from Nike collecting an accounts receivable from a customer is: a. revenues on the income statement is increased and accounts receivable on the balance sheet is increased. b. revenues on the income statement is increased and accounts receivable on the balance sheet is decreased. c. total assets are decreased on the balance sheet and net income on the income statement is increased. d. total assets are unchanged on the balance sheet and the income statement is not affected. QUESTION 8 When Nike write-offs a customer's uncollectible accounts receivable, the net amount for accounts receivable shown on Nike's balance sheet will not change. True False QUESTION 9 Cash flows from activities are when Nike collects an accounts receivable from a customer. a. operating, decreased b. investing, decreased c. financing, increased Od. operating, increased QUESTION 10 Use the following formula to calculate the company's accounts receivable turnover for the last two balance sheet dates and select the correct answer below. Accounts receivable turnover ratio = Revenues/Accounts receivable, net (Round answer to the nearest whole number.) a. Nike collected accounts receivables at the same rate in FYE 5/31/2022 than in FYE 5/31/2021. b. Nike collected accounts receivable quicker in FYE 5/31/2022 than FYE 5/31/2021. c. Nike collected accounts receivable at a slower rate in FYE 5/31/2022 as in FYE 5/31/2021. d. Cannot determine Nike's rate of collection of accounts receivable. NIKE, INC. CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share data) Revenues Cost of sales Gross profit Demand creation expense Operating overhead expense Total selling and administrative expense Interest expense (income), net Other (income) expense, net Income before income taxes Income tax expense NET INCOME Earnings per common share: Basic Diluted Weighted average common shares outstanding: Basic Diluted The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement. YEAR ENDED MAY 31, 2022 2021 2020 $ 46,710 $ 44,538 $ 37,403 25,231 24,576 21,162 21,479 19,962 16,241 3,850 3,114 3,592 10,954 9,911 9,534 14,804 13,025 13,126 205 262 89 (181) 14 139 6,651 6,661 2,887 605 934 348 $ 6,046 $ 5,727 $ 2,539 $ 3.83 $ 3.64 $ 1.63 $ 3.75 $ 3.56 $ 1.60 1,578.8 1,573.0 1,558.8 1,610.8 1,609.4 1,591.6 NIKE, INC. CONSOLIDATED BALANCE SHEETS (In millions) ASSETS Current assets: Cash and equivalents Short-term investments Accounts receivable, net Inventories Prepaid expenses and other current assets Total current assets Property, plant and equipment, net Operating lease right-of-use assets, net Identifiable intangible assets, net Goodwill Deferred income taxes and other assets TOTAL ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long-term debt Notes payable Accounts payable Current portion of operating lease liabilities Accrued liabilities Income taxes payable Total current liabilities Long-term debt Operating lease liabilities Deferred income taxes and other liabilities Commitments and contingencies (Note 18) Redeemable preferred stock Shareholders' equity: Common stock at stated value: Class A convertible-305 and 305 shares outstanding Class B-1,266 and 1,273 shares outstanding Capital in excess of stated value Retained earnings (deficit) Accumulated other comprehensive income (loss) Total shareholders' equity TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement. MAY 31, 2022 2021 $ 8,574 $ 9,889 4,423 3,587 4,667 4,463 8,420 6.854 2,129 1,498 28,213 26,291 4,791 4,904 2,926 3,113 286 269 284 242 3,821 2,921 $ 40,321 $ 37,740 $ 500 $ - 10 2 3,358 2,836 420 467 6,220 6,063 222 306 10,730 9,674 8,920 9,413 2,777 2,931 2,613 2,955 3 3 11,484 9,965 318 (380) 3,476 3,179 15,281 12,767 $ 40,321 $ 37,740 NIKE, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in millions) Cash provided (used) by operations: Net income Adjustments to reconcile net income to net cash provided (used) by operations: Depreciation Deferred income taxes Stock-based compensation Amortization, impairment and other Net foreign currency adjustments Changes in certain working capital components and other assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in inventories 2022 YEAR ENDED MAY 31, 2021 2020 $ 6,046 $ 5,727 $ 2,539 717 744 721 (650) (385) (380) 638 611 429 123 53 398 (26) (138) 23 (504) (1,606) 1,239 (1,676) 507 (1,854) (Increase) decrease in prepaid expenses, operating lease right-of-use assets and other current and non-current assets (845) (182) (654) Increase (decrease) in accounts payable, accrued liabilities, operating lease liabilities and other current and non- current liabilities 1,365 1,326 24 Cash provided (used) by operations 5,188 6,657 2,485 Cash provided (used) by investing activities: Purchases of short-term investments (12,913) (9,961) (2,426) Maturities of short-term investments Sales of short-term investments Additions to property, plant and equipment Other investing activities 8,199 4,236 74 3,967 2,449 2,379 (758) (695) (1,086) (19) Cash provided (used) by investing activities Cash provided (used) by financing activities: (1,524) 171 (3,800) (1,028) 6,134 49 31 Proceeds from borrowings, net of debt issuance costs Increase (decrease) in notes payable, net Repayment of borrowings Proceeds from exercise of stock options and other stock issuances Repurchase of common stock Dividends-common and preferred Other financing activities Cash provided (used) by financing activities Effect of exchange rate changes on cash and equivalents Net increase (decrease) in cash and equivalents Cash and equivalents, beginning of year CASH AND EQUIVALENTS, END OF YEAR Supplemental disclosure of cash flow information: Cash paid during the year for: Interest, net of capitalized interest Income taxes Non-cash additions to property, plant and equipment Dividends declared and not paid The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement. - - 15 (52) (197) (6) 1,151 1,172 885 (4,014) (608) (3,067) (1,837) (1,638) (1,452) (151) (136) (52) (4,836) (1,459) 2,491 (143) (1,315) 143 (66) 1,541 3,882 9.889 8,348 4,466 $ 8,574 $ 9,889 $ 8,348 $ 290 $ 293 $ 140 1,231 1,177 1,028 160 179 121 480 438 385