1. NIKE,INC

Financial Statement Analysis

The financial statements for Nike, Inc., are presented in Appendix C. Use the following additional information (in millions):

Accounts receivable at May 31, 2016	$3,241
Inventories at May 31, 2016	4,838
Total assets at May 31, 2016	21,379
Stockholders' equity at May 31, 2016	12,258

1. Determine the following measures for the fiscal years ended May 31, 2018, and May 31, 2017. Assume 365 days a year. Do not round interim calculations. Round the working capital amount in part (a) to the nearest dollar. Round all other final answers to one decimal place. When required, use the rounded final answers in subsequent computations.

		May 31, 2018			May 31, 2017
a.	Working capital (in millions)	$
b.	Current ratio
c.	Quick ratio
d.	Accounts receivable turnover
e.	Number of days' sales in receivables
f.	Inventory turnover
g.	Number of days' sales in inventory
h.	Ratio of liabilities to stockholders' equity
i.	Asset turnover
j.	Return on total assets
k.	Return on stockholders' equity
l.	Price-earnings ratio, assuming that the market price was $72.12 per share on May 29, 2018, and $53.06 per share on May 30, 2017.

2. The working capital__________ between 2017 and 2018. The current and quick ratios both __________ during 2018. The accounts receivable turnover ________ and number of days sales in receivables ______ slightly. The margin of protection to creditors__________ . The return on total assets _________ during 2018. The return on stockholders equity ________ .

NIKE, Inc. Consolidated Statements of Income 5 (ko pralkaran, except per share data) Revenues Cost of Gross profit Demand creation experise Operating overhead expense Total selling and administrative expense Interest expense (income), net Other expense (nome), not Incore before income taxes Income tax expense NET INCOME 2018 36.397 20,441 15,956 3,677 7,934 11,511 Year Ended May 31, 2017 34,360 19.036 15,312 3.341 7.222 10,663 59 (196) 4,886 640 2016 32376 17,405 14.971 3.270 74191 10.409 19 (140) 4.623 66 4,325 2,392 1.933 4,240 $ 3,760 Earnings per common share Banio Diluted 1.19 250 $ $ 5 # 221 2.10 251 0.78 $ 0.70 $ 003 Dividends declared per common share The con Notes to the Consoledancial Statements are an integral part of this moment, NIKE, Inc. Consolidated Statements of Cash Flows Year Ended May 31, 2017 2010 2016 1533 42405 3.750 649 (80) 215 (273) 215 10 23 13 se 0961 50 (426) (231) (120) 35 1.515 4.56 (161) (580) 3,840 3.390 (4.783) 361 (5.328) 3.623 2,423 2430 (5.367) 2.924 2,380 150 (1.143) 10 (1.105) din mo Cash provided by operations: Net income Adustments to reconcile net income to me cash provided by option Depreciation Deferred income taxes Stock-based compensation Amortization and other Not foreign currency adjustments Changes in certain working capital components and others and is Decrease increase in accounts receivable Increase in inventories Decrease increasa) in prepaid expenses and other current and non-current assets Increase (decrease in accounts payable, accrued tables and other burnt and noncurrent Cash provided by operations Cash provided (used) by investing activities Purchases of short-term investments Maurities of short-term investment Soles of short-term investments Investments in reverse repurchase agreement Additions to property, plant and equipment Disposals of property, plant and equipment Other investing activities Cash provided (ned) by investing activities Cash used by financing activities: Net proceeds from long term dessa Long-term debt payments including current portion Increase (decrease in roles payable Payments on capital lease and other financing obligatione Proceeds from exercise of stock options and other stock issances Repurchase of common stock Dividends --common and preferred Tax payments for the fomento quitars Cash used by financing Effect of exchange rate changes on cash and equivalents Net increase decrease in the equivalents Cash and events beginning of your CASH AND EQUIVALENTS, END OF YEAR Supplemental disclosure of cash flow information Cashpad uning the year for Interest, netol cated interest Income to Non- coton to property plant and en Didends declared and road The company to the Constant 3 (25) 34 275 (1.008) (1.034) 03 13 (23) 327 (17) 489 3223) 11.15 293 (100) (07) 07 307 2.238) (1.022) (1203 12.99) 395 15 2148) (20) 670 (105 441 3308 (7143 3.85 2.130 5 $ 00 5 70 TOO 250 NIKE, Inc. Consolidated Balance Sheets May 31, 2018 2017 5 4249 999 3,499 5,201 1.130 15.134 4.454 285 154 2,509 22,536 3.808 2.371 3,077 5,056 1.150 16,061 3,980 283 139 2.787 23,259 $ 5 $ 6 (In Nons) ASSETS Current aseets: Cash and equivalent Short-term investments Accounts receivablo, not Inventories Prepaid expenses and other current sota Total current assots Property, plant and equipment, not Identifiable intangible assets, not Goodw Deferred inconsties and other assets TOTAL ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY Current abilities Current portion of tong-term debt Notes payable Accounts payable Accrued abilities Income taxon payable Total current liabilities Long-term debt Deferred income taxes and other abilities Commitments and contingenciou (Note 15) Redeemable preferred stook Shareholders' qui: Common slook at stated value Class A convertible -- 329 and 329 stores outstanding Class B 1272 and 1.314 shares outstanding Capital in Cos of stated value Accumulated other comprehensive loss Retained eaming Total shareholders' equity TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 325 335 2,279 3,269 150 2,048 3,011 34 5,474 3.471 1.907 6.040 3,468 3,216 3 6,384 3,517 9,012 22,630 5.710 (213) 6,907 12,407 23,259 $ The accompanying Notes to the Consolidated Financial Statements are an integral part of this statom NIKE, Inc. Consolidated Statements of Comprehensive Income 2018 Year Ended May 31, 2017 $ 2010 1,933 3 3,700 (nt miliona) Net income Other comprahensive income do not of tac Change in not foreign currency translation to Change in not going oss) on oth flow dos Change in nes gainst on other Tout other comprehensive income foss), net of tox TOTAL COMPREHENSIVE INCOME The accompanying Motos to the Consolidated Financial Statement integral part of this statement (0) 70 34 16 (615) (32) (170) (767) 5 (928) 2,832 104 2,037 5 3,700 $