• 1-40 Analysis of Transactions Nike, Inc had the following condensed balance sheet on May 31, 2011 ($ in millions): Assets Liabilities and Stockholders' Equity Cash $1,955 Total Liabilities $ 5,155 Inventories 2, 715 Stockholders’s equity 9,843 Property, plant, and equipment 2,115 Total Liabilities and Stockholders’ equity $14,998 Other assets 8, 213 Total assets $14,998 Suppose the following transactions occurred during the first 3 days of June ($in millions): 1. Nike acquired inventories for cash $28 2. Nike acquired inventories on open account (purchases on credit), $19 3. Nike returned for full credit, $4, some unsatisfactory shoes that it acquired on open account in May. 4. Nike acquired $14 of equipment for a cash down payment of $5, plus a 2-year promissory note of $9. 5. To encourage wider displays, Nke sold special store equipment to New York area stores for $40 cash. The equipment had cost $40 in the proceeding month. 6. Clint Eastwood produced, directed, starred in a movie. As a favor to a Nike executive, he agreed to display Nike shoes in a basketball scene. Nike paid no fee. 7. Nike disbursed cash to reduce accounts payable, $16. 8. Nike borrowed cash from a bank, $50. 9. Nike sold additional common stock for cash to new investors, $90. 10. The president of the company sold 5,000 shares of his personal holdings of NIke stock through his stockbroker.