2. Calculate and provide both a graphical and trend analysis of all assets as a percentage of total assets.

3. Calculate and provide both a graphical and trend analysis of all debt and O/E as a

percentage of total debt and O/E.

4. Calculate, discuss, and provide both aa graphical and trend analysis of each of the following ratios:

a. current ratio (current assets/current liabilities)

b. gross profit margin (gross profit - COGS/sales) c. inventory turnover (sales/inventory)

d. return on sales (net income/sales)

e return on assets (net income/assets)

f. return on equity (net income/equity_

g. debt (debt/equity)

5. Provide a report on the financial condition of the company for each year.

6. In which year is the companys financial condition the strongest? Explain.

7. In which year is the companys financial condition the weakest? Explain.

NIKE INCOME STATEMENT 2005 (SMil) 1998 1999 2000 2001 2002 2003 2004 2006 2007 Revenue COGS Gross Profit 9,553.10 8,776.90 8,995.10 9,488.80 9,893.00 10,697.00 12,253.10 13,739.70 14,954.90 16,325.90 6,065.50 5,493.50 5,403.80 5,784.90 6,004.70 6,313.60 7,001.40 7,624.30 8,367.90 9,165.40 3,487.60 3,283.40 3,591.30 3,703.90 3,888.30 4,383.40 5,251.70 6,115.40 6,587.00 7,160.50 4,221.70 5,028.70 SG&A Other Operating Income 2,623.80 2,426.60 2,606.40 2,689.70 2,820.40 150.8 66.6 20.7 34.1 3 713 790.2 964.2 980.1 1,064.90 3,137.60 0 1,245.80 3,702.00 0 1,549.70 4,477.80 0 0 0 1,893.70 2,109.20 2,131.80 Net Int Inc & Other -60 -44.1 -45 -58.7 -47.6 37 49.7 24.3 -32.4 -68.1 Earnings Before Taxes Income Taxes 653 253.4 746.1 294.7 919.2 340.1 921.4 1,017.30 331.7 349 1,123.00 382.9 1,450.00 504.4 1,859.80 648.2 2,141.60 749.6 2,199.90 708.4 399.6 451.4 579.1 589.7 668.3 740.1 945.6 1,211.60 1,392.00 1,491.50 Earnings After Taxes Acctg Changes -5 -266.1 Net Income 399.6 451.4 579.1 589.7 663.3 474 945.6 1,211.60 1,392.00 1,491.50 NIKE BALANCE SHEET Assets ($Mil) 1998 1999 2001 2002 2003 2004 2005 2006 2007 2000 254.3 108.6 198.1 304 575.5 634 828 1,388.10 954.2 1,856.70 Cash and Equiv Short-Term Investments 400.8 436.6 1,348.80 990.3 Acots Reo 1674.40 1,556.00 1,569.40 1.621.40 1,807.10 2,101.10 2,120.20 2,395.90 2,494.70 2.262.10 1,811.10 1.396.60 1,199.30 1,424.10 1,373.80 1,514.90 2,076.70 1.446.00 326.7 2,121.90 612.9 311.5 453.2 Inventory Other Current Assets Net PP&E Intangibles Other Long-Term Assets Total Assets 1,265.80 353 1.153.10 435.8 275.9 275.8 1,618.80 397.3 1633.60 529.4 1,586.90 5017 401.3 1,614.50 437.8 1,583.40 410.9 266.2 429.9 1,620.80 183.8 1,605.80 541.5 583.4 1,657.70 536.3 1,678,30 540.7 426.6 290.4 178.2 233 229.4 291 295.2 316.6 392.8 5,397.40 5,247.70 5,856.90 5,819.60 6,443.00 6,713.90 7,891.60 8,793.60 9,869.60 10,688.30 Liabilities and Owner's Equity ($Mil) 2004 2005 2006 2007 Acots Payable 763.8 843.9 952.2 1,040.30 Short-Term Debt 152.6 76 298.7 1313 118.2 109 974.4 1.303.40 Taxes Payable Accrued Liabilities Total Current Liabilities Long-Term Debt Other Long-Term Liabilities 1998 1999 2000 2001 2002 2003 584.6 373.2 543.8 432 504.4 572.7 481.8 420.1 974.3 860.7 480.5 281.1 28.9 0 21.9 83 107.2 608.5 653.6 6219 472.1 768.3 1,054.20 1,703.80 1,446.90 2,140.00 1,786.70 1,836.20 2,015.20 379.4 386.1 470.3 435.9 625.9 5516 52.6 80.1 110.6 102.5 141.9 156.4 2,135.80 1,913.10 2,720.90 2,325.10 2,604.00 2,723.20 3,261.60 3.334.60 3,136.00 3,494.50 3,839.00 3,990.70 5,397.40 5,247.70 5,856.90 5,819.60 6,443.00 6,713.90 2.009.00 682.4 95 85.5 984.3 1,286.90 1,999.20 2,623.30 687.3 410.7 463.2 550.4 2,584.00 409,9 418.5 669.3 Total Liabilities 3,109.90 3,149.70 3,584.40 3,663.20 7,025.10 Owner's Equity Total Liabilities & Ovner's Equity 4,781.70 5,643.90 6,285.20 7,891.60 8,793.60 9,869.60 10,688.30 NIKE INCOME STATEMENT 2005 (SMil) 1998 1999 2000 2001 2002 2003 2004 2006 2007 Revenue COGS Gross Profit 9,553.10 8,776.90 8,995.10 9,488.80 9,893.00 10,697.00 12,253.10 13,739.70 14,954.90 16,325.90 6,065.50 5,493.50 5,403.80 5,784.90 6,004.70 6,313.60 7,001.40 7,624.30 8,367.90 9,165.40 3,487.60 3,283.40 3,591.30 3,703.90 3,888.30 4,383.40 5,251.70 6,115.40 6,587.00 7,160.50 4,221.70 5,028.70 SG&A Other Operating Income 2,623.80 2,426.60 2,606.40 2,689.70 2,820.40 150.8 66.6 20.7 34.1 3 713 790.2 964.2 980.1 1,064.90 3,137.60 0 1,245.80 3,702.00 0 1,549.70 4,477.80 0 0 0 1,893.70 2,109.20 2,131.80 Net Int Inc & Other -60 -44.1 -45 -58.7 -47.6 37 49.7 24.3 -32.4 -68.1 Earnings Before Taxes Income Taxes 653 253.4 746.1 294.7 919.2 340.1 921.4 1,017.30 331.7 349 1,123.00 382.9 1,450.00 504.4 1,859.80 648.2 2,141.60 749.6 2,199.90 708.4 399.6 451.4 579.1 589.7 668.3 740.1 945.6 1,211.60 1,392.00 1,491.50 Earnings After Taxes Acctg Changes -5 -266.1 Net Income 399.6 451.4 579.1 589.7 663.3 474 945.6 1,211.60 1,392.00 1,491.50 NIKE BALANCE SHEET Assets ($Mil) 1998 1999 2001 2002 2003 2004 2005 2006 2007 2000 254.3 108.6 198.1 304 575.5 634 828 1,388.10 954.2 1,856.70 Cash and Equiv Short-Term Investments 400.8 436.6 1,348.80 990.3 Acots Reo 1674.40 1,556.00 1,569.40 1.621.40 1,807.10 2,101.10 2,120.20 2,395.90 2,494.70 2.262.10 1,811.10 1.396.60 1,199.30 1,424.10 1,373.80 1,514.90 2,076.70 1.446.00 326.7 2,121.90 612.9 311.5 453.2 Inventory Other Current Assets Net PP&E Intangibles Other Long-Term Assets Total Assets 1,265.80 353 1.153.10 435.8 275.9 275.8 1,618.80 397.3 1633.60 529.4 1,586.90 5017 401.3 1,614.50 437.8 1,583.40 410.9 266.2 429.9 1,620.80 183.8 1,605.80 541.5 583.4 1,657.70 536.3 1,678,30 540.7 426.6 290.4 178.2 233 229.4 291 295.2 316.6 392.8 5,397.40 5,247.70 5,856.90 5,819.60 6,443.00 6,713.90 7,891.60 8,793.60 9,869.60 10,688.30 Liabilities and Owner's Equity ($Mil) 2004 2005 2006 2007 Acots Payable 763.8 843.9 952.2 1,040.30 Short-Term Debt 152.6 76 298.7 1313 118.2 109 974.4 1.303.40 Taxes Payable Accrued Liabilities Total Current Liabilities Long-Term Debt Other Long-Term Liabilities 1998 1999 2000 2001 2002 2003 584.6 373.2 543.8 432 504.4 572.7 481.8 420.1 974.3 860.7 480.5 281.1 28.9 0 21.9 83 107.2 608.5 653.6 6219 472.1 768.3 1,054.20 1,703.80 1,446.90 2,140.00 1,786.70 1,836.20 2,015.20 379.4 386.1 470.3 435.9 625.9 5516 52.6 80.1 110.6 102.5 141.9 156.4 2,135.80 1,913.10 2,720.90 2,325.10 2,604.00 2,723.20 3,261.60 3.334.60 3,136.00 3,494.50 3,839.00 3,990.70 5,397.40 5,247.70 5,856.90 5,819.60 6,443.00 6,713.90 2.009.00 682.4 95 85.5 984.3 1,286.90 1,999.20 2,623.30 687.3 410.7 463.2 550.4 2,584.00 409,9 418.5 669.3 Total Liabilities 3,109.90 3,149.70 3,584.40 3,663.20 7,025.10 Owner's Equity Total Liabilities & Ovner's Equity 4,781.70 5,643.90 6,285.20 7,891.60 8,793.60 9,869.60 10,688.30