4. Excerpts from Nike's financial statements (for the year ended May 31, 2019) are listed on the following pages. Use the information presented by Nike to prepare a summary journal entry of for the firm's disposals for the year ended May 31, 2019 relating to property, plant and equipment. Assume Nike made no non-cash investing transactions relating to property, plant and equipment. Also assume Nike made no impairments relating to property, plant and equipment. (2 points) NIKE, INC. CONSOLIDATED BALANCE SHEETS MAY 31, 2019 2018 $ (Dollars 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 Identifiable intangible assets, net Goodwill Deferred income taxes and other assets TOTAL ASSETS 4.466 S 197 4,272 5,622 1,968 16,525 4,744 283 154 2,011 23.717 $ 4.249 996 3.498 5.261 1,130 15,134 4,454 285 154 2.509 22,536 $ NOTE 3 PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment net included the following: $ (Dollars in millions Land and improvements Buildings Machinery, equipment and internal-use software Leasehold improvements Construction in process Total property, plant and equipment, gross Less accumulated depreciation TOTAL PROPERTY, PLANT AND EQUIPMENT, NET AS OF MAY 31, 2019 2018 329 $ 331 2,445 2,195 4.335 4,230 1,563 1,494 797 641 9.469 8,891 4,725 4,437 4,744 $ 4,454 $ Capitalized interest was not material for the years ended May 31, 2019, 2018 and 2017 NIKE, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS YEAR ENDED MAY 31, 2010 2019 2017 $ 4,029 $ 1.933 S 4.240 747 647 705 34 325 15 233 218 27 (99) 706 (273) 215 10 (117) 187 (Doliars in millions Cash provided by operations: Net Income Adjustments to reconcile net income to net cash provided by operations Depreciation Deferred income taxes Stock-based compensation Amortization 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 (Increase) decrease in prepaid expenses and other current and non-current assets Increase (decrease) in accounts payable, accrued liabilities and other current and non-current liabilities Cash provided by operations Cash provided (used) by investing activities: Purchases of short-term investments Maturities of short-term investments Sales of short-term investments Additions to property, plant and equipment Disposals of property, plant and equipment Other investing activities Cash provided (used) by investing activities (270) (490) (203) (255) 35 (426 (231 (120) 1,525 5.903 1.515 4.955 (158) 3.846 (2.937) 1,715 2.072 (1.119) 5 (4.783 3,613 2.496 (1.028) 3 (25) 276 (5,928 3.623 2.423 (1.105) 13 (34) (1,008) (264) 1.482 327 Cash used by financing activities: Net proceeds from long-term debt issuance Long-term debt payments, including current portion Increase (decrease) in notes payable Payments on capital lease and other financing obligations Proceeds from exercise of stock options and other stock issuances Repurchase of common stock Dividends - common and preferred Tax payments for net share settlement of equity awards Cash 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 (6) (325 (27) 700 (4,286) (1.332) (17) (5.293) (129) 217 4.249 4,466 (6) 13 (23) 733 (4.254 (1.243) (55) (4 835) 45 441 3.808 249 $ 489 (3.223) (1,133) (29) (2.148) (20) 670 3,138 3,808 $
