ACCTG 231 - FALL 2021 --------------------- RATIO ASSIGNMENT : ........................ DUE FRIDAY, DECEMBER 10TH (14 Points - 1 point per account) ------------------- NIKE's 2021 Dividend 1.10 From the Company Financial Statements of NIKE, identify the following items and input amounts into the shaded cells. If NIKE does not have an account requested put 0 (zero). Balance Sheet heet (2021 amounts only) Balance Sheet (2021 and 2020 amounts) : Income Statement (2021 only) Cash* 2021 : 2020 Sales** Accounts Receivable Inventory Cost of Goods Sold** Marketable Securities Total Stockholders' Equity Interest Expense Total Current Assets Income Tax Expense Total Current Liabilities Net Income Total Liabilities Basic Earnings per share --------------------- ...! ---------- Compute the following ratios (please input into shaded cell) Display answer to two decimal places. (11 points, as indicated) Liquidity Current Ratio -------- Acid Test (1 point) (1 point) Asset Management Average Inventory Sale period (2 points) Debt Management : Debt to equity Times Interest Earned (1 point) :(2 points) Profitability Return on Equity Net Profit Margin -------------- (2 points) (1 point) Market Performance Dividend Payout : (1 point) MAY 31, 2021 2020 9,889 $ 3,587 4,463 6,854 1,498 (In millions) ASSETS Current assets: Cash and equivalents Short-term investments Short Accounts receivable, net Tutorid 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 26,291 4,904 3,113 269 242 2.921 37,740 $ 8,348 439 2,749 7,367 1,653 20,556 4,866 3,097 274 223 2,326 31,342 $ $ - $ 2,836 467 6,063 248 2,248 445 5,184 156 8,284 9,406 2,913 2,684 306 9,674 9,413 2,931 2,955 Long-term debt Common stock at Operating lease liabilities Deferred income taxes and other liabilities Commitments and contingencies (Note 18) Redeemable preferred stock Shareholders' equity: Common stated value: convertible -- 305 and 315 shares outstanding B-1,273 and 1,243 shares outstanding Capital in excess of stated value Accumulated other comprehensive income (loss) Retained earnings (deficit) Total shareholders' equity TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY Class B 3 9,965 (380) 3,179 12,767 37,740 $ 8,299 (56) (191) 8,055 31,342 $ role of Contents 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 YEAR ENDED MAY 31, 2021 2020 44,538 $ 37,403 $ 24,576 21,162 19,962 16,241 3,114 3,592 9,911 9,534 13,025 13.126 262 89 14 139 6,661 2,887 934 348 5,727 $ 2,539 $ 2019 39,117 21,643 17,474 3,753 8,949 12.702 49 (78) ) 4,801 772 4,029 $ $ $ 3,64 $ 3.56 $ 1.63 $ 1,60 S 2.55 2.49 1,573.0 1,609,4 1,558.8 1,591.6 1,579.7 1,618.4 The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement. 2021 FORM 10-K 57 . Find the financial statement amounts requested and enter them into the Excel spreadsheet template (NOTE: an amount for dividends has already been entered in the data section of the spreadsheet). (14 points) Compute the ratios requested in the Excel template. (11 points) . A couple of notes: The financial statements uploaded to Canvas for this assignment are not necessarily the most recent for each company, as years were explicitly chosen to insure a positive net income and existence of a few key items. . Also, ratios presented online may differ from those you compute as websites may adjust formulas and/or omit items from some calculations (i.e. some ratios have a few variations with regard to alternative calculations). a Points for this assignment will be based on: Using amounts from the specific financial statements provided Computing ratios using the specific formulas in Chapter 14 (a summary of the Chapter 14 formulas is in Exhibit 14-6 in the text) - present all computations to two decimal places. . ACCTG 231 - FALL 2021 --------------------- RATIO ASSIGNMENT : ........................ DUE FRIDAY, DECEMBER 10TH (14 Points - 1 point per account) ------------------- NIKE's 2021 Dividend 1.10 From the Company Financial Statements of NIKE, identify the following items and input amounts into the shaded cells. If NIKE does not have an account requested put 0 (zero). Balance Sheet heet (2021 amounts only) Balance Sheet (2021 and 2020 amounts) : Income Statement (2021 only) Cash* 2021 : 2020 Sales** Accounts Receivable Inventory Cost of Goods Sold** Marketable Securities Total Stockholders' Equity Interest Expense Total Current Assets Income Tax Expense Total Current Liabilities Net Income Total Liabilities Basic Earnings per share --------------------- ...! ---------- Compute the following ratios (please input into shaded cell) Display answer to two decimal places. (11 points, as indicated) Liquidity Current Ratio -------- Acid Test (1 point) (1 point) Asset Management Average Inventory Sale period (2 points) Debt Management : Debt to equity Times Interest Earned (1 point) :(2 points) Profitability Return on Equity Net Profit Margin -------------- (2 points) (1 point) Market Performance Dividend Payout : (1 point) MAY 31, 2021 2020 9,889 $ 3,587 4,463 6,854 1,498 (In millions) ASSETS Current assets: Cash and equivalents Short-term investments Short Accounts receivable, net Tutorid 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 26,291 4,904 3,113 269 242 2.921 37,740 $ 8,348 439 2,749 7,367 1,653 20,556 4,866 3,097 274 223 2,326 31,342 $ $ - $ 2,836 467 6,063 248 2,248 445 5,184 156 8,284 9,406 2,913 2,684 306 9,674 9,413 2,931 2,955 Long-term debt Common stock at Operating lease liabilities Deferred income taxes and other liabilities Commitments and contingencies (Note 18) Redeemable preferred stock Shareholders' equity: Common stated value: convertible -- 305 and 315 shares outstanding B-1,273 and 1,243 shares outstanding Capital in excess of stated value Accumulated other comprehensive income (loss) Retained earnings (deficit) Total shareholders' equity TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY Class B 3 9,965 (380) 3,179 12,767 37,740 $ 8,299 (56) (191) 8,055 31,342 $ role of Contents 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 YEAR ENDED MAY 31, 2021 2020 44,538 $ 37,403 $ 24,576 21,162 19,962 16,241 3,114 3,592 9,911 9,534 13,025 13.126 262 89 14 139 6,661 2,887 934 348 5,727 $ 2,539 $ 2019 39,117 21,643 17,474 3,753 8,949 12.702 49 (78) ) 4,801 772 4,029 $ $ $ 3,64 $ 3.56 $ 1.63 $ 1,60 S 2.55 2.49 1,573.0 1,609,4 1,558.8 1,591.6 1,579.7 1,618.4 The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement. 2021 FORM 10-K 57 . Find the financial statement amounts requested and enter them into the Excel spreadsheet template (NOTE: an amount for dividends has already been entered in the data section of the spreadsheet). (14 points) Compute the ratios requested in the Excel template. (11 points) . A couple of notes: The financial statements uploaded to Canvas for this assignment are not necessarily the most recent for each company, as years were explicitly chosen to insure a positive net income and existence of a few key items. . Also, ratios presented online may differ from those you compute as websites may adjust formulas and/or omit items from some calculations (i.e. some ratios have a few variations with regard to alternative calculations). a Points for this assignment will be based on: Using amounts from the specific financial statements provided Computing ratios using the specific formulas in Chapter 14 (a summary of the Chapter 14 formulas is in Exhibit 14-6 in the text) - present all computations to two decimal places