Business Course Return to course 35 My Subsc Question 4 Not complete Marked out of 13.00 P Flag question Operating Section of Statement of Cash Flows (Indirect Method) Following are the income statement and balance sheet for Nike Inc. for the year ended May 31, 2019, and a forecasted income statement and balance sheet for 2020 Nike Inc. Income Statement For Year Ended May 31 S millions 2019 actual 2020 Est. Revenues $ 39,117 542,246 Cost of sales 21.643 23.362 Gross profit 17,474 18.884 Demand creation expense 3,753 4,056 Operating overhead expense 8,949 9,674 Total selling and administrative expense 12,702 13,730 Interest expense (income), net 49 49 Other (income) expense, net (78) (78) Income before income taxes 4,801 5.183 Income tax expense 772 1,037 Net income $4,029 $ 4,146 2019 Actual 2020 Est. NIKE INC Balance Sheet May 31 S millions Current Assets Cash and equivalents Short-term inwestments Accounts receivable, net 54,466 197 4.272 $6,881 192 4,605 2 30 2019 Actual 2020 Est. $4,466 $6,881 197 197 NIKE INC. Balance Sheet May 31 $ millions 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 Current liabilities Current portion of long-term debt Notes payable Accounts payable Accrued liabilities Income taxes payable Total current liabilities Long-term debt Deferred income taxes and other liabilities Total liabilities Shareholders' equity. Common stock at stated value Capital in excess of stated value Accumulated other comprehensive income 4,272 4,605 5,622 6,083 1,968 2,112 16,525 $19,878 4,744 5,259 283 281 154 154 2,011 2,155 $ 23,717 $ 27,727 $6 $3 9 0 2.612 5,010 229 7,866 3,464 3,347 14,677 2,830 5,407 253 8,493 3,461 3,633 15,587 3 3 7,163 231 7,488 231 UL Accumulated other comprehensive income Retained earnings Total shareholders uity Total abilities and shareholders equity 231 231 1,643 4418 9,000 12,140 $22,717 $27.727 Prepare the net cash flows from operating activities section of a forecasted statement of cash flows for 2020 using the indirect method. Treat deferred tax assets and liabilities as operating Operating expenses (cost of sales) for 2020 include estimated depreciation expense of 5751 million and amortization expense of $2 million, and stock based compensation of $325 milion. (Hin Stock-based compensation is a noncash expense like depreciation and must be added back in the operating section. The amount expensed is also added to Nikes Capital in excess of stated value' account in the balance sheet.) Use negative signs with answers to show a decrease in cash Nike, Inc STATEMENT OF CASH FLOWS Forecasted For Year Ended May 31, 2020 (5 millions) Net income Depreciation Amortization Stock-based compensation Accounts receivable Inventories Prepaid expenses and other current assets Deferred income taxes and other assets Accounts payable 0 0 0 0 0 0 0 0 0 Accrued abilities 0 Income taxes payable Deferred income taxes and other abilities Net cash from operating activities 0 0 0 5 Check
