c. Use the parsimonious forecast method, as shown in the Analysis Insight box on page 14-5, to forecast sales, NOPAT, and NOA for 2020 through 2023 using the following assumptions.

Sales growth	8%
Net operating profit margin (NOPM)	2019 ratios rounded to three decimal places
Net operating asset turnover (NOAT), year-end	2019 ratios rounded to three decimal places

Forecast the terminal period value assuming a 2% terminal period growth and using the NOPM and NOAT assumptions above. Note: Round your final answers to the nearest whole dollar.

d. Estimate the value of a share of Nikes common stock using the residual operating income (ROPI) model as of May 31, 2019; assume a discount rate (WACC) of 6.8% and common shares outstanding of 1,682 million. Note: Round your final answer to two decimal places (for example, round $15.555 to $15.56). Stock price per share: $Answer

Forecasting with the Parsimonious Method and Estimating Share Value Following are income statements and balance sheets for Nike Inc. NIKE INC. Consolidated Income Statements May 31, May 31, 2019 2018 For Year Ended ($ millions) Revenues $39.117 536,397 Cost of sales 21.643 20,441 Gross profit 17474 15.956 Demand creation expense 3.753 3,577 8.949 12.702 11,511 Operating overhead expense Toral selling and administrative expense Interest expense (income), net Other (income) expense, net 178) Income before income taxes 4325 Income tax expense 51.933 Nerincone NIKE INC. Consolidated Balance Sheets May 31, May 31, 2019 2018 S millions Current assets Cash and equivalents $4.466 $4,719 Short-term investments 197 Accounts receivable, net 4,272 3,498 Inventories 5,261 5,622 1,968 Prepaid expenses and other current assets 1.130 Total current assets 16,525 15,134 4,744 4,454 Property. plant and equipment, net Identifiable intangible assets, net Goodwill 283 285 154 154 Deferred income taxes and other assets 2,011 2,509 Total assets $23,717 $22,536 Current liabilities $6 $6 Current portion of long-term debt Notes payable Accounts payable 9 336 2,612 2.279 Accrued liabilities 5,010 3,269 229 150 7.866 6.040 Income taxes payable Total current liabilities Long-term debt Deferred income taxes and other liabilities 3,464 3.468 3.347 3.216 Commitments and contingencies (Note 18) Shareholders equity Common stock at stated value: 3 3 Class A convertible-315 and 329 shares outstanding Class B-1.253 and 1,272 shares outstanding Capital in excess of stated value Accumulated other comprehensive income (loss) 7.163 6.384 231 Retained earnings 1.643 3.512 Total shareholders equity 9.040 9.812 Total liabilities and shareholders equity $28.717 522.536 dollar. Nike (NKE) Forecast Horizon Reported 2019 ($ millions) 2020 2021 2022 Terminal Period 2023 Sales $ Ox $ OXS 0 x $ 0 x $ 0 x 5 0 x NOPAT 0 x 0 X 0 x NOA 0 x 0 x 0 x 0 x Forecasting with the Parsimonious Method and Estimating Share Value Following are income statements and balance sheets for Nike Inc. NIKE INC. Consolidated Income Statements May 31, May 31, 2019 2018 For Year Ended ($ millions) Revenues $39.117 536,397 Cost of sales 21.643 20,441 Gross profit 17474 15.956 Demand creation expense 3.753 3,577 8.949 12.702 11,511 Operating overhead expense Toral selling and administrative expense Interest expense (income), net Other (income) expense, net 178) Income before income taxes 4325 Income tax expense 51.933 Nerincone NIKE INC. Consolidated Balance Sheets May 31, May 31, 2019 2018 S millions Current assets Cash and equivalents $4.466 $4,719 Short-term investments 197 Accounts receivable, net 4,272 3,498 Inventories 5,261 5,622 1,968 Prepaid expenses and other current assets 1.130 Total current assets 16,525 15,134 4,744 4,454 Property. plant and equipment, net Identifiable intangible assets, net Goodwill 283 285 154 154 Deferred income taxes and other assets 2,011 2,509 Total assets $23,717 $22,536 Current liabilities $6 $6 Current portion of long-term debt Notes payable Accounts payable 9 336 2,612 2.279 Accrued liabilities 5,010 3,269 229 150 7.866 6.040 Income taxes payable Total current liabilities Long-term debt Deferred income taxes and other liabilities 3,464 3.468 3.347 3.216 Commitments and contingencies (Note 18) Shareholders equity Common stock at stated value: 3 3 Class A convertible-315 and 329 shares outstanding Class B-1.253 and 1,272 shares outstanding Capital in excess of stated value Accumulated other comprehensive income (loss) 7.163 6.384 231 Retained earnings 1.643 3.512 Total shareholders equity 9.040 9.812 Total liabilities and shareholders equity $28.717 522.536 dollar. Nike (NKE) Forecast Horizon Reported 2019 ($ millions) 2020 2021 2022 Terminal Period 2023 Sales $ Ox $ OXS 0 x $ 0 x $ 0 x 5 0 x NOPAT 0 x 0 X 0 x NOA 0 x 0 x 0 x 0 x