Question
Calculating Liquidity Ratios Calculating Liquidity Ratios Compute the (1) current ratio and the (2) quick ratio for Nike Inc. using the following excerpt from the
Calculating Liquidity Ratios
Calculating Liquidity Ratios Compute the (1) current ratio and the (2) quick ratio for Nike Inc. using the following excerpt from the balance sheet reported in a recent 10-K of Nike Inc. At May 31 (in millions) Current assets Cash and equivalents Short-term investments Accounts receivable, net Inventories Deferred income taxes $6,934 3,730 6,044 7,807 389 Prepaid expenses and other current assets 1 ,968 Total current assets Current liabilities Current portion of long-term debt Notes payable Accounts payable Accrued liabilities Income taxes payable Total current liabilities Ratio Numerator $26,872 $193 133 3,836 3,951 71 $8,1 84 Denominator 8,184 1. 2. Current ratio $ 26,872 Ratio Numerator Quick ratio $ 24,515 x Denominator 8,184 Result 3.28 Result 3
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