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Can't figure out times interest earned. Please post steps so I can see how it's done. Thank you! NIKE, INC. Consolidated Statements of Income Year
Can't figure out times interest earned. Please post steps so I can see how it's done. Thank you!
NIKE, INC. Consolidated Statements of Income | |||
---|---|---|---|
Year Ended December 31 (In millions) | 2019 | 2018 | |
Revenues | $39,117 | $36,397 | |
Cost of sales | 21,643 | 20,441 | |
Gross profit | 17,474 | 15,956 | |
Demand creation expense | 3,753 | 3,577 | |
Operating overhead expense | 8,949 | 7,934 | |
Total selling and administrative expense | 12,702 | 11,511 | |
Interest expense (income), net | 49 | 54 | |
Other (income) expense, net | (78) | 66 | |
Income before income taxes | 4,801 | 4,325 | |
Income tax expense | 772 | 2,392 | |
Net income | $ 4,029 | $ 1,933 |
Consolidated Balance Sheets | ||
---|---|---|
May 31 (in millions) | 2019 | 2018 |
Current Assets | ||
Cash and cash equivalents | $ 4,466 | $ 4,249 |
Short-term investments | 197 | 996 |
Accounts receivable, net. | 4,272 | 3,498 |
Inventories | 5,622 | 5,261 |
Prepaid expenses and other current assets | 1,968 | 1,130 |
Total current assets | 16,525 | 15,134 |
Property, plant and equipment, net | 4,744 | 4,454 |
Identifiable intangible assets, net | 283 | 285 |
Goodwill | 154 | 154 |
Deferred income taxes | 2,011 | 2,509 |
Total assets | $23,717 | $22,536 |
Liabilities and stockholders' equity | ||
Current Liabilities | ||
Current portion of long-term debt | $6 | $6 |
Notes payable | 9 | 336 |
Accounts payable | 2,612 | 2,279 |
Accrued pension liabilities | 5,010 | 3,269 |
Income taxes payable | 229 | 150 |
Total current liabilities | 7,866 | 6,040 |
Long-term debt | 3,464 | 3,468 |
Deferred income taxes and other liabilities | 3,347 | 3,216 |
Shareholders equity | ||
Class A convertible315 and 329 shares outstanding | -- | -- |
Class B1,253 and 1,272 shares outstanding | 3 | 3 |
Capital in excess of stated value | 7,163 | 6,384 |
Accumulated other comprehensive income (loss) | 231 | (92) |
Retained earnings | 1,643 | 3,517 |
Total shareholders equity | 9,040 | 9,812 |
Total liabilities and stockholders' equity | $23,717 | $22,536 |
Consolidated Statement of Cash Flows | |||
---|---|---|---|
Year Ended May 31 (in millions) | 2019 | 2018 | |
Cash provided by operations: | |||
Net income | $4,029 | $1,933 | |
Adjustments to reconcile net income to net cash provided by operations: | |||
Depreciation | 705 | 747 | |
Deferred income taxes | 34 | 647 | |
Stock-based compensation | 325 | 218 | |
Amortization and other | 15 | 27 | |
Net foreign currency adjustments | 233 | (99) | |
Changes in certain working capital components and other assets and liabilities: | |||
(Increase) decrease in accounts receivable | (270) | 187 | |
(Increase) decrease in inventories | (490) | (255) | |
(Increase) decrease in prepaid expenses and other current and non-current assets | (203) | 35 | |
Increase (decrease) in accounts payable, accrued liabilities and other current and non-current liabilities | 1,525 | 1,515 | |
Cash provided by operations | 5,903 | 4,955 | |
Cash provided (used) by investing activities: | |||
Purchases of short-term investments | (2,937) | (4,783) | |
Maturities of short-term investments | 1,715 | 3,613 | |
Sales of short-term investments | 2,072 | 2,496 | |
Additions to property, plant and equipment | (1,119) | (1,028) | |
Disposals of property, plant and equipment | 5 | 3 | |
Other investing activities. | -- | (25) | |
Cash provided (used) by investing activities | (264) | 276 | |
Cash used by financing activities: | |||
Long-term debt payments, including current portion | (6) | (6) | |
Increase (decrease) in notes payable | (325) | 13 | |
Payments on capital lease and other financing obligations | (27) | (23) | |
Proceeds from exercise of stock options and other stock issuances | 700 | 733 | |
Repurchase of common stock | (4,286) | (4,254) | |
Dividendscommon and preferred | (1,332) | (1,243) | |
Tax payments for net share settlement of equity awards | (17) | (55) | |
Cash used by financing activities | (5,293) | (4,835) | |
Effect of exchange rate changes on cash and equivalents | (129) | 45 | |
Net increase (decrease) in cash and equivalents | 217 | 441 | |
Cash and equivalents, beginning of year | 4,249 | 3,808 | |
Cash and equivalents, end of year | $4,466 | $4,249 |
(c) Compute times interest earned ratio, cash from operations to total debt ratio, and free operating cash flow to total debt ratios. Note: Round answers to two decimal places. 2019 times interest earned =
2018 times interest earned =
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