Compute and Interpret Liquidity, Solvency and Coverage Ratios Information from the balance sheet, income statement, and statement of cash flows for Nike follows. Refer to these fina 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 S 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 convertible-315 and 329 shares outstanding Class B-1.253 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 llabilities and stockholders equity $23.717 522,536 2019 2018 $4,029 $1,933 705 747 647 34 325 218 15 27 233 (99) 187 (270) (490) (203) 1,525 (255) 35 1.515 4,955 5,903 Consolidated Statement of Cash Flows Year Ended May 31 (in millions) Cash provided by operations: Net income Adjustments to reconcile net income to net cash provided by operations: Depreciation Deferred income taxes Stock-based compensation Amortization and other Net foreign currency adjustments Changes in certain working capital components and other assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in inventories (Increase) decrease in prepaid expenses and other current and non-current assets Increase (decrease) in accounts payable, accrued liabilities and other current and non-current liabilities Cash provided by operations Cash provided (used) by investing activities: Purchases of short-term investments Maturities of short-term investments Sales of short-term investments Additions to property, plant and equipment Disposals of property, plant and equipment Other investing activities. Cash provided (used) by investing activities Cash used by financing activities: Long-term debt payments, including current portion Increase (decrease) in notes payable Payments on capital lease and other financing obligations Proceeds from exercise of stock options and other stock issuances Repurchase of common stock Dividends-common and preferred tharmant award (2.937) (4.783) 1.715 3,613 2.072 2,496 (1.119) (1.028) 5 3 (25) (264) 276 (6) (325) 13 (27) (23) 700 733 (4.286) (4.254) (1,332) (1.243) (17) (55) vidends-common and preferred ex payments for net share settlement of equity awards ash used by financing activities Effect of exchange rate changes on cash and equivalents et increase (decrease) in cash and equivalents Cash and equivalents, beginning of year Cash and equivalents, end of year (17) (55) (5.293) (4.835) (129) 45 217 441 4,249 3,808 $4,466 $4,249