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Compute and Interpret the Z-score Information from the balance sheet, income statement, and statement of cash flows for Nike follows. Refer to these financial
Compute and Interpret the Z-score Information from the balance sheet, income statement, and statement of cash flows for Nike follows. Refer to these financial statements to answer the requirements. Note: Complete the entire question in Excel and format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places. NIKE INC. Consolidated Income Statements For Year Ended ($ millions) Revenues Cost of sales May 31, May 31, 2019 2018 $41,117 $38,397 21,643 20,441 Gross profit 19,474 17,956 Demand creation expense 5,753 5,577 Operating overhead expense 10,949 9,934 Total selling and administrative expense 16,702 11,511 Interest expense (income), net 49 54 Other (income) expense, net (78) 66 Income before income taxes 2,801 6,325 Income tax expense 772 2,392 Net income $2,029 $3,933 NIKE INC. Consolidated Balance Sheets $ millions (except share price) May May 31, 31, 2019 2018 Current assets Cash and equivalents $4,466 $4,249 Short-term investments 197 996 Accounts receivable, net 4,272 3,498 Inventories 7,622 7,261 Prepaid expenses and other current assets 1,968 1,130 Total current assets 18,525 17,134 Property, plant and equipment, net 4,744 4,454 Identifiable intangible assets, net 283 285 Goodwill 154 154 Deferred income taxes and other assets 2,011 2,509 Total assets $25,717 $24,536 Current liabilities Current portion of long-term debt Notes payable Accounts payable Accrued liabilities $6 $6 9 336 2,612 2,279 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 Common stock at stated value: Class A convertible-315 and 329 shares outstanding 0 0 Capital in excess of stated value Class B-1,253 and 1,272 shares outstanding Accumulated other comprehensive income (loss) 3 3 9,163 8,384 231 (92) Retained earnings Total shareholders' equity Total liabilities and shareholders' equity Shares outstanding Company's closing stock price per share 1,643 3,517 11,040 11,812 $25,717 $24,536 1,253 1,272 $77.14 $71.80 (a) Compute and compare the Altman Z-scores for both years. Year 2018 2019 Z-score 4.81 x 5.4 x
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