Compute the following four Cash Flow Performance Ratios for Nike, Inc. for the years ended 5/31/19 and 5/31/18. Show complete computations AND explain what each ratio measures: 1) CFO/Net Revenue 2) CFO/Average Total Assets 3) CFO/Average Shareholders' Equity 4) CFO/Operating Income NIKE, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS YEAR ENDED MAY 31, 2011 2017 4,029 5 1,933 5 4.240 705 747 547 706 (273) 215 325 218 233 (99) (270) (490) (203) 187 (255) (426) (231) (120) 35 1,525 5.903 1.515 4.955 (158) 3,846 (2.937) 1,715 2.072 (1.119) 5 (4.783) 3.6133 2.496 (1.028) (5.928) ,623 2.423 (1.105) Dollar in milions! Cash provided by operations: Net income Adiustments 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: Net proceeds from long-term debt issuance 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 Tax payments for net share settlement of equity awards Cash used by financing activities Effect of exchange rate changes on cash and equivalents Net increase (decrease) in cash and equivalents Cash and equivalents, beginning of year CASH AND EQUIVALENTS, END OF YEAR Supplemental disclosure of cash flow information: Cash paid during the year for: Interest, net of capitalized interest Income taxes Non-cash additions to property, plant and equipment Dividends declared and not paid (25) 276 (1,008) 1,482 (44) (6) 13 (23) 733 (4.254) (1.243) (325) (27) 700 (4.286) (1.332) (17) (5.293) (129) 217 4249 4,466 $ (55) (17) 489 (3.223) (1.133) (29) (2.148) (20) 670 3,138 3,808 (4.835) 45 441 3.808 4,249 $ $ $ 125 S 153 $ 757 160 98 703 529 294 320 347 300 The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement NIKE, INC. CONSOLIDATED BALANCE SHEETS MAY 31, 2019 2018 S (Dollars in millions) ASSETS Current assets: Cash and equivalents Short-term investments Accounts receivable, net Inventories Prepaid expenses and other current assets Total current assets Property, plant and equipment, net Identifiable intangible assets, net Goodwill Deferred income taxes and other assets TOTAL ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long-term debt Notes payable Accounts payable Accrued liabilities Income taxes payable Total current liabilities Long-term debt Deferred income taxes and other liabilities Commitments and contingencies (Note 18) Redeemable preferred stock 4,466 197 4,272 5,622 1,968 16,525 4,744 283 154 2,011 23,717 4,249 996 3,498 5,261 1,130 15,134 4,454 285 154 2.509 22,536 $ 6 S 2,612 5,010 229 7.866 3,464 3.347 336 2.279 3.269 150 6,040 3,468 3.216 Shareholders' equity: Common stock at stated value: 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) Retained earnings Total shareholders' equity TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 7,163 231 1.643 9,040 23,717 6,384 (92) 3,517 9.812 22,536 S $ Compute the following four Cash Flow Performance Ratios for Nike, Inc. for the years ended 5/31/19 and 5/31/18. Show complete computations AND explain what each ratio measures: 1) CFO/Net Revenue 2) CFO/Average Total Assets 3) CFO/Average Shareholders' Equity 4) CFO/Operating Income NIKE, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS YEAR ENDED MAY 31, 2011 2017 4,029 5 1,933 5 4.240 705 747 547 706 (273) 215 325 218 233 (99) (270) (490) (203) 187 (255) (426) (231) (120) 35 1,525 5.903 1.515 4.955 (158) 3,846 (2.937) 1,715 2.072 (1.119) 5 (4.783) 3.6133 2.496 (1.028) (5.928) ,623 2.423 (1.105) Dollar in milions! Cash provided by operations: Net income Adiustments 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: Net proceeds from long-term debt issuance 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 Tax payments for net share settlement of equity awards Cash used by financing activities Effect of exchange rate changes on cash and equivalents Net increase (decrease) in cash and equivalents Cash and equivalents, beginning of year CASH AND EQUIVALENTS, END OF YEAR Supplemental disclosure of cash flow information: Cash paid during the year for: Interest, net of capitalized interest Income taxes Non-cash additions to property, plant and equipment Dividends declared and not paid (25) 276 (1,008) 1,482 (44) (6) 13 (23) 733 (4.254) (1.243) (325) (27) 700 (4.286) (1.332) (17) (5.293) (129) 217 4249 4,466 $ (55) (17) 489 (3.223) (1.133) (29) (2.148) (20) 670 3,138 3,808 (4.835) 45 441 3.808 4,249 $ $ $ 125 S 153 $ 757 160 98 703 529 294 320 347 300 The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement NIKE, INC. CONSOLIDATED BALANCE SHEETS MAY 31, 2019 2018 S (Dollars in millions) ASSETS Current assets: Cash and equivalents Short-term investments Accounts receivable, net Inventories Prepaid expenses and other current assets Total current assets Property, plant and equipment, net Identifiable intangible assets, net Goodwill Deferred income taxes and other assets TOTAL ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long-term debt Notes payable Accounts payable Accrued liabilities Income taxes payable Total current liabilities Long-term debt Deferred income taxes and other liabilities Commitments and contingencies (Note 18) Redeemable preferred stock 4,466 197 4,272 5,622 1,968 16,525 4,744 283 154 2,011 23,717 4,249 996 3,498 5,261 1,130 15,134 4,454 285 154 2.509 22,536 $ 6 S 2,612 5,010 229 7.866 3,464 3.347 336 2.279 3.269 150 6,040 3,468 3.216 Shareholders' equity: Common stock at stated value: 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) Retained earnings Total shareholders' equity TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 7,163 231 1.643 9,040 23,717 6,384 (92) 3,517 9.812 22,536 S $