Financial History In millions, except per share data and financial ratios) 2018 2017 2016 2015 2014 Year Ended May 31, Revenues 36,397 S 34,350 $ 32,376 $ 30,601 S 27,799 Gross profit 15,956 15,312 14.971 14,067 12.446 Gross margin 43.8% 44.6% 46.2% 46.0% 44.8% Net income 1,933 4.240 3,760 3,273 2,693 Earnings per common share: Basic 1.19 2.56 2.21 1.90 1.52 Diluted 1.17 2.51 2.16 1.85 1.49 Weighted average common shares outstanding 1,623.8 1,657.8 1,697.9 1,723.5 1,766.7 Diluted weighted average common shares outstanding 1,659.1 1,692.0 1,742.5 1,768.8 1,811.6 Cash dividends declared per common share 0.78 0.70 0.62 0.54 0.47 Cash flow from operations! 4,955 3,846 3.399 4,906 3,158 Price range of common stock: High 73.49 60.33 68.19 52.75 40.13 Low 50.35 49.01 47.25 36,57 29.56 At May 31, Cash and equivalents 4,249 S 3,808 $ 3,138 $ 3,852 $ 2,220 Short-term investments 996 2,371 2,319 2,072 2.922 Inventories 5,261 5,055 4,838 4,337 3,947 Working capital 9,094 10,587 9,667 9,225 8,319 Total assets 22.536 23,259 21,379 21,590 18,579 Long-term debt 3,468 3,471 1,993 1,072 1,191 Capital lease obligations 75 27 15 5 74 Redeemable preferred stock 0.3 0.3 0.3 0.3 0.3 Shareholders' equity 9,812 12,407 12,258 12,707 10,824 Year-end stock price 71.80 52.99 55.22 50.84 38.46 Market capitalization 114,983 87,084 92,867 87,044 66,921 Financial Ratios: Return on equity21 17.4% 34,4% 30.1% 27.8% 24.6% Return on assets(2) 8.4% 19.0% 17.5% 16.3% 14.9% Inventory turns 4.0 3.8 3.8 4.0 4.1 Current ratio at May 31 2.5 2.9 2.8 2.5 2.7 Price/Earnings ratio at May 312 61.4 21.1 25.6 27.5 25.9 1) Prior year amounts have been updated to reflect the adoption of Accounting Standards Update No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. As a result of adoption, the Company reclassified cash inflows of $177 million, $281 million. $218 million and $132 million for the years ended May 31, 2017, 2016, 2015 and 2014, respectively related to excess tax benefits from share-based payment awards, from Cash used by financing activities to Cash provided by operations. Additionally, the Company reclassified cash outflows of $29 million, $22 million, $8 million and $13 million for the years ended May 31, 2017, 2016, 2015 and 2014, respectively, related to tax payments for the net settlement of share-based payment awards, from Cash provided by operations to Cash used by financing activities within the Consolidated Statements of Cash Flows. Refer to Note 1 - Summary of Significant Accounting Policies for additional information. This case requires you to use the financial statements for NIKE, Inc. (NKE), which are presented in Appendix E at the end of the text (Nike's year end is 5/31). DO NOT USE THE COMPANIES THAT WERE ASSIGNED TO YOU AT THE START OF THE SEMESTER for this assignment. The following additional information is available in thousands): Accounts Receivable at May 31, 2015 $3,358 Inventories at May 31, 2015 $4,337 Total assets at May 31, 2015 $21,597 Stockholders' Equity at May 31, 2015 $12,707 USE EXCEL for calculations!!! REFER TO PAGES 710 and 711 for FORMULAS!! Determine the following measures for the fiscal years ended May 31, 2017, and May 31, 2016. Round ratios and percentages to one decimal place. 1(a) Working capital 1(b) Current ratio 1(c) Quick ratio 1(d) Accounts receivable turnover 1(e) Number of days sales in receivables 1(f) Inventory turnover