Financial Statement Analysis The financial statements for Nike, Inc., are presented in Appendix C at the end of text. The following additional information in thousands

Financial Statement Analysis The financial statements for Nike, Inc., are presented in Appendix C at the end of text. The following additional information in thousands is available: Accounts receivable at May 31, 2010 $ 3,138 Inventories at May 31, 2010 2,715 Total assets at May 31, 2010 14,998 Stockholders'equity at May 31, 2010 9,843 Instructions 1. Determine the following measures for the fiscal years ended May 31, 2013 (fiscal 2012), and May 31, 2012 (fiscal 2011), rounding to one decimal place. a. Working capital b. Current ratio C. Quick ratio d. Accounts receivable turnover e. Number of days' sales in receivables f. Inventory turnover g. Number of days' sales in inventory h. Ratio of liabilities to stockholders' equity i. Ratio of sales to assets j. Rate earned on total assets, assuming interest expense is $23 million for the year ending May 31, 2013, and $31 million for the year ending May 31, 2012 k. Rate earned on common stockholders' equity 1. Price-earnings ratio, assuming that the market price was $61.66 per share on May 31, 2013, and $53.10 per share on May 31, 2012 m. Percentage relationship of net income to sales What conclusions can be drawn from these analyses? 2. of cor will be financed 2012 $ 23,331 14.279 13,183 10,148 2,607 4,458 7,065 5,035 (15) 3,025 NIKE, Inc. Consolidated Statements of income VERTICAL ANALYSIS (ROUND ALL PERCENTAGES TO ONE DECIMAL PLACE) 2013 Income from continuing operations 25.313 Cost of Sales Gross Profit 11,034 Demand creation expense 2,745 Operating overhead expense Total selling and administrative expense 7,780 Interest (income) expense, net Other Income) expense, net Income before income taxes Income tax expense NET INCOME FROM CONTINUING OPERATIONS NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS NET INCOME 2.485 3,272 808 756 2,269 (46) $ 2,223 2,464 2012 XCHANGE S CHANGE 2013 $ 23,331 13,183 HORIZONTAL ANALYSIS (ROUND ALL PERCENTAGES TO ONE DECIMAL PLACE) 10.148 2.607 4,458 7,065 25,313 14,279 11,034 2,745 5,035 7,780 (3) (15) 3,272 808 2.464 21 2,485 / Income from continuing Operations Revenues Cost of Sales Gross Profit Demand creation expense Operating overhead expense Total selling and administrative expense Interest income) expense, net Other income) expense, net Income before income taxes Income tax expense NET INCOME FROM CONTINUING OPERATIONS NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS NET INCOME / 54 3,025 756 2,269 (46) / $ 2,223 $ Financial Statement Analysis The financial statements for Nike, Inc., are presented in Appendix C at the end of text. The following additional information in thousands is available: Accounts receivable at May 31, 2010 $ 3,138 Inventories at May 31, 2010 2,715 Total assets at May 31, 2010 14,998 Stockholders'equity at May 31, 2010 9,843 Instructions 1. Determine the following measures for the fiscal years ended May 31, 2013 (fiscal 2012), and May 31, 2012 (fiscal 2011), rounding to one decimal place. a. Working capital b. Current ratio C. Quick ratio d. Accounts receivable turnover e. Number of days' sales in receivables f. Inventory turnover g. Number of days' sales in inventory h. Ratio of liabilities to stockholders' equity i. Ratio of sales to assets j. Rate earned on total assets, assuming interest expense is $23 million for the year ending May 31, 2013, and $31 million for the year ending May 31, 2012 k. Rate earned on common stockholders' equity 1. Price-earnings ratio, assuming that the market price was $61.66 per share on May 31, 2013, and $53.10 per share on May 31, 2012 m. Percentage relationship of net income to sales What conclusions can be drawn from these analyses? 2. of cor will be financed 2012 $ 23,331 14.279 13,183 10,148 2,607 4,458 7,065 5,035 (15) 3,025 NIKE, Inc. Consolidated Statements of income VERTICAL ANALYSIS (ROUND ALL PERCENTAGES TO ONE DECIMAL PLACE) 2013 Income from continuing operations 25.313 Cost of Sales Gross Profit 11,034 Demand creation expense 2,745 Operating overhead expense Total selling and administrative expense 7,780 Interest (income) expense, net Other Income) expense, net Income before income taxes Income tax expense NET INCOME FROM CONTINUING OPERATIONS NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS NET INCOME 2.485 3,272 808 756 2,269 (46) $ 2,223 2,464 2012 XCHANGE S CHANGE 2013 $ 23,331 13,183 HORIZONTAL ANALYSIS (ROUND ALL PERCENTAGES TO ONE DECIMAL PLACE) 10.148 2.607 4,458 7,065 25,313 14,279 11,034 2,745 5,035 7,780 (3) (15) 3,272 808 2.464 21 2,485 / Income from continuing Operations Revenues Cost of Sales Gross Profit Demand creation expense Operating overhead expense Total selling and administrative expense Interest income) expense, net Other income) expense, net Income before income taxes Income tax expense NET INCOME FROM CONTINUING OPERATIONS NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS NET INCOME / 54 3,025 756 2,269 (46) / $ 2,223 $