Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Forecast Nike's fiscal year 2012 balance sheet. Assume no change for: goodwill, notes payable, common stock, capital in excess of stated value and accumulated other

Forecast Nike's fiscal year 2012 balance sheet. Assume no change for: goodwill, notes payable, common stock, capital in excess of stated value and accumulated other comprehensive income.

We forecast Nike using the following forecast assumptions:

Cash/Revenues 9.4%
Accounts receivable/Revenues 15.0%
Inventories/Revenues 13.0%
Deferred income taxes/Revenues 1.5%
Prepaid expenses and other current assets/Revenues 2.8%
L-T deferred income taxes and other assets/Revenues 4.3%
Depreciation expense/Prior-year PPE, net (incl. in overhead) 17.3%
Amortization expense/Prior-year intangible assets, net (incl. in overhead) 4.9%
Accounts payable/Revenues 7.0%
Accrued liabilities/Revenues 9.5%
Income taxes payable/Income taxes 16.5%
Deferred income taxes and other liabilities/Revenues 4.4%
Capital expenditures/Revenues 2.1%
Dividends/Net income 26.0%
Current portion of L/T due in 2013 $48

Instructions: Round answers to the nearest whole number. Do not enter negative signs with answers. Remember to use rounded forecasted revenues with subsequent calculations.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Textbook For Students And Researchers

Authors: Mukhiddin Kalonov

1st Edition

6206174077, 978-6206174073

More Books

Students also viewed these Accounting questions