Forecasting with the Parsimonious Method and Estimating Share Value Using the ROPI Model Following are income statements and balance sheets for Nike Inc. b. Compute net operating profit after tax (NOPAT) for 2019 assuming a federal and state statutory tax rate of 22%. Note: Round your answer to the nearest whole dollar. NOPAT: $ c. Use the parsimonious forecast method, as shown in the Analysis Insight box on page 14-5, to forecast sales, NOPAT, and NOA for 2020 through 2023 using the following assumptions. Forecast the terminal period value assuming a 2% terminal period growth and using the NOPM and NOAT assumptions above. Note: Round your final answers to the nearest whole dollar. Note: Round your final answer to two decimal places (for example, round $15.555 to $15.56 ). Stock price per share: $ e. Nike's stock closed at $86.70 on July 23,2019 , the date the Form 10K was filed with the SEC. How does your valuation estimate compare with this closing price? \begin{tabular}{|c|c|c|} \hline \$ millions & May31,2019 & May31,2018 \\ \hline \multicolumn{3}{|l|}{ Current assets } \\ \hline Cash and equivalents & $4,466 & $4,249 \\ \hline Short-term investments & 197 & 996 \\ \hline Accounts receivable, net & 4,272 & 3,498 \\ \hline Inventories & 5,622 & 5,261 \\ \hline Prepaid expenses and other current assets & 1,968 & 1,130 \\ \hline Total current assets & 16,525 & 15,134 \\ \hline Property, plant and equipment, net & 4,744 & 4,454 \\ \hline Identifiable intangible assets, net & 283 & 285 \\ \hline Goodwill & 154 & 154 \\ \hline Deferred income taxes and other assets & 2,011 & 2,509 \\ \hline Total assets & $23,717 & $22,536 \\ \hline \multicolumn{3}{|l|}{ Current liabilities } \\ \hline Current portion of long-term debt & $6 & $6 \\ \hline Notes payable & 9 & 336 \\ \hline Accounts payable & 2,612 & 2,279 \\ \hline Accrued liabilities & 5,010 & 3,269 \\ \hline Income taxes payable & 229 & 150 \\ \hline Total current liabilities & 7,866 & 6,040 \\ \hline Long-term debt & 3,464 & 3,468 \\ \hline Deferred income taxes and other liabilities & 3,347 & 3,216 \\ \hline \multicolumn{3}{|l|}{ Commitments and contingencies (Note 18) } \\ \hline \multicolumn{3}{|l|}{ Shareholders' equity } \\ \hline \multicolumn{3}{|l|}{ Common stock at stated value: } \\ \hline Class A convertible- 315 and 329 shares outstanding & - & - \\ \hline Class B-1,253 and 1,272 shares outstanding & 3 & 3 \\ \hline Capital in excess of stated value & 7,163 & 6,384 \\ \hline Accumulated other comprehensive income (loss) & 231 & (92) \\ \hline Retained earnings & 1,643 & 3,517 \\ \hline Total shareholders' equity & 9,040 & 9,812 \\ \hline Total liabilities and shareholders' equity & $23,717 & $22,536 \\ \hline \end{tabular} Forecasting with the Parsimonious Method and Estimating Share Value Using the ROPI Model Following are income statements and balance sheets for Nike Inc. b. Compute net operating profit after tax (NOPAT) for 2019 assuming a federal and state statutory tax rate of 22%. Note: Round your answer to the nearest whole dollar. NOPAT: $ c. Use the parsimonious forecast method, as shown in the Analysis Insight box on page 14-5, to forecast sales, NOPAT, and NOA for 2020 through 2023 using the following assumptions. Forecast the terminal period value assuming a 2% terminal period growth and using the NOPM and NOAT assumptions above. Note: Round your final answers to the nearest whole dollar. Note: Round your final answer to two decimal places (for example, round $15.555 to $15.56 ). Stock price per share: $ e. Nike's stock closed at $86.70 on July 23,2019 , the date the Form 10K was filed with the SEC. How does your valuation estimate compare with this closing price? \begin{tabular}{|c|c|c|} \hline \$ millions & May31,2019 & May31,2018 \\ \hline \multicolumn{3}{|l|}{ Current assets } \\ \hline Cash and equivalents & $4,466 & $4,249 \\ \hline Short-term investments & 197 & 996 \\ \hline Accounts receivable, net & 4,272 & 3,498 \\ \hline Inventories & 5,622 & 5,261 \\ \hline Prepaid expenses and other current assets & 1,968 & 1,130 \\ \hline Total current assets & 16,525 & 15,134 \\ \hline Property, plant and equipment, net & 4,744 & 4,454 \\ \hline Identifiable intangible assets, net & 283 & 285 \\ \hline Goodwill & 154 & 154 \\ \hline Deferred income taxes and other assets & 2,011 & 2,509 \\ \hline Total assets & $23,717 & $22,536 \\ \hline \multicolumn{3}{|l|}{ Current liabilities } \\ \hline Current portion of long-term debt & $6 & $6 \\ \hline Notes payable & 9 & 336 \\ \hline Accounts payable & 2,612 & 2,279 \\ \hline Accrued liabilities & 5,010 & 3,269 \\ \hline Income taxes payable & 229 & 150 \\ \hline Total current liabilities & 7,866 & 6,040 \\ \hline Long-term debt & 3,464 & 3,468 \\ \hline Deferred income taxes and other liabilities & 3,347 & 3,216 \\ \hline \multicolumn{3}{|l|}{ Commitments and contingencies (Note 18) } \\ \hline \multicolumn{3}{|l|}{ Shareholders' equity } \\ \hline \multicolumn{3}{|l|}{ Common stock at stated value: } \\ \hline Class A convertible- 315 and 329 shares outstanding & - & - \\ \hline Class B-1,253 and 1,272 shares outstanding & 3 & 3 \\ \hline Capital in excess of stated value & 7,163 & 6,384 \\ \hline Accumulated other comprehensive income (loss) & 231 & (92) \\ \hline Retained earnings & 1,643 & 3,517 \\ \hline Total shareholders' equity & 9,040 & 9,812 \\ \hline Total liabilities and shareholders' equity & $23,717 & $22,536 \\ \hline \end{tabular}