Hello, there is this financial statement analysis problem for Nike that I need help with if somebody can. It is a pretty tough and long problem and I really need help with how to answer it and what the answer is, because it will be a problem like this on the test which will help me maintain a good grade. I have provided all the information needed to answer the question. Please help me get the answer. Thank you!

C-8 Appendix C Selected Excerpts from Nike Inc, Form 10-K for the Fiscal Year Ended May 31, 2018 NIKE, Inc. Consolidated Statements of Shareholders' Equity Accumulated Other Comprehensive Income 1,246 Retained Earnings s 7.293 $ Total 12.707 680 (3.090) (3.238) (1,053) (1.053) 3 (11) 94 3.760 236 3.760 1928) (928) 318 $ $ 6,899 $ 12.255 625 (3.060) (3249) Common Stock Capital in Class A Class B Excess of Stated (in milions, except per share data) Shares Amount Shares Amount Value Balance at May 31, 2015 355 $ 1,357 s 4,165 $ Stock options exercised 22 680 Conversion to Class B Common Stock (2) 2 Repurchase of Class 8 Common Stock (148) Dividends on common stock (50.62 per share and preferred stock (56.10 per share) Issuance of shares to employees, net of shares withheld for employee taxes 105 Stock-based compensation 236 Net income Other comprehensive income (loss) Balance at May 31, 2016 353 $ 1,329 $ 5,038 $ Stock options exercised 17 525 Conversion to Class B Common Stock 24 Repurchase of Class B Common Stock (60) (189) Dividends on common stock ($0.70 per share) and preferred stock (30.10 per share Issuance of shares to employees, net of shares withheld for employee taxes 121 Stock-based compensation 215 Not income Other comprehensive income (los) Balance at May 31, 2017 329 $ 1,314 $ 3 $ 5,710 Stock options exercised 24 600 Conversion to Class B Common Stock Repurchase of Class 8 Common Stock 170) (254) Dividends on common stock (S0.78 per share and preferred stock (30.10 per share Issuance of shares to employees, net of shares withheld for employee taxes 110 Stock-based compensation 218 Not income Other comprehensive income foss) Redassifications to retained earnings in accordance with ASU 2018-02 Balance at May 31, 2018 329 $ 1,272 $ 6,384 $ The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement. (1.159) (1.159) (13) 4,240 108 215 4 240 (531) 12.407 (531) (213) $ 6,907 $ 600 - - (4.013) (4.267) (1.265) (1.265) (28) 82 218 1,933 1.933 104 104 (17) 3,517 (92) $ $ 9,812 C-7 Appendix C Selected Excerpts from Nike Inc, Form 10-K for the Fiscal Year Ended May 31, 2018 NIKE, Inc. Consolidated Statements of Cash Flows Year Ended May 31, 2017 2018 2016 1,933 s 4.240 S 3.760 747 647 706 (273) 215 649 (80) 236 218 10 13 27 (99) (117) AR 187 (426) (255) 35 1,515 4,056 60 (590) (161) (588) (120) (158) 3,846 3,399 (in millons) Cash provided by operations: Net income Adjustments to reconcile net income to net cash provided by operations: Depreciation Deferred income taxes Stock-based compensation Amortization and other Nat foreign currency ajustments Changes in certain working capital components and other assets and liabilities: Decrease (increase) in accounts receivable (Increase) in inventorios Decrease increase) in prepaid expenses and other current and non-current assets Increase (decrease) in accounts payable, accrued abilities and other current and non-current fiabilities Cash provided by operatione Cash provided (used) by investing activities: Purchases of short-term investments Maturities of short-term investments Sales of short-term investments Investment in reverse repurchase agreementa 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 deot 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 (4,783) 3,613 2,496 (5,928) 3,623 (5,367) 2,924 2,386 2,423 150 (1,1431 11,026) 3 11,1051 13 10 (25) 6 (34) (1,008) 276 (1.034) 1,482 (44) 327 981 (106) (67) (6) 13 (23) 733 (4,254) (1.243) (17) 489 507 (3,223) (1,133) (3,238) (1,022) (1,243) (55) (4,835) (1,133) (29) (2.148) (20) (1,022) (22) (2,974) (105) 45 441 3,808 4,249 670 3,138 3,808 3,852 3,138 $ $ $ 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 The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement 125 $ 98 S 70 529 703 748 294 252 266 300 320 271 C-6 Appendix C Selected Excerpts from Nike Inc., Form 10-K for the Fiscal Year Ended May 31, 2018 NIKE, Inc. Consolidated Balance Sheets May 31. 2018 2017 $ 4,249 996 3,496 5,261 1,130 15,134 4,454 285 3,808 2371 3,677 5,055 1.150 16.061 3.989 283 139 2.787 23 259 154 2.500 22,536 $ 6 $ (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 15) Redeemable preferred stock Shareholders' equity: Common stock at stated value Class A convertible - 329 and 329 shares outstanding Class B - 1.272 and 1,314 shares outstanding Capital in excess of stated value Accumulated other comprehensive loss Retained earnings Total shareholders' equity TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 336 2,279 3.269 6 325 2.048 3.011 84 150 6,040 3,468 3,216 5.474 3.471 1,907 3 6,384 (92) 3,517 5.710 (213) 6.907 12,407 23,259 9,812 22,536 $ C-5 Appendix C Selected Excerpts from Nike Inc, Form 10-K for the Fiscal Year Ended May 31, 2018 NIKE, Inc. Consolidated Statements of Comprehensive Income Year Ended May 31, 2017 2018 2016 1,933 $ 4.240 $ 3,760 16 (In millions) Net income Other comprehensive income (loss), net of tax Change in net foreign currency translation adjustment Change in net gains (losses) on cash flow hedges Change in net gains (losses) on ather Total other comprehensive income foss), net of tax TOTAL COMPREHENSIVE INCOME The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement 76 (515) (32) 34 (176) (757) 5 (928) 2,832 104 (531) 3,709 2,037 $ $ C-4 Appendix C Selected Excerpts from Nike Inc., Form 10-K for the Fiscal Year Ended May 31, 2018 NIKE, Inc. Consolidated Statements of Income 2018 Year Ended May 31, 2017 $ 34.350 $ 38,397 20,441 19,038 15,312 3.341 (In millionis, except per share data) Revenues Cost of sales Gross profit Demand creation expense Operating overhead expense Total seling and administrative expense Interest expense (income), net Other expense (income). net Income before income taxes Income tax expense NET INCOME 7 222 2016 32,376 17.405 14.971 3278 7.191 10.469 19 (140) 4.623 15,956 3,577 7.934 11.511 54 66 10.563 (196) 4.888 4,325 2,392 1,933 646 863 3,760 $ $ 4.240 $ Eamings per common share Basic Diluted 1.19 $ $ 2.56 2.51 $ $ 2.21 2.16 1.17 Dividends declared per common share 0.78 $ 0.70 $ 0.62 The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement