inancial Statement Analysis The financial statements for Nike, Inc., are available at the Appendix C link above. The following additional information (in millions) is available: Accounts receivable at May 31, 2011: $3,138 Inventories at May 31, 2011: 2,715 Total assets at May 31, 2011: 14,998 Stockholders' equity at May 31, 2011: 9,843 Determine the following measures for the fiscal y 2012 (fiscal 2011). Do not round interim calculations. Round the working capital amount in pa the nearest dollar. Round all other final answers to one decimal place. When required, use the rounded final answers in subsequent computations Fiscal Year Fiscal 201 2012 a. Working capital (in millions) 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 days days ending May 31, 2013, and $31 million for the year ending May 31, 2012 Rate earned on stockholders' equity 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 k. I. m. Percentage relationship of net income to sales Portand, Oregon July 23, 2013 NIKE, Inc. Consolidated StatementsOflncome Year Ended May 31 2012 2013 Income from continuing operations 25,313 $23,331 S 20.117 14,279 11,034 2,745 5,035 7,780 10,915 9,202 13,183 10.148 2.6072.344 4.458 7,065 Cost of sales Gross proft Demand creation expense 4.017 6.361 overhead expense Total selling and administrative expense Interest (income) expense, net (Notes 6, 7 and 8) Other (income) expense, net (Note 17) Income before income taxes Income tax expense (Note 9) 54 (25) (15) 3,272 808 2,464 2,862 690 2,172 3,025 756 NETINCOME FROM CONTINUING OPERATIONS NETINCOME (LOSS) FROM DISCONTINUED OPERATIONS 2,269 21 2.485 S (46) 2,223 $ 2.133 NETINCOME Eamings per share from continuing operations: 2.75$ 269 $ 247 S 242 $ Basic earnings per common share (Notes 1 and 12) Diluted earmings per common share (Notes 1 and 12) 224 Eamings per share from discontnued operations: 0.02$(0.05) S0.04) 002 0.05) 0.04) 0.60 Basic earnings per common share (Notes 1 and 12) Diluted earnings per common share (Notes 1 and 12) Dividends declared per common share The accompanying notes to consolidated Inancial statements ave an integral pert of this statement 0.70 $ 081 S 42 NIKE, Inc. Consolidated Statements of Comprehensive Income Year Ended May 31 Portand, Oregon July 23, 2013 NIKE, Inc. Consolidated StatementsOflncome Year Ended May 31 2012 2013 Income from continuing operations 25,313 $23,331 S 20.117 14,279 11,034 2,745 5,035 7,780 10,915 9,202 13,183 10.148 2.6072.344 4.458 7,065 Cost of sales Gross proft Demand creation expense 4.017 6.361 overhead expense Total selling and administrative expense Interest (income) expense, net (Notes 6, 7 and 8) Other (income) expense, net (Note 17) Income before income taxes Income tax expense (Note 9) 54 (25) (15) 3,272 808 2,464 2,862 690 2,172 3,025 756 NETINCOME FROM CONTINUING OPERATIONS NETINCOME (LOSS) FROM DISCONTINUED OPERATIONS 2,269 21 2.485 S (46) 2,223 $ 2.133 NETINCOME Eamings per share from continuing operations: 2.75$ 269 $ 247 S 242 $ Basic earnings per common share (Notes 1 and 12) Diluted earmings per common share (Notes 1 and 12) 224 Eamings per share from discontnued operations: 0.02$(0.05) S0.04) 002 0.05) 0.04) 0.60 Basic earnings per common share (Notes 1 and 12) Diluted earnings per common share (Notes 1 and 12) Dividends declared per common share The accompanying notes to consolidated Inancial statements ave an integral pert of this statement 0.70 $ 081 S 42 NIKE, Inc. Consolidated Statements of Comprehensive Income Year Ended May 31 NIKE, Inc. Consolidated Statements of Shareholders' Equity Capital in Excess of Accumulated Other Class A Stated Comprehensive Retained (In millions except per share data Balance at May 31, 2010 Stock optons exercised Repurchase of Class B Common Stock Dividends on Common stock ($0.60 per Shares Amount Shares Amount VlHED Eanine-Total- 18078833,441 218 6,095 9,754 368 (1,857) (1,871) (569) (569) 368 (14) (48) Issuance of shares to employees Stock-based compensation (Note 11) Fordeiture of shares from employees Net income Osher Comprehensive income Balance at May 31, 2011 Stock options exercised Repurchase of Class B Common Stock Dividends on Common stock ($0.70 per share) Issuance of shares to employees Stock-based compensation (Note 11) Forfeiture of shares from employees Net income Other comprehensive income Balance at May 31, 2012 Stock options exeroised Conversion to Class B Common Stock Repurchase of Class B Common Stock Dividends on Common stock (30.81 per 105 105 2.133 2,133 1807565 3 5 3.944 95$ 6,801 9,843 18 (40) (12) (1,793) (1.805) (639 (639) 130 130 (4) (10) 2,223 2,223 54 149 $ 5,588 $10,381 322 54 180 76$3$ 4641 10 (10) 1,647) (1.657) Issuance of shares to employees 65 174 174 (4)(12 Forfeiture of shares from employees Net income Other comprehensive inoome Balance at Mary 31, 2013 178 $716 3 $ 5,184 $ 274 5 5.695 $ 11.156 The accompanyling notes to consolidated financial stalements are an indegral pert of this stemen 46 NOTE1--Summary0fSignificantAccountingPolicies Description of Business NIKE, Ihc is a worldwide leader in the design, development and worldwide marketing and selling of athletic foctwear, apparet, equipment ecessores ard services yoned NDE Ine subsidaries ndude Converse he, which designs, malat, and dstbles oascal oohwear, apparel and accessories and Hurley Intemational LLC, which designs, markets and distributes action sports and youth estyle NIKE, Inc. Consolidated Statements of Shareholders' Equity Capital in Excess of Accumulated Other Class A Stated Comprehensive Retained (In millions except per share data Balance at May 31, 2010 Stock optons exercised Repurchase of Class B Common Stock Dividends on Common stock ($0.60 per Shares Amount Shares Amount VlHED Eanine-Total- 18078833,441 218 6,095 9,754 368 (1,857) (1,871) (569) (569) 368 (14) (48) Issuance of shares to employees Stock-based compensation (Note 11) Fordeiture of shares from employees Net income Osher Comprehensive income Balance at May 31, 2011 Stock options exercised Repurchase of Class B Common Stock Dividends on Common stock ($0.70 per share) Issuance of shares to employees Stock-based compensation (Note 11) Forfeiture of shares from employees Net income Other comprehensive income Balance at May 31, 2012 Stock options exeroised Conversion to Class B Common Stock Repurchase of Class B Common Stock Dividends on Common stock (30.81 per 105 105 2.133 2,133 1807565 3 5 3.944 95$ 6,801 9,843 18 (40) (12) (1,793) (1.805) (639 (639) 130 130 (4) (10) 2,223 2,223 54 149 $ 5,588 $10,381 322 54 180 76$3$ 4641 10 (10) 1,647) (1.657) Issuance of shares to employees 65 174 174 (4)(12 Forfeiture of shares from employees Net income Other comprehensive inoome Balance at Mary 31, 2013 178 $716 3 $ 5,184 $ 274 5 5.695 $ 11.156 The accompanyling notes to consolidated financial stalements are an indegral pert of this stemen 46 NOTE1--Summary0fSignificantAccountingPolicies Description of Business NIKE, Ihc is a worldwide leader in the design, development and worldwide marketing and selling of athletic foctwear, apparet, equipment ecessores ard services yoned NDE Ine subsidaries ndude Converse he, which designs, malat, and dstbles oascal oohwear, apparel and accessories and Hurley Intemational LLC, which designs, markets and distributes action sports and youth estyle NIKE, Inc. Consolidated Balance Sheets May 31 2013 ASSETS Current assets Cash and equivalents Short-term investments (Note 6) Accounts receivable, net (Note 1) Inventories (Notes 1 and 2) Deferred income taxes (Note 9) Prepaid expenses and other current assets (Notes 6 and 17) Assets of discontinued operations (Note 15) 3,337 2,628 3,117 3.434 1,440 3,132 3,222 857 615 11,845 2,208 370 131 910 15,465 Total current assets 13,626 2452 382 131 993 Property, plant and equipment, net (Note 3) identfiable intangible assets, net (Note 4) Goodwill (Note 4) Deferred income taxes and other assets (Notes 6.9 and 17) TOTALASSETS LIABILITIES AND SHAREHOLDERS' EQUITY 17.584 Current liabiltes Current portion of long-term debl (Note 8) Noles payable (Note 7) Accounts payable (Note 7) Accrued iabiltes (Notes 5. 6 and 17) Income taxes payable (Note 9) Liabilies of discontinued operations (Note 15) 121 1.646 1,986 108 1,549 .941 65 170 3,882 18 3,926 1,210 1.292 Total current labilities Long-lerm debt (Note 8) Deferred income taxes and other liabilities (Notes 6,9 and 17) 974 Redeemable Preferred Stock (Note 10) Shareholders equity Common stock at stated value (Note 11): Class A convertible -178 and 180 shares outstanding Class B-716 and 736 shares outstanding Capital in excess of stated value Accumulated other comprehensive income (Note 14) Relained eamings 5184 4,841 149 .65i5588 10.381 16,465 Total shareholders' equity TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 11.156 17,584 $ The accompanying notes to consoldated fnancial stalements are an integral pert of this statement