Information from the balance sheet, income statement, and statement of cash flows for Nike follows. Refer to these financial statements to answer the requirements. NIKE, INC. Consolidated Statements of Income Year Ended December 31 (In millions) 2019 2018 Revenues $39,117 $36,397 Cost of sales 21,643 20,441 Gross profit 17,474 15,956 Demand creation expense 3,753 3,577 Operating overhead expense 8,949 7,934 Total selling and administrative expense 12,702 11,511 Interest expense (income), net 49 54 Other (income) expense, net (78) 66 Income before income taxes 4,801 4,325 Income tax expense 772 2,392 Net income $ 4,029 $1,933 2019 2018 $ 4,466 $4,249 197 996 4,272 3,498 5,622 5,261 1,968 1,130 16,525 15,134 4,744 4,454 283 285 154 154 2,011 2,509 $23,717 $22,536 Consolidated Balance Sheets May 31 (in millions) Current Assets Cash and cash 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 Total assets Liabilities and stockholders' equity Current Liabilities Current portion of long-term debt Notes payable Accounts payable Accrued pension liabilities Income taxes payable Total current liabilities Long-term debt Deferred income taxes and other liabilities Shareholders' equity Class A convertible315 and 329 shares outstanding Class B1,253 and 1,272 shares outstanding Capital in excess of stated value Accumulated other comprehensive income (loss) Retained earnings Total shareholders' equity Total liabilities and stockholders' equity $6 $6 9 336 2,279 2,612 5,010 229 3,269 150 6,040 7,866 3,464 3,347 3,468 3,216 3 3 7,163 6,384 231 (92) 1,643 3,517 9,040 9,812 $23,717 $22,536 2019 2018 218 15 233 (203) Consolidated Statement of Cash Flows Year Ended May 31 (in millions) Cash provided by operations: Net income $4,029 $1,933 Adjustments to reconcile net income to net cash provided by operations: Depreciation 705 747 Deferred income taxes 34 647 Stock-based compensation 325 Amortization and other 27 Net foreign currency adjustments (99) Changes in certain working capital components and other assets and liabilities: (Increase) decrease in accounts receivable (270) 187 (Increase) decrease in inventories (490) (255) (Increase) decrease in prepaid expenses and other current and non-current assets 35 Increase (decrease) in accounts payable, accrued liabilities and other current and non-current liabilities 1,525 1,515 Cash provided by operations 5,903 4,955 Cash provided (used) by investing activities: Purchases of short-term investments (2,937) (4,783) Maturities of short-term investments 1,715 3,613 Sales of short-term investments 2,072 2,496 Additions to property, plant and equipment (1,119) (1,028) Disposals of property, plant and equipment Other investing activities. (25) Cash provided (used) by investing activities (264) Cash used by financing activities: Long-term debt payments, including current portion (6) (6) Increase (decrease) in notes payable 13 Payments on capital lease and other financing obligations (23) Proceeds from exercise of stock options and other stock issuances 700 733 Repurchase of common stock (4,286) (4,254) Dividends-common and preferred (1,332) (1,243) Tax payments for net share settlement of equity awards (17) (55) Cash used by financing activities (5,293) (4,835) Effect of exchange rate changes on cash and equivalents (129) 45 Net increase (decrease) in cash and equivalents Cash and equivalents, beginning of year 4,249 3,808 Cash and equivalents, end of year $4,466 $4,249 5 3 276 (325) (27) 217 441 (c) Compute times interest earned ratio, cash from operations to total debt ratio, and free operating cash flow to total debt ratios. Financial statements included the following footnote: "Included in Interest expense (income), net was interest income related to the Company's investment portfolio of $82 million and $70 million for the years ended May 31, 2019 and 2018, respectively." Note: Round answers to two decimal places. 2019 times interest earned = X 2018 times interest earned = X